There were many people who applied for new credit cards in the past without actually reading through the most important part of the contract which is the small print.
This is only part of why people suddenly saw their interest rates jacked up into the stratosphere.
This put an extra burden on them and during a recession these are the kinds of things that can put people into financial hardship.
President Obama recently passed a new law a little while back that will really help bring some relief to the many credit card holders who have suddenly found themselves on the wrong end of an interest rate hike in which they know that they cannot afford.
There are many highlights to this new law , but one of the most immediate benefits of it are that interest rates of current credit card holders can only be increased under special circumstances such as if you make a purchase and are late on a payment, plus any future transactions of current card holders will not see their interest rates raised until 12 months later.
These are very moderate and reasonable incentives to help ease their burdens and also give a good reason to start paying off their credit card bills on time.
There is another awesome part of this new law that will also come into effect.
There is a term that is commonly known as a universal default.
What this phrase means is that if you are behind on your other bills that have nothing to do with your credit card bills, the credit card companies cannot raise your interest rates on any of your current cards.
I agree with this law because bills that have to do with your credit card purchases should never be related to things that have nothing to do with them.
This is like someone charging you a higher payment on your new car because you owe a friend some money from 20 years back.
Consumers have enough problems get by day to day without having every aspect of their finances tied together.
In the past credit card company never supplied us with the information that was needed in knowing how long it would take for us to pay off our CC debt just by paying the minimum that we are charged every month, but now thanks to the Obama law, credit companies must now disclose the approximate amount of time that it will take to pay off a persons entire balance if they choose not to pay it off in large chunks and opt to go for the minimum.
Most people never take the time to really calculate and crunch these numbers but our president is now making sure that the big credit companies are held responsible for providing this info to us.
Now we cannot have any excuses at all in not knowing this (even laziness).
I like the bill not only because it will provide some much needed instant relief but it will also help to educate us into becoming more fiscally responsible in how we handle our monthly credit bills and how it pertains to the interest rates we are being charged.
This is only part of why people suddenly saw their interest rates jacked up into the stratosphere.
This put an extra burden on them and during a recession these are the kinds of things that can put people into financial hardship.
President Obama recently passed a new law a little while back that will really help bring some relief to the many credit card holders who have suddenly found themselves on the wrong end of an interest rate hike in which they know that they cannot afford.
There are many highlights to this new law , but one of the most immediate benefits of it are that interest rates of current credit card holders can only be increased under special circumstances such as if you make a purchase and are late on a payment, plus any future transactions of current card holders will not see their interest rates raised until 12 months later.
These are very moderate and reasonable incentives to help ease their burdens and also give a good reason to start paying off their credit card bills on time.
There is another awesome part of this new law that will also come into effect.
There is a term that is commonly known as a universal default.
What this phrase means is that if you are behind on your other bills that have nothing to do with your credit card bills, the credit card companies cannot raise your interest rates on any of your current cards.
I agree with this law because bills that have to do with your credit card purchases should never be related to things that have nothing to do with them.
This is like someone charging you a higher payment on your new car because you owe a friend some money from 20 years back.
Consumers have enough problems get by day to day without having every aspect of their finances tied together.
In the past credit card company never supplied us with the information that was needed in knowing how long it would take for us to pay off our CC debt just by paying the minimum that we are charged every month, but now thanks to the Obama law, credit companies must now disclose the approximate amount of time that it will take to pay off a persons entire balance if they choose not to pay it off in large chunks and opt to go for the minimum.
Most people never take the time to really calculate and crunch these numbers but our president is now making sure that the big credit companies are held responsible for providing this info to us.
Now we cannot have any excuses at all in not knowing this (even laziness).
I like the bill not only because it will provide some much needed instant relief but it will also help to educate us into becoming more fiscally responsible in how we handle our monthly credit bills and how it pertains to the interest rates we are being charged.
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