| The
Combination Of Higher Credit Card Minimums, Tighter Bankruptcy Rules And
Rising Gasoline And Heating Costs Will Make It More Difficult For
Consumers To Keep Up With Their Monthly Bills.
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| The
Difference In Minimum Monthly Payments Is Significant. In This Example Of
A Monthly Statement, A Higher Minimum Payments Means A Consumer Would Have
To Pay $134 More A Month.
|
| Monthly Statement | Before | After |
| Balance | $10,000 | $10,000 |
| Minimum monthly payment | $208 | $342 |
| Monthly interest | $242 | $242 |
| End Balance | $10,034 | $9,900 |
Remember :
| There
is no federal law capping interest rates. Within
the past 6 months, banks have increased their interest rates on credit cards,
increased their late fees ($39 - $40) and are raising penalty rates 25% or
more if the consumer is late even once with a credit card payment. |
| Some banks can charge
high-risk cardholders 29% a year or 2.42% a month in interest. |
| One
of the most anti-consumer credit card regulations is “universal default”.
Approximately 44% of credit card companies now engage in this practice.
This means if a consumer is late paying any bill (utility, car etc.) or
if his credit score falls or even if he gets a new credit card, the credit card
company can raise his or her credit card rate above 20%. |
| Cut
off times to pay monthly bills are now measured by the hour as well as the day.
For example: Payment after 3.00 p.m. on Monday, July 2nd, means
you will be charged a late fee after 3:00pm and not after midnight of that day. |
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Credit card companies are required to follow consumer laws from the state in which they are based. That means those laws then apply to all their cardholders throughout the U.S. Many credit card companies have moved to states with weak consumer protection laws (e.g. South Dakota). |
Consumers
With Large Balances Need To Take Steps To Reduce The Impact Of The Changes In
Minimum Payments And Interest Rates.
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