subject: Credit Card Debt - How New Regulations Helps Consumers With Credit Card Debt [print this page] Credit Card Debt - How New Regulations Helps Consumers With Credit Card Debt
Looking at the financial problems of people at large it was observed that people have had to deal with a great deal of problems due to the inconsistent policy and interest rates of the credit card companies. Therefore there have been many problems which have been brought in by the government to get people on a more even footing with their finances.
Improper management of finance and bad financial conditions created by recession compelled almost everyone to make tremendous and frequent use of cards to fulfill their necessary or unnecessary requirements even on cashless position. But this misuse of card pushed common man under the load of huge unsecured debt due to immensely high applied interest rates on the original lend amount and extra late fees by card companies. But new card debt laws and amendments made in them are in favor of consumer to get rid from their bad debts.
According to new intended card debt laws, credit card providing companies are restricted to apply immensely large interest rates on late paid or unpaid debt balances except in the situation when you failed to pay back your debt amount within two months. Credit card companies are also not allowed to unexpectedly raise the interest rates within one year of borrowing the credit card.
The important aspect of newly signed card law is credit card companies are restricted to provide cards to student or individuals who are below the age of 21 and have no regular monthly income which makes them incapable to maintain their finance properly and provide bad debt balances. Anyone who is under 21 won't get the service of credit card until he or she is having a proper and solid proof of regular uninterrupted monthly earning. Recently in a study it is found that a large number of college going students are taking the services of cards and are bearing debt balances around 3000-4000 $ on their different cards.
Some card companies charge fees for the mode of payments made by consumers like by internet or by telephonic mode etc. which is completely devoid and restricted as per new laws of card debt. Creditors are intended to provide a notice period of at least 45 days for sure before making any variation in present contract clauses or any kind of increment in the rate of interest which was only 15 days before newly introduced laws of card debt.
In the intention of avoiding the rising percentage of bankruptcy and eliminate the ultra bad debt balances of consumers these laws are signed and common man should have their advantage.
Their are several debt relief options available in this market so it would be wise to speak with a debt relief specialist to determine which option makes the most financial sense for you. Whether it is credit counseling, debt settlement, debt consolidation, or bankruptcy, a debt relief specialist will be able to steer you in the right direction.
