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New credit card rules – How they may help the cardholders

Credit card users are yet to witness the most dramatic changes in credit card terms. The interest rates, fees and the credit card terms are subject to change under the Federal law which has come into effect recently. The credit card laws have taken care of the consumers to some extent keeping in mind the requirements of the credit card companies. The new rules of credit cards have become more transparent and easier to understand. Only that the upfront costs has become higher. The credit card issuers are of the opinion that the new rules have made credit cards less accessible to low-income families or people with bad credit. Thus, if the credit cardholder has incurred a huge amount of debt, he can easily go for credit card consolidation from a debt consolidation company. Have a look at the highlights of the new credit card law.

1. Interest rate hike under control: The new credit card law increases interest rates on existing balances only under limited conditions. This can come into account only when a promotional offer or an introductory period ends or when the cardholder has been late on his payments. In case of new transactions, the interest rate on the new transaction can only rise after a period of 12 months. If there is any significant change in the terms of accounts to be made, a 45 days prior notice has to be made before applying for the mentioned change.



2. Time frame of paying off debt: The new rule demands the credit card companies to use simple language while preparing the monthly billing statements. At periodic intervals credit card companies also need to display on the billing statement the time consumers would take to pay off their monthly balance if they are only making the minimum payments. The statement should also include the interest rate that is charged each time the cardholder makes the minimum payment every month. This will enable you to keep a track of your payment dates and you can avoid late fees with the help of this law.



3. Billing practices: The new rule pertaining to the credit card act also requires the billing date to be the same for all months. But the credit card bill should be notified to the cardholder at least 21 days in advance of the due date. Payments that will be made by the cardholders will first go towards the highest interest rate balance so as to pay it off faster.

Where to go if you incur credit card debts?

After the new credit card bills have been passed, the credit card companies have become more stringent in their transaction processes. This change has been implemented due to the rise in credit card debt. But it is not that the problem of credit card debt has decreased significantly with the new rules. Still, people are incurring huge amount of credit card debts. If you have also accumulated your credit card bills, then go for credit card consolidation. There are many online resources which can help you in this regard. One such website can be www.cru-usa.info which details out many credit repair iusses. You may think of consolidating your debts on your own, but that would be the biggest financial blunder. Often experts have seen that consolidating debts on your own hurts your credit score in a significant way. You would fail to qualify for further loan and insurance with a poor credit score. So avoid doing it on your own. Instead go to a professional site who can help you reduce your credit card debts and pay off debts affordably.