New Credit Card Rules
The new credit card rules go into effect today. They’re aimed at making using and paying down plastic a little easier. But there’s one one part of the new rules that’ll be an eye-opening reality check for us.
Sometimes we don’t really want to know the truth… because it’s painful. Right there in black and white is the math you’ve been avoiding. By law, your bank must now spell out how long it’ll take to pay off your card.
The Consumer Union’s Pamela Banks says, “What it means for consumers is that they will have the information they need in order to better manage their credit card.”
But the information can still hurt. Here’s an example from the Federal Reserve: Let’s say your balance is around $3000 at about 14% interest. With the minimum monthly payment of $90, it’ll take nearly a decade.
Painful indeed, but here’s the encouraging news. From same example, now add just $13 to that minimum monthly payment. The debt would be paid off in three years instead of 12.
Consumer Credit Counseling‘s Margo Mitchell told me, “It’s your money. The new credit card rules will help you take control of it.”
Sometimes we need a little reality check, even if it’s painful, to give us a wake-up call.