Revised Credit Card Statements Provide Impetus to Get out of Debt

[Jun 25, 2010.]

 

The Credit Card Act of 2009 is the government's attempt to assist consumers, especially those who are having trouble managing their credit card debt. Part of the act mandated changes on credit card statements. Two of those changes are having a positive impact. Consumers are clearly being shown how long it will take them to pay off their balances using different payment amounts, and they are being given a suggestion to seek a debt specialist if they feel they need help managing their debt.

How Long Will It Take to Get out of Debt?

As of February 22, 2010, credit card statements must now include information about how long it takes to get out of debt making just the minimum payments. For comparison, credit card holders are also given a payment amount that would pay the balance in full within three years.

Sample Balance: $3,000 with an interest rate of 14.4%

Minimum Payment of $90 pays the balance off in 11 years.

Paying $103 monthly pays the balance in 3 years and saves over $1,000 in interest.

This type of information has been an impetus for consumers to reduce debt. Why wouldn't someone pay an extra $13 per month to get out of debt eight years faster and save over $1,000? Seeing the difference an extra amount makes printed in black and white is making a significant change to the way people are managing their credit card debt.

More Consumers Are Looking for Credit Consolidation Opportunities

In addition to the information regarding the length of time it takes to get out of debt, the revised statements include a phone number for people looking for credit counseling. The revised credit card statements are giving people the idea to check out their options for credit consolidation opportunities. Reputable companies that provide consolidation loans are reporting a record number of calls, often from consumers who have never previously asked for help.

Free Debt Consolidation Advice Is Available

People who want to check out their options for credit consolidation do not need to pay for advice. Free debt consolidation counseling is readily available. Get free debt consolidation advice now.

 

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.