Credit card reform is here. So how long will you be in debt for?
It’s been talked about for close to a year and last Monday, the day for credit card regulation arrived. The reform includes changes from restrictions on finance charges, rate increases and billing to new regulations for consumers under the age of 21 to access credit. Here’s a summary of some of the new rules from ConsumerReports. One of the most visible changes will be to your credit card statement. If you have not received your statement since the reform took effect, you are in for what can be a very eye-opening experience.
Credit card companies will now be offering full disclosure when it comes to your debt and how long it will take to pay it off. Even if you prefer being in the dark about this information, it will now be part of your statement whether you like it or not…right there in black and white. Every monthly statement will now indicate how long it will take to pay of your balance if you only make the minimum payments and the total you will pay including the interest and principal. So you can finally see how much that new flat screen TV will really end up costing you.
Check out this article over at Lifehacker to see an example of what these changes will look like on your credit card statement.
Have you received your new statement yet? Tell us your reactions to the new disclosures and the credit card reform. And if you are willing to admit, how long does your credit card company have you in the debt trap for?
When you see the interest you will pay,and a 10 year payment plan when you only pay the minimum, it makes you think twice about using credit cards for luxury purchases.
This is great news.
Its about time they helped us out. Because i am in hell of debt.
Credit card is popularly plastic money. The bank issues a card in the name of the client that enables him to pay for goods and services within the limit stipulated.