Credit card companies are frantically taking drastic actions in their attempt to “work around” the new credit card legislation that will restrict their ability to randomly raise interest rates and hit credit card consumers with surprise fees added to their credit card debt . Already credit card consumers are beginning to scream foul. An article in the NJ featured a distraught credit card consumer whose monthly minimum payment has literally doubled.The article said:
“Like other credit card users, Avi Frisch got an offending note from his bank in recent weeks.
His minimum monthly payment — usually $250 — was being jacked up to $575, the letter said, though he wouldn’t say which bank sent it. “I was annoyed because it was basically saying, ‘We made a bad deal, so we’re going to take more money from you,’ ” said Frisch, 29, a Paramus-based attorney who said he always pays his credit card bill on time and maintains a good credit score.”
And hiking up minimum monthly payments aren’t the only tricks in the credit card industry’s proverbial hat; many credit card lenders are already raising interest rates and fees before the new law becomes effective. They are also changing consumer’s credit card accounts from fixed rate to variable rate. Unfortunately for those credit card consumers who are switched to their new and “improved” variable rate accounts, those new accounts may soon see interest rate hikes as the low interest rate “honeymoon” comes to a dreaded end. Well-behaved debtors who pay their credit cards on time every month and never pay any interest are not being spared by many credit card companies. Many “inactive” credit card consumers with no balance are facing account closure or significantly reduced credit lines.
For those debtors with hefty credit card balances, now may be the best time to reduce your debt. The credit card industry is doing everything in its power to get as much money out of debtors as soon as possible which can cause financially strain for those already struggling to pay their bills. Remember, bankruptcy allows your discharge credit card debt or repay it under reasonable terms in three to five years. A qualified bankruptcy attorney can help you find out if bankruptcy is the best option for your financial situation.