May28
What Credit Card Reform Means to Those With Current Debt
July 2010 is right around the corner, and that means the new credit card reform laws will go into effect. Many consumers are looking forward to this, as it will ease the pain associated with flexible due dates, ever-increasing interest and other concerns that can make the convenience of a credit card a real headache. For those who already have credit card debt to pay, you may or may not benefit from these3 new laws. Read on to find out more.
Current Card Holders and New Card Holders
If you currently hold a credit card and are paying on your debt each and every month, or you are planning to apply for a new card, you can count on benefiting from the new credit card reform laws. The credit card companies will now face tighter regulation regarding when and why they raise interest rates, seeing to it that your bill is due the same day every month and not using shady tactics to overcharge and get you in a financial bind.
While you still will have a bill to pay, every month, of course, you can breathe a sigh of relief. There will be fewer surprises and the experience of owning a credit card might just become a bit more pleasant for you.
Credit Card Debt and Canceled Accounts
If you owe outstanding debt on a credit card you no longer own – an account that has been canceled or closed, you’re not going to have the privilege of benefiting from the new credit card reform laws. The debt you owe will remain the same, interest included. The only time you will see any reduction is with each subsequent payment made. While it does not seem fair, it is considered older debt, which is not covered under the reform provisions. This is not a time to count on the credit card companies to cut you a break anyway. With the losses they face under the new law, credit card companies are sure to take advantage of reaping added profits whatever way they can.
