4 Credit CARD ACT Fact's That Every Cardholder Should Know About

What changes to Credit Cards are going into effect today? Keep reading today's article to find out.

1. The first of three phases of the Credit 'CARD Act' go into effect today.

Starting today, Credit Card Companies will have to send Consumers interest rate increases at least 45 day's in advance of the increase. Within the 45 day period, the Consumer can "opt-out" of the rate increase.

2. The is no limit to the amount of interest that can be charged on Credit Cards.

One of the down-sides to the Credit CARD ACT, is that there is no established 'Usury Limit'. Usury is just a fancy word for Interest. This means that the Credit Card Companies, can charge almost as much interest, as the Card Holding Consumer, will let the Card Company get away with.

That's why it's so important for Consumers to not fear engaging in combat with the Credit Card Companies for lower rates.

3. Fixed Interest Rates may be discontinued.

Debt Warriors sources report that Fixed Rate Credit Cards may be a thing of the past. Because of the Credit CARD ACT, many lenders are not offering any Fixed Rate Credit Cards. What this means is that every Credit Card holder should be concerned about their rates being raised.

4. Minimum Monthly Payments Are Being Raised.

For years the standard minimum monthly payment was about 2% of the total 'Outstanding Balance'. Not anymore! Credit Card Companies are now requiring at least a 5% minimum monthly payment.

Actually this is not that bad of a change. For years I have advocated for Card Holders to make bigger monthly payments. So I think making bigger payments is actually a good thing.

There are many other CARD ACT provisions that go into effect in February 2010. Feel free to subcribe for Debt Warriors email updates, listen to Debt Warriors Radio, or follow us on twitter.

--------------------------------------------------------
DEBT WARRIORS™ are not Attorneys. WE ARE experienced Credit Repair and Debt Management, Negotiation and Debt Settlement Coaches. WE teach American Debtors how to manage and settle their debt (for themselves). The information on this blog, should not be considered legal advice. Debt Warriors offer helpful Credit and Debt "Self-Help" video course, Personal Finance, and information products.

Thanks for stopping by THEWARONDEBT.NET
------------------------------------------------------