Get Out of Debt 101 Blog

Now that both the Senate and the House passed the bill, it is being sent to President Obama, who already said was going to approve it.

What will this law mean for us? Tens of millions of credit card users will have more time to pay their credit card bills and will also avoid retroactive interest rate increases on existing card balances, to start. They will be given greater advance notice of changes in credit card terms and less penalty fees, late charges and interest payments.

Note: The flip side of this last item is most likely the comeback of the yearly fees, since the credit card companies are already losing millions of dollars in easy money. You see, penalty fees, late charges and interest were all free money, since they didn’t have to do anything to earn it. It was theirs for the taking since they wrote their own rules. So now they have to find other ways to make their “easy” money, so be on the lookout.

Once in effect, the law will also fundamentally change the way credit card issuers market, bill and advertise credit cards. And no doubt the users will win, since they will be more protected than before. I am very happy to see this law go into effect.

Universal default is going away (finally!), those unanounced interest rate hikes will be a thing of the past (about time), we will have more time to pay our bills, the highest interest rate balances will be paid first… and the list goes on and on. As I’m typing this, I can’t help but ask myself… there were SO many things that needed to be corrected (and this bill DOES NOT fix everything that is wrong, it’s only one step in the right direction) that I feel like NOBODY protected us in the last few years. The Banks literally, wrote their own rules.

But let’s not focus on the past, it’s already gone. Let’s focus on the present and the future. Let’s start getting rid of all the credit card debt we have, as soon as possible. The best way toget rid of credit card debt is with the Get Out of Debt 101 Master Manual. Go check it out now. For about the cost of two pizzas you can start your journey towards a debt-free life. And how valuable is that?

See you tomorrow!