Credit Cards--The Good, The Bad, The Ugly

Thursday, October 2, 2008

Credit Cards--"The Good, The Bad, The Ugly"

 Credit cards maybe about to become a better product for the average American consumer. Typically, if one paid even a day late guess what a consequential "rate hike" occurred. Also, should one carry a higher balance then "those good ole boy's" tended to jack our rates up even more while lowering the limits in the process. Credit card companies pushed for tighter bankruptcy regulations and made the new laws enacted in 2005 even harsher should one find themselves in the unfortunate position to need to file for bankruptcy protection.

Most consumers pay an average of 19.9% and even in excess of 29.9% for the privilege of carrying credit card debt. This is both a privilege and becomes a curse as the issuers increase the rates and lower the limits at whim.
As a measure to help consumers, and good news for us, the Credit Cardholders Bill of Rights will be considered by the Senate in January. This will not be a "cure all"; however it does allow for the following provisions: 

     "eliminating predatory lending practices like retroactively applying interest rate hikes to balances, and implementing new requirements such as a 45-day notice before raising interest rates."

This in turn, would hopefully allow the consumer, Joe Public, to act and possibly avoid the new rate being imposed.
http://www.smartmoney.com/

Posted by Eric McGowan at 8:57 AM Labels: Alalender, Central Alabama Mortgages, Credit Cards, Credit Scores, St. Clair County Mortgages, St. Clair County Real Estate, U.S. Dollar