by First Rate Debt Solutions
21. May 2009 19:33
A bill that would dramatically change the way credit card companies do business in the United States was approved by Congress this week and is on it's way to the President for signature.
The bill says that credit card companies will now have to inform their card holders at least 45 days in advance before they raise interest rates or change any other terms and conditions. Even more importantly, the new law will prohibit the credit card companies from raising the interest rates on existing debt unless the payment is at least 60 days late.
Another big change will force the credit card companies to tell their card-holders how long and how much it would take to pay off a card if they only make the minimum monthly payment.
These changes will not take effect immediately but will ultimately help to protect consumers who have in many cases found themselves in debt far more than they can handle and feeling victimized by the credit card companies.
The credit card companies are fighting back saying that the changes will only increase the cost of credit to consumers. But the changes really just put more information out that consumers need when deciding to use their credit cards.
Americans held nine hundred forty-six billion dollars in credit card debt at the end of March. Many of those are having trouble making their payments each month due to rising interest rates and other circumstances. If you are one of the millions of Americans struggling with credit card debt, First Rate Debt Solutions has programs that can save you thousands of dollars.
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