High Interest Credit Cards May Be a Thing of the Past
Is It Goodbye to High Interest Credit Cards?
Congress has recently expressed an interest in how the practices that credit card companies routinely use are affecting millions of American consumers. If you have high interest credit cards and you find that your debt seems like an endless dark tunnel because of them, the bright light you so desperately need may just be appearing in the near future.
Are High Interest Credit Cards A Crime?
Consumer advocates think that high interest rates are bordering on illegal and that the U.S. economy would do much better if consumers weren’t overburdened with high interest credit cards to pay off. Congress is taking notice and is contemplating action against high interest credit cards.
If you’ve ever had credit difficulties, then you definitely know how burdensome credit card debt can be. With high interest rates, it can seem nearly impossible to dig yourself out of credit card debt. Congress is concerned about the amount of money consumers have to spend on high interest rates and fees, and like-minded consumer advocates recently testified on these issues.
The Ball is Rolling
There is one recent change that has made the burden of credit card debt a little more manageable for consumers. The minimum payments have been raised. While this may seem like a bad thing, it is actually to your benefit.
A higher mimimum payment means that the money you send your credit card company should pay off a portion of your balance in addition to paying off your interest accrued that month. Previously, the minimum payments were much smaller, which meant that it was possible to have your credit card balance not go down at all from month to month.
More to Come
Hopefully, as a result of what’s going on in Congress now, we will see more positive changes within the upcoming months related to our credit cards. There is probably not one consumer who wouldn’t benefit from lower interest credit cards.
Comments
As a victim of Identity theft and a lot of maxed out credit cards as well as loss of my retirement from my bank, I resorted to the National Legal Debt Centers. They do excellent work. However, MBNA who was paid off, but because it was a AAA credit card, I now have AAA financial and Bank of America hounding me and it seems like a scam that the Bank of America and AAA financial are pulling, so beware of any dealing with them.
Posted by: Bertram A. Magnus | April 13, 2007 3:39 PM