Credit Card Relief Act

As mentioned, the government credit card relief act is aimed at changing the way credit card companies do business. It calls for greater transparency in the credit norms and also forbids card companies from arbitrarily changing the terms of contract. The act is one of the steps taken by the Obama administration to help the population deal with their financial situation. ◆ The act requires the card companies to give at least 45 days notice if they want to make any changes to the existing interest rate.

◆ The act is also referred to as bill of rights, as it gives rights to the consumer to cancel their card if the companies hike the rate of interest. Consumers have up to 3 billing cycles to say no to any new terms regarding the interest rate. ◆ Under the Credit Card Debt Relief Act, companies are required to have their credit card contracts online for government scrutiny. It also mandates companies to submit credit card agreements to the federal reserve board at the end of each quarter.

◆ This government credit card debt relief initiatory also stipulates the size of the font that has to be used by companies for the contract. Companies have to mail the credit statements to the consumers 21 calendar days in advance before the due date, which is 7 more days than the earlier time frame of 14 days. ◆ Another important provision calls for companies to have the due date on the same day each month. If the due date falls on a weekend or government holiday it should be re-scheduled for the next business day.

◆ Companies have been prohibited from using 'double cycle billing' in which they use previous month's balance to calculate the current month's bill. The new act puts a ceiling on the number of 'over the limit' fees companies can charge. ◆ Credit cards can't be issued to people who are under the age of 21 unless they have a co-signer. ◆ Card companies cannot set an expiry date which is less than 5 years. Credit card companies cannot charge service fees on non-operational cards unless they haven't been used for more than 12 months.

Even though the spending limit is considerably less, they work like most other credit cards. After the student has mastered using the credit card, they can then manage their overall money better. These types of credit cards are an excellent opportunity for the students to learn money skills that will last them a lifetime.

With all of the great benefits of student credit cards, they can still be dangerous, just like more traditional credit cards. Students can still fall into the pitfall of overspending. If the student racks up more credit card debt than they are able to pay, this will have a negative affect on their credit rating.

If the debt falls on the co-signer, it could then affect their credit rating as well. Therefore, it is essential that students all have a budget in place before using any credit card. Overall, student credit cards are a great thing to have. For college students and high school students, such cards are a great way to learn responsibility, as well as the sense of freedom. They can be useful during an emergency, which could be reason enough to obtain one. If your daughter or son is in school, you may want to consider a student credit card. They can not only help establish their credit, they can teach them many life lessons.

Credit cards can be a blessing or a curse. It all depends on how you use them. They are great when you have an emergency or an unexpectedexpense. However, if you buy every new style of shoes that comes out or eat out 4 or 5 times a week you are likely to find yourself with mounting debt on those credit cards.

Credit card debt is on the rise in this country and reaching an all time high. Credit card companies are making very easy to get credit. You can have all your creditcards maxed out, but as long as you make that minimum monthly payment, these companies will be willing to extend you more credit.

But, who is benefiting by you having all this credit, Do the credit card companies have your best interests in mind, by giving you all this credit, Thecredit card companies have everything to gain, especially your interestpayments. As long as you are making your minimum payment, these companies are happy, because they are also making a substantial amount off of you in interest payments.

Having spent time working in the credit card industry, it was very obvious that if you make only minimum payments you are going to be in debt a long time. 195 of that payment went to pay there interest charges. Credit card companies have designed their payment system to keep you in debt. It is up to you to make the necessary changes to get yourself out of debt. It was said that at the beginning of 2006, minimum credit card paymentswould increase from 2% to 4% of the balance.

I have not really seen where that has happened. Bottom line is you are going to have to make some decisions if you wish to have a debt free future. You are robbing yourself of your dreams if you spend many years making the credit card companies richer. Credit cards have their place.