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While lenders raise rates and fees on cards, consumers may choose to turn to debt consolidation
By Edith Barlow on Feb 13th, 2010
In their preparation for new rules from the Credit Card Accountability, Responsibility and Disclosure Act, many lenders have changed account terms on their customers.
It's a fact that may irk many consumers, especially those who have kept current with their bills and pay things off in full. However, it is also a practice that is legal, as was recently noted by Philadelphia Daily News columnist Harry Gross.
Though some of the Credit CARD Act's stipulations started last in August of last year, new laws restricting card companies' ability to increase rates do not take hold until February 22.
"In the meantime, card issuers from coast to coast got busy requiring fees, raising interest rates, and generally getting themselves set for tighter regulations," Gross wrote.
Given that some people were already having difficulties making minimum payments on their credit card debt, an increase in fees and rates could make it almost impossible. However, there are other options consumers may consider when facing piles of bills.
For example, debt consolidation is one thing people may be able to use to lower their interest rate payments. Doing so could make a consumer's credit card debt more manageable.
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