Credit card debt relief plans from the Obama Administration and new credit card rules have been set in place to make the practices of credit card companies less burdensome on cardholders. Many individuals were often surprised with sudden increases in their interest rate, excessive fees and fines, or similar practices that caught cardholders off guard and made their credit card debt burdensome.
As a result of some of these practices many cardholders have trouble dealing with their credit card debt and suffered a loss on their credit score. However, these new credit card rules are set to stop these practices by requiring credit card companies to offer notice before interest rate increases are put in place, ceasing the practice of charging excessive fees or fines, as well as, providing more information to cardholders about their repayment and credit card debt situation.
Yet, these credit card rules and the Obama credit CARD Act are not a governmental assistance plan to help erase debt, which is something that many individuals feel to be the case. For instance, there are no government programs that will erase one’s credit card debt, but these new laws and rules can make getting out of credit card debt easier because they provide more information to the credit card holder and they stop practices that can cause costs on one’s debt to rise.
The Obama credit card relief plans and new credit card rules are simply set in place to allow cardholders the opportunity to get their finances in order, but this will require work on the part of the cardholder. By stopping what is deemed as unfair practices on the part of credit card lenders, it is hoped that cardholders will be able to formulate a better repayment plan on their debt, change their financial habits in a way that will allow them to repay their debt in a timely manner, and begin living within their means rather than using their credit card as a way to buy now and pay later even if they don’t have the financial funds to do so.