subject: Eliminate Credit Card Debt - Modifications in Credit Card Policies May Eliminate More Consumer Debt [print this page] The new regulations imposed by the government on the card companies is definitely going to bring sweeping changes in the Credit banks and on the whole in the financial market. With the modifications in the Credit card policies the predatory and unfair tactics applied by the Credit card companies is going to eliminate and the poor credit cardholders can breathe a sigh of relief. A card debt is a unsecured debt accumulated by customers when they purchase any item via credit card and the debt increases with the addition of interest and penalties as the consumer is unable to pay and soon theses debts becomes unmanageable and a huge liability.
Few years back the most viable and lucrative alternative in front of the customers seemed to be filing for bankruptcy but with the recent changes and modifications in the credit card policies it is harder to file for it. The main highlight of this new policy is stricter finance charge and increase in interest rate rules. The law limits hike on interest rates on existing balances and also formulated that there will be no increase on interest rate in the first 12 months of purchasing a card, Now this is a huge relief to the customers as their one of the main reasons of debt is increase in interest rates as and when the company desires putting liability on masses. The law proposed that a 45-days notice will be given to the credit card holders by the issuers before increasing interest rate or making any changes in your credit card agreement. This is a big advantage for the customers as opposed to the earlier 15 days notice which did not give the consumers enough time to manage and manipulate their finances and thus resulting in debts. The other components of the law conserving consumer protection includes- banning the universal default practice, limiting interest rate hike, restricting the card issuance to the minors, thus benefiting people in a massive way against the shrewd card policies.
The most liberating and constructive things people can do to free themselves from the financial entanglements and the accumulated debts is to keep a disciplined and planned approach in their spending and saving habits. The modification in the card policies is a welcome change towards the outrageous and unreasonable card policies,
Eliminate Credit Card Debt - Modifications in Credit Card Policies May Eliminate More Consumer Debt
