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Credit Card changes

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Better late than never (extreeemely late if you ask me). Today is the day a lot of news rules targeted at the credit card industry take effect. Of course these guys will always find ways around a lot of new legislation aimed at curbing their excesses, but it’s important that we keep trying.

One of the most egregious practices, that of applying any rate hikes to your entire balance, will be addressed in the rule changes. Now any hikes in interest rate can only be applied to new charges. Another handy little requirement:  your monthly statements will be required to specifically state how long it would take to pay off your debt if only making minimum payments. I think a lot of people will be truly shocked to know how long it will take them to pay off their cards by only paying the minimum.

Still though, there is no cap to how much interest they can charge, which to me is a huge failing of this legislation. And they can lower your limits anytime for whatever reason – or no reason. So it’s certainly not going to keep them 100% honest – their lobby in congress will keep that from ever happening I am afraid. But at least it is a step in the right direction.

Do not take my word for these changes. You should have received or will be receiving documentaion explaining the changes. Please take a few minutes to inform yourself. It’s important!!

Also, I am including this link to the Federal Reserve, where you can find out more about credit card changes.

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