| It is no longer possible to use a credit card and | | | | suggested a seven- to 10-year payback. That |
| carry the balance forever without paying it off! | | | | proposal has now taken effect. |
| By the way...that is good news! | | | | In addition, the bankruptcy law changes that took |
| The bad news is that your minimum payments, | | | | place in October 2005 eliminating for many the |
| that you may have been struggling to pay, have | | | | opportunity to declare Chapter 7 will make it |
| gone up...and in some cases doubled! | | | | harder to get out of repaying credit card debt. |
| While it has been reported that all credit card | | | | If you find yourself having a difficult time making |
| companies are doubling the minimum payment, | | | | the new minimum payments, one of the things |
| this is not necessarily accurate. However there | | | | that you can do is to seek a legitimate credit |
| are a few reported cases like MBNA, Bank of | | | | counseling service. |
| America and Citibank who have announced that | | | | Many of the best credit counseling agencies |
| they are moving from 2% to 4%, but not all | | | | charge little or nothing to help you work out a |
| credit card companies have to follow that | | | | budget that will allow you to make your |
| formula...but they do need to increase the | | | | payments. If it turns out that you can't make the |
| minimum so that people do eventually pay off | | | | new payment and you do decide to enter a |
| their balances. | | | | debt-management plan, your interest rates will |
| Let's start with why this has occurred: | | | | likely be reduced, thus you will spend less to |
| The Office of the Comptroller of the Currency | | | | repay the debt including the nominal monthly |
| regulates national banks and is worried that many | | | | charge by the counseling service. |
| people have credit card balances that will take | | | | Before you miss making payments be sure to |
| almost forever to repay. In 2005, The OCC, | | | | contact your creditors to explain the problem and |
| Board of Governors of the Federal Reserve | | | | request an opportunity to create a sensible |
| System, Federal Deposit Insurance Corporation | | | | payment plan that you can stick to. This will |
| and Office of Thrift Supervision proposed that | | | | prevent your credit from being ruined and getting |
| credit card companies create reasonable periods | | | | calls from the collection companies. |
| for paying back credit card balances. They | | | | |