New credit card laws from the Obama Administration and new rules for the way in which credit card lenders can charge fees and fines may make it easier for individuals with credit card debt to easily erase what they owe. There is more information required to be given to cardholders about how much they owe, the timeframe in which they can get out of debt, and the total amount they will pay when interest is factored in.
This can be helpful for those who may have trouble financially when it comes to handling credit card debt. Simply knowing how much you know, how much you’ll pay in total, and the timeframe in which current payments are set to pay off the total amount of debt you owe will be helpful in forming a plan to combat credit card debt.
By making a budget, no longer spending on unnecessary items, and no longer making charges for items or services for which you do not have the money can make it easier to not only get out of credit card debt fast but stay out of credit card debt for years down the road. Many people who have a large amount of credit card debt often turn to help from things like a consolidation loan, but many financial advisers believe this is the wrong move.
Consolidation loans can make debt easier to handle as there would only be one payment from month to month on all of one’s debt, but this could cause a credit card holder to pay much more over time than they would if they combated their credit card debts separately. While it will take a cardholder looking over their financial situation, ability to repay, and monthly income before a proper plan can be formulated to combat credit card debt, many people can use these new credit card rules to help them in their fight against debt.
Credit card lenders are also no longer able to charge certain fees or fines on cards that have not been used, they can no longer charge excessive penalties that exceed the cash amount of a charge that is being penalized, and interest rates cannot be suddenly increased without warning. While it is hoped that these changes will help cardholders better manage their credit card debt it will take financial discipline on the part of cardholders to simply live within their financial means and not use a credit card as if it were free money.