Digital News Report – A recent report from Accelerated Debt Consolidation Inc indicates that new credit card rules will motivate consumers “to start seeking debt relief sooner.”
Banks now have to disclose their rate increases earlier than before. In addition, they will have to give an example how long it will take to pay off the loans. Jim Young, a representative for the company says this is a good thing for his company. For years they have been hoping for something like this.
The new rules could be bad news for the consumer though. Credit card consolidation may be the solution to those suffering from an unbearable debt burden. Heather Best with the Subprime Blogger says that if you have several high interest credit cards you may want to consolidate these loans into one low interest obligation.
“By consolidating all of your credit card debt into one lump sum you will often find that you will get a lower overall interest rate because the loan amount is higher,” Best said.
With several credit card loans borrowers can lose track of when bills become due. Customers may be hit with late fees and over the limit fees.
Young says the new rules could benefit the debtor. “This creates several advantages for the consumer. If credit consumers begin contacting credit counseling and debt management agencies when they are only up to 30% of their credit limits”, Young said.
By: Tina Brown