Post Content

 

This week, new federal rules regarding your credit card accounts take effect. The changes include a number of mandates that improve your ability to get information about your balance and payments, and they are changes that were very striking to me when I received a bill last week.

I returned home from a vacation to get a credit card bill that included a number of charges from my trip. It was the first bill that included a key provision of the regulations – that the bill details how long it would take to pay off the existing balance by making the minimum payment, and how much it would eventually cost. For the first time, that information was in black and white on my bill. I am very glad I pay my bill off each month.

If I were to pay the minimum, it would take me 22 years to pay off the balance. And it would cost more than double than what I put on the card. I enjoyed my vacation very much, but I don’t want to be paying it off in 2032, and I don’t want to pay more than twice what it actually cost me.

Consumers traditionally only saw their existing balance and minimum payment in the past. Knowing how much it would cost in the long run would take a degree in advance mathematics. These new regulations give consumers more information – and information is power when making decisions, spending money, and knowing just how costly credit card debt can truly be.

The new regulations do a number of other things – including setting specific due dates for each month, guaranteeing 21 days to make a payment, and creating new protections for college students. Across the board, these rules restore some power back to consumers, and give them the eye-opening information necessary to make smart choices with their money.

Written By:

Recent Posts

Charity and Disaster Scams: Don’t Let Criminals Pull at Your Heart Strings posted on Jun 29

Charity and Disaster Scams: Don’t Let Criminals Pull at Your Heart Strings

  In the wake of a natural disaster, it is common to want to help those affected by tragedy.  Unfortunately, individuals and organizations attempt to take advantage of your generosity by posing as phony charities to steal your money or financial information.  Following a natural   …Continue Reading Charity and Disaster Scams: Don’t Let Criminals Pull at Your Heart Strings

If you have a Ticketmaster account, here’s what you should know about those “free” ticket vouchers posted on Jun 22

  You may have been hearing about “free” ticket vouchers in your Ticketmaster account and, like many consumers, assumed this was just another scam. It’s not. Here’s the deal: In 2003, a class action lawsuit, Schlesinger v. Ticketmaster, was filed alleging that Ticketmaster failed to   …Continue Reading If you have a Ticketmaster account, here’s what you should know about those “free” ticket vouchers

Using Credit vs. Debit Cards posted on Jun 20

Using Credit vs. Debit Cards

  For many consumers, plastic is the preferred currency when making a purchase. But how does a consumer know if he/she should use a credit card or a debit card? What is the difference between a credit card and a debit card? Credit cards use   …Continue Reading Using Credit vs. Debit Cards