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As card companies change accounts, some consumers may consider debt consolidation to avoid additional money problems
02/01/2010
Though new laws have been approved by the federal government that should protect consumers, many card companies are trying to skirt them before they take effect.
The Federal Credit Card Accountability, Responsibility and Disclosure Act will limit a lender's ability to increase interest rates and fees. However, in a column for the Chicago Sun-Times, Terry Savage noted that many card companies have switched their customers' accounts to variable rates, which are not covered by the act.
In order to avoid any tricks up the sleeves of card companies, Savage said consumers need to work on paying off their credit card debt.
"If you take the current minimum monthly payment, double it, and keep paying that same amount every month without charging another penny, your card will be paid off in less than three years," Savage wrote.
However, not every consumer has the means available to do them to be able to pay off large amounts of credit card debt. If that is the case, they may consider debt consolidation, which can help them pay off debt through lower interest rates.
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