You win some, you lose some - at least, that's the way it seems with this year's new credit card laws.
On the one hand, recent consumer protection rules will give consumers a chance to get current on credit card payments and remedy mistakes before they're hit with penalties they can't afford, like suddenly rocketing interest rates. On the other hand, with banks unable to increase rates and fees on delinquent borrowers, they're increasing rates for everyone. That means paying more interest on your debt, even when you pay the bills on time.
In the end, the payoff might be worth it. Until recently, being late on a single payment meant your credit card issuer could jack up your rate on your existing balance and charge you late fees to boot. If you had trouble managing your debt before, you'd really have problems now. But thanks to the Credit CARD Act, issuers have to wait 45 days before making changes to your account - time you can use to get things sorted out.
Now that doesn't mean that creditors can't ever raise your rate - they just have to give you fair notice, and they can only raise interest on future purchases, not past ones. And as previously mentioned, credit card companies are recouping lost profits by raising interest rates across the board - on both new and existing accounts.
If you're a good credit card customer, it might not seem fair to pay higher interest. But on the bright side, at least you retain control over your money. Thanks to new laws, you'll know upfront what you'll be paying. Don't like it? Then you can make the decision to wean yourself off credit. Less credit card purchases means lower debt - and less stress. If the debt you already have is making it impossible to get by without credit, you're stuck in a rut - and bankruptcy can offer you a way out. Find out if bankruptcy can be your ticket to a fresh financial start when you try a free personal debt analysis courtesy of an Atlanta bankruptcy attorney.
