New laws aimed at giving consumers more protection from unfair creditor tactics. However, will this actually stop consumers from racking up so much credit card debt? These new laws are going to be a good thing because they will better inform consumers as to what they are spending. It may not actually convince consumers to stop spending.
Credit Card Companies Inform Consumers Sooner
The new credit card laws merely require more advanced notice of any impending changes to your interest rate. It doesn’t stop credit card companies from raising your rates or slashing balances without your consent. Your credit card is going to cost you whatever the credit card company wants it to cost regardless of the new laws.
Consumers Just Assume Credit Cards Are Free Money
Most consumers feel as if credit cards are free money. There is no real sense among many consumers that a credit card is actually an unsecured loan. This makes it unlikely that any amount of information given by credit card companies will actually cause people to stop using credit. Economic conditions may make it impossible to live on money from a savings account.
What Should Consumers Be Doing To Protect Themselves
Relying less on credit is a good way to avoid credit card debt. Budgeting for each credit purchase you make is also a good idea. Knowing where you can turn for help in the event of an uncontrollable debt can help you start to reel in that debt. Debt consolidation services are available to assist you with your finances. They can represent you in negotiations with your creditors.
Options For Credit Consolidation
A few options are available to you if you want to consolidate your credit debt. Consolidating your debt will lower your monthly payment to a more manageable level. Doing so can also get your creditors to finally stop calling you each day. Debt consolidation services can help you decide which is the best for you. Your options include:
Debt settlements allows you to pay only a fraction of what you owe. This payment can be made at once or over a period of time. Settling your debt will wipe that debt off your credit report as soon as all payments are made.
A credit counselor can help you find a credit card that offers the best rate for your credit situation. Transferring your balances to one card will help you organize your credit payments each month.
Home Equity Loan-
Home equity loans are great consolidation options for borrowers who have good credit. Use your home instead of trying to use a debt consolidation service to settle your debt. Using a home equity loan will keep your credit score intact.
The only thing that will lower credit card spending is a change in consumer attitude. Until then, we will not see anyone using their credit cards any less. Credit card companies are still in control when it comes to how much we pay to use their money.
Sheryl Fabia is a financial writer for NonProfitDebtConsolidationService.com. She writes articles on debt consolidation services, non profit debt relief and various financial matters and has them published across the web.