This article explains a few things about credit card, and if you're interested, then this is worth reading, because you can never tell what you don't know.

Credit card companies have a number of tricks and traps for the unwary card-user. Late fees and interest rate hikes are only the tip of the iceberg. Recently, however, the president signed new legislation in regards to credit cards, specifically billing fees and interest rate spikes. This means big changes for those who own and use them will be taking place throughout the coming year. So, in the interest of keeping informed, let's take a look at the new credit card rules and what they can mean for you.

Forty-Five Days
First off, credit card companies will now have to give cardholders forty-five days notice before their interest rates are raised. In addition, card-users must also be notified of any other changes of terms, including rewards points programs. What this means is that the days of sudden surprise increases in interest fees are over. Credit companies can still raise their interest rates, but they must give roughly two months notice to those affected by such an increase first. This may not matter much if you're good at keeping things paid down, but it will help immensely if an interest increase means you'll need to change your monthly budget.

Twenty-One Days
Next, banks that supply the funds for your credit card must send out your monthly billing statement no later than twenty-one days before it's due. Late bills are always a pain in the posterior region, and it's a common trick for a credit card company to pull, sadly. A few late bills and-BOOM-you're in debt thanks to punitive late fees. Now, however, banks are legally obligated to get your bill to you on time, every time. It makes a lot of difference, trust me.

Late Fees
Speaking of late fees, thanks to the new legislation, if you get your payment in by five PM on the due date, it's in and you can incur no late payment penalties. No more early morning deadlines (another credit card company trick, and one that a lot of people have fallen for without realizing it) or late fees due to banking weekend or holiday hours. That means if your due date is on a Sunday, and your payment doesn't go through until Monday, you won't be penalized.

Sometimes the most important aspects of a subject are not immediately obvious. Keep reading to get the complete picture.

Highest Interest First
When paying different balances on the same card-cash advance and credit, for instance-the credit card company will now have to apply your payment to the balance with the highest interest, as opposed to whichever they fancy. And speaking of cash advances, banks will now require your express permission to allow you to go over your credit limit.

These are only the biggest changes to the way credit card services now work, thanks to the new legislation. All in all, the changes will make it harder for the credit card company to hinder you in paying off or paying down your accrued debt - your credit card costs should be less. However, this doesn't mean that you're in the free and clear. You'll still need to pay on time, every month if you intend to clear your debts. But the new credit rules will make it somewhat easier from now on, which is a nice change of pace.

About the Author:
Ken Muller is a Credit Card Debt enthusiast. For more great tips and advice on credit card costs, visit http://www.allaboutcreditcarddebt.com.

Article Source: http://EzineArticles.com/?expert=Ken_Muller

That's how things stand right now. Keep in mind that any subject can change over time, so be sure you keep up with the latest news.

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The following article covers a topic that has recently moved to center stage--at least it seems that way. If you've been thinking you need to know more about it, here's your opportunity.

While we all strive to be debt-free, the reality is that most people in modern society have credit card debt. It happens for many reasons, often beginning slowly and insidiously increasing until we feel we are under a mountain of debt. Perhaps we borrowed for 'good' reasons, such as to help with school or moving expenses, or perhaps the expenses were justified so long ago or so often that we honestly don't remember anymore.

Sometimes we feel we can handle it, and congratulate ourselves for paying more than the minimum every month. The truth is, however, that unless you are paying off your credit card debt IN FULL every month, you are racking up debt - putting your hard-earned, after-tax dollars into someone else's pocket, causing your original purchases or relief to cost you potentially many times over the original amount over the years. Money that could and should be earning interest FOR you is, instead, a lovely and healthy asset for someone else.

At this point in the debt cycle, many people feel overwhelmed and do one of several crazy things: they begin spending MORE, feeling things are hopeless and why bother worrying about it; they stop caring or get in over their heads and begin missing payments; or they consider bankruptcy.

Warning! All of the above options may feel good in the moment, but all have disastrous effects on your credit rating, which, even if you don't care about it now, will indeed cause you to feel regret and remorse when the consequences hit home some day in the future. Instead, consider the following to stave off disaster while you re-group and form a proper plan to get yourself through, and hopefully to put yourself firmly on the road to financial health and even independence:

TIP #1: Speak to your banking institution/s. Honesty and open communication is the best policy here, as getting to know a friendly face at your bank can make all the difference in how your accounts are handled. Considering debt consolidation? Start with your bank, for a couple of good reasons: your bank is a known, trusted entity (even if you don't agree with all their service charges), and may offer you lower rates because of your existing customer status. Also, a loan from a bank actually improves your credit rating, whilst a similar loan from a debt consolidation company can actually have the opposite effect in some cases.

You may not consider everything you just read to be crucial information about credit card interest rates. But don't be surprised if you find yourself recalling and using this very information in the next few days.

TIP #2: Call your credit card companies, again with the goal of keeping open communication. Speak with as many people as you have to in order to negotiate either a lower interest rate, lower minimum payments for a set time, or some other compromise. Remain calm and professional, and remind them that you wish to continue fulfilling your obligation. You may also ask them for any ideas they may have, such as alternate cards with less frills but an accompanying lower interest rate.

TIP #3: Consider credit counselling, but only from reputable providers. Many companies in this line of business actually take shameful advantage of the desperation of their clients and pull some not-so-funny tricks. Try your bank for referrals of above-board credit counselling - they may even offer in-house help in sorting out your difficulties. You are not the first nor the last to be going through tough economic times, and most banking institutions are deeply concerned as well. Many are making efforts to comfort and help their customers and to ensure both the customers - and the banks themselves - will be around and in healthy financial condition for years to come.

Above all, remember that you are not alone and do not panic. People make strange financial decisions when they are afraid or overwhelmed, and once the air clears they may regret actions they cannot undo. Your thoughts are very powerful, and can deeply affect your behaviour and decisions about all things financial. For an enlightening look at how your mindset affects your finances - and how to improve what is called your 'financial mindset' - along with bonus material which deals with keeping your peace of mind during these turbulent times, improving your credit rating and more, you may find the popular 30 Days to Wealth program a valuable tool (this is now available in instantly downloadable e-book format for those who do not have access to or time for the course).

Shauna Arthurs is an author and creator of a network of websites and blogs, specializing in helping people define and articulate their dreams, and take the steps necessary to achieve them. Whether it is financial independence or a career that satisfies you and brings you joy, Shauna's experience and resources are here to help! Enjoy more information at Live-With-Power.com and IncreasingVelocity.com.

Article Source: http://EzineArticles.com/?expert=Shauna_Arthurs

So now you know a little bit about credit card interest rates. Even if you don't know everything, you've done something worthwhile: you've expanded your knowledge.

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