Many individuals with credit card debt are often looking for a way in which they can better manage and pay off their creditors and with help from new credit card rules that have recently been put into place and the Obama CARD Act, there are more opportunities for people with credit card debt to better manage their finances. However, the CARD Act and new credit card rules are not a “bailout” for cardholders who have a large amount of credit card debt.
While there are financial services and advisers who can help individuals gain more control over their credit card debt and help cardholders develop a financial plan would allow them to get out of debt easier, these new credit card rules and laws are simply set in place to help cardholders avoid unfair practices by credit card companies. For instance, a sudden rise in interest rates caught many people off guard in the past and this practice is now no longer available unless a cardholder is given 45 days notice.
Also, credit cardholders may have seen a change in their credit card bill that was supposed to give them more information about the amount of debt they owe. For instance, many cardholders would simply make the minimum monthly payment due on their credit card bill and think little else of their credit card debt situation, but new data provided on credit card bills is supposed to help individuals get out of debt easier since it provides them with more information about their debt.
Credit card bills should show the total amount, with interest, a cardholder will pay if they only make minimum monthly payments, provided they no longer make charges on the card corresponding with that current bill. A credit card bill gives information to the cardholder about how long it will take them to repay their current amount on the card, as well as, how much they will pay total if they continue to meet minimum monthly payments.
While these new credit card rules and laws are set to give cardholders more information about just how far in debt they are and ways in which they can erase their debt faster, not to mention, rules that are put in place to stop credit card companies from quickly dumping charges on cardholders, it will be up to a cardholder to handle their debt essentially. These new changes in credit card rules and laws can be helpful but they will only go so far as to provide the information and new alternatives to getting out of credit card debt. Changing one’s financial habits, budgeting style, and repayment discipline on their card will come down to the cardholder and how badly they want to get out of credit card debt quickly.