The new (Credit) CARD Act took effect on February, 22, 2010. One major provision has new rules for interest rates.
Credit Card issuers cannot increase your interest rates during the first 12 months of a new account. On existing accounts, if your rate is increased, the new APR (annual percentage rate of interest) only applies to your new purchases.
Your existing balance is still charged the old interest rate…. with some exceptions on both of these provisions:
** if the card has a variable rate and the index goes up.
** if the introductory period ends and the rate increases to the standard rate.
** the payment is more than 60 days late.
** payments fall behind in the debt management plan.
** Any monthly payments above the minimum amount must be applied to the balance with the highest APR first.
My take on this. Sounds good… But this one provision alone is confusing and complex. We, the customers, find it difficult to track this process to verify the law is being followed. Sound money management means we review the system for accuracy. Many times I find errors that rob me of my money. Hmm. Why can’t things be more simple, clear, usable and effective?
Solutions are available – when we take control and manage our money. Here’s some ideas. 1. Pay off the entire balance on your credit card every month…. pay no interest, special fees, charges. This means that we do NOT spend more than we earn – a basic financial management principle.
OR…
2. If the balances are too large to pay off every month – develop a specific plan to pay that balance off over time (as little time as possible). Make payments promptly every month and even increase the payments when have extra cash. Enjoy the feeling of peace, happiness, control in your life.
Each of these solutions are simple… But they do require work and focus on a plan.
The Good News: YOU are a BraveHeart Woman --- You can get results!! Make a commitment and do it. It will be one of the best decisions you ever made in your life. I stand by offering to serve you in any way I can .. feel free to email me.
3. Know and understand the other new Credit Card Act provisions, at least the basics, to see if there are any major pitfalls that need to addressed in your individual situation.
You can find the Major Provisions of the new Credit Card Act in my Community, renamed to “
Thrifty is Nifty” from “Passion Branding”. Also feel free to contact me with questions. I welcome ways to serve you best. Your questions are the same ones other people have and they will appreciate answers too.
Take your money seriously! You are a BraveHeart Woman … You will accomplish results you commit to!
Barbara Filla
Thrifty is Nifty Community
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