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Though Credit CARD Act may help in the future, those already facing problems may consider debt consolidation
By Peggy Stillwell on Feb 10th, 2010
While consumers continue to deal with the difficult practices associated with credit cards, one representative noted that new rules may help people in the future.
Wisconsin Democrat Tammy Baldwin recently penned a piece that was featured in the Capital Times. In it, she highlighted some of the features of the new Credit Card Accountability, Responsibility and Disclosure Act, which she co-sponsored.
Starting February 22, card companies will no longer be able to increase interest rates on credit cards during the first year they are open. Some portions of the act already took effect last year and require that lenders provide consumers with a 45-day notice before raising interest rates.
"If your credit card company is going to make changes to your card’s terms, it must give you the option to cancel the card before certain fee increases take effect," Baldwin said.
Though that may help some, other consumers may already be mired in credit card debts that they can't handle. One thing they may consider is debt consolidation, which may end up lowering the interest rates consumers pay on credit card debt, making it easier to reduce it.
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