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With credit card companies raising rates and fees, consumers may consider debt consolidation
01/23/2010
Credit card debt lenders are finding a number of ways to keep their profits up despite impending laws, which may leave consumers feeling the effects of fees on their wallets.
According to MarketWatch.com, many credit card companies are adding new fees in order to counteract some provisions of the Credit Card Accountability, Responsibility and Disclosure Act. Beginning in February, lenders will be limited on whether they can raise interest rates on credit card debt accounts.
In order to combat this and keep up their revenues, card companies may be putting annual fees on accounts that previously did not have them. They are also adding fees associated with consumers not using their cards.
"Not surprisingly, lenders are using fees as a main weapon," the report from MarketWatch's Chuck Jaffe said.
In the face of increasing interest rates and fees, many consumers may not be able to handle the amount of credit card debt they have, leaving them seeking ways to preserve their financial position. One option consumers may consider is debt consolidation, which may reduce the amount of interest they end up paying on their debt.
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