NEW Credit Card Rules You Should Know About

Do you keep a running balance on your credit cards? Though we all know that spending more than we make is a bad habit, doing it with "plastic" is so easy compared to borrowing from friends or the bank.

To help the consumer cope with credit card companies and credit card debt, the U.S. government has signed into law the Cardholders Bill of Rights - HR627.

For a complete summary of the bill's provisions, see our tutorial New Credit Card Reform - "The Credit Cardholder Bill of Rights."

One of the best features of the bill for all cardholders is the credit card due date must be at least 21 days from the date the bill was sent out by the credit card company. (Previously, it was 14 days.)

Other rules stipulate how and when credit card companies can raise rates and fees, and restrictions on marketing cards to minors and college students.

One provision of the bill is designed to help us realize how crippling credit card debt is. Credit card companies must now disclose on statements:

• how long it will take us to pay off the outstanding balance if we pay the minimum amount each month
• the total cost of paying off the outstanding balance in 12, 24, and 36 months
• a toll-free telephone number for information on credit card counseling and debt management services

There are definitely situations where accumulating credit card debt is unavoidable, but one should do everything in their power to pay off their credit card balance every month.

However, according to industry analysts, the majority of credit card debt incurred today is not for necessities like food and clothing, but for items and services that we want rather than absolutely need.

We encourage you to read Your Credit Report and Getting Your Free Copy! and review your credit reports on an annual basis - you get one free per year. We also have a tutorial on our main website that discusses your Credit Score.

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