Some great New Credit Card Rules were passed last year. Here's what you need to know:

In the old days (prior to 2-22-10) a credit card company could just increase your interest rate or other fees without letting you know.

Most consumers would just keep paying their minimum payments and not realize that of the $100 they paid, only $35-$40 was actually being applied towards the principal and the rest was interest and fees!

At this rate, it might take you the rest of your life (if you lived long enough!) to repay the original amount borrowed or charged.

With the New Credit Card Rules, the credit card company must send you a notice at least 45 days before they can:

• increase your interest rate
• change annual, cash advance or late fees
• make other significant changes to the terms of your card

You then have the option to cancel the card before the changes take effect. However, if you cancel your card, the credit card company may close the account and increase the monthly payment.

For example, they may require you to pay the balance off in five years.

They may also double the percentage of your balance used to calculate your minimum payment which will increase your monthly payment!

The credit card companies are now using a few "legal loop holes" to get around this new law and they do not have to send you a 45 day advance notice if:

• if your card has a variable interest rate tied to an index and the index goes up your rate will increase
• your "introductory rate" expires and jumps to the "real" rate
• your rate increases because you have made arrangements because of late payments 

Your monthly credit card bill will now include information on how long it will take you to pay off your balance if you only make the minimum payments.

It will state the current balance and the minumum payment due.

It will give you a LATE PAYMENT WARNING that says that if they do not receive the minimum payment by the date listed, you will have an additional $35 late fee charged and your APRs may be increase up to the PENALTY APR OF 28.99%!

Even though the new rules may inform you of how you are about to be taken advantage of, they really don't help that much.

If your credit card balances is so hight that you can only make the minimum payments, YOU NEED HELP!

For FREE ADVICE with NO OBLIGATION, CLICK HERE or call

1-877-492-4109

photo by: Andres Rueda