Lately, there has been a lot of talk about new rules and regulations coming about through the industry and this has made a lot of credit card companies scared where they stand. If you want to apply for unsecured credit card deals in the next few years you may want to read this article and learn more about how this might affect you.
The New Rules
The new credit card rules are going to get more stringent so these companies can’t take advantage of people so easily anymore. The U.S. Federal Government is putting a limit on the fees a credit card company can charge. Everything from the annual fees to overdraft fees will be cut down.
This is great if you’re the consumer but not so great if you’re the credit card company. So what are the companies doing to combat against these new laws, raise interest rates? That’s right they are going to raise the interest rates. In fact I didn’t believe them at first and then I recently heard on the radio from a Fox News source that one particular company had already raised its credit card rates up to 80% interest.
Talk about a lot of money being spent on interest payments. If you look at the top 10 credit card deals out there now they won’t be the same in a year from now considering what I just told you. The rates are going to go through the roof. In fact they may even double or even triple some people’s credit card debt as a result.
How To Handle This Situation
If you’re someone who has a lot of credit card debt my suggestion is to pay off the debt and cancel the card altogether if they raise your interest rates. Doing this will send a message to credit card companies that we don’t like what they’re doing and as a result many people will cancel their credit cards and go elsewhere for a loan.
Transferring your Credit Card balance
Many credit card providers offer 0 APR Credit Cards if you transfer your outstanding balance to them. This could be a good idea, but be aware of the fact that after the grace period, which could be anywhere between six and twelve months, the APR is probably going to be above average. So check the small print!
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