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End Credit Card Debt Before New Laws Take Effect

[Feb 20, 2010.]

 

Seek a debt settlement program or a debt consolidation program before you get soaked by new higher interest rates and fees on your credit cards. Banks are being held to a new standard under the Credit Card Accountability Responsibility And Disclosure Act Of 2009. Read the new law.

Banks have taken huge loses in recent years from mortgage defaults. Credit card defaults are on the rise as unemployed people stop paying their debts. Have no doubt, the banks will make up the money they lost. Guess who pays? You do!

Credit Card Accountability Responsibility And Disclosure Act Of 2009

  • Your credit card statement tells you how long it takes to pay your balance in full if you are making just the minimum payments. It also tells you the payment you need to make to pay the balance in full in three years.
  • You can now opt out of over the limit transaction fees. If you are trying to make a purchase that takes your balance over the high credit limit, causing an expensive fee, you can opt to have the bank decline the transaction.
  • If your interest rate is increased because you miss a payment, the new higher interest rate can only be charged on new purchases and not on the entire balance. Read the law for more details.

Here Are Options You Can Explore To Get Out Of Debt

  • Eliminate credit card debt faster with a credit card debt consolidation loan. If your credit rating is good, banks may be able to offer you a credit card debt consolidation loan. Combine all of your balances into one with a low, fixed interest rate and specified pay off term.
  • Personal loans are one way you could design your own credit card debt consolidation or debt consolidation program. Personal loans are unsecured like a credit card, but are usually term loans and not revolving. Use a personal loan to get out of debt.
  • Find a debt settlement program. If you have lost all, or part of your income, your debt holders may be willing to settle with you for less than you owe. A debt settlement program is managed by a debt specialist who has experience securing the best deal for your settlement. A debt relief specialist can help you to pay as little as possible while maintaining your credit rating.

Consider all of your options for getting rid of your debt and make an informed decision.

 

About Author:

Renee Morgan has been a loan officer for over eighteen years. She is also a freelance writer and guest expert for radio and TV.

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