What the New Credit Card Laws Mean To You

It’s time for a credit-card reality check, Nesties. This week, the Federal Reserve rolls out its new set of credit card laws, with regulations geared toward protecting consumers and increasing debt awareness. The new regulations require card companies to do things like, um, actually give you notice before hiking up fees. We say, it’s about time.

From here on out, your new and improved credit card bill will spell out your debt in black and white, explaining exactly how long it will take you to pay off your balance if you fork over only the minimum payment each month. According to the Feds, if you make a $90 minimum payment on a $3,000 balance, it will take you 11 years (and cost you an extra $1,745) to pay off your plastic. Yikes!

Other new regulations include requiring credit card companies to give you a 45-day warning if they’re going to increase your interest rate, adjust certain fees, or make other major changes. Plus, they have to issue your statement at least 21 days before its due, and restrict transactions that might take you over your credit limit.  

The changes are expected to save American consumers billions (yes, billions) of dollars every year — do you think they will change the way you handle the bills in your nest? Join the discussion below.

The Nest

Advertisements