Atlanta Credit Users Can Lower Credit Card Fees with New Fed Laws

If credit card fees have been eating into your paycheck, you're about to get another break.

On Tuesday, the Fed adopted yet another set of credit card limitations. This round of laws limits credit card late fees to $25 and keeps creditors from charging a penalty larger than the charge that caused the violation - for instance, instead of slapping you with a $30 fee for going over your credit limit by just $5, you won't have to pay more than five bucks. Nor will banks be able to charge more than one fee per violation. And - my favorite - no more inactivity fees (seriously, how is it fair to penalize someone for choosing not to spend money?).

But despite all the positive changes, the new rules still won't get to the root of most folks' credit card problems when they go into effect in August.

Sure, when you're paying high fees left and right, you're going to save money when Uncle Sam steps in and lowers them. But you're still going to paying fees, albeit smaller ones. You'll still damage your credit every time you make a late payment or go over your credit limit. You'll still be in hot water if you repeatedly use credit to spend more than you earn - and more than you can afford to pay off.

For folks without credit card debt, the new rules are a relief. But that's not most of us. Most of us have thousands of dollars in debt. And these new rules don't address the reason for our debt burdens - the fact that we're stuck in the credit card trap. Our bills are so high that we have to keep putting our monthly expenses on plastic - and since we only make the minimum payment, or enough to cover interest, our balance just keeps growing and growing.

Uncle Sam's latest law isn't enough to eliminate debt on its own. But there's another legal action that can - bankruptcy. It's a little known fact that eliminating your debts through bankruptcy is your right courtesy of the U.S. Constitution. Not only that, but it's the most effective way to break free from debts and to stop foreclosure. If you're drowning in credit card debt, find out if bankruptcy can get you afloat by signing up for a free personal debt analysis with an Atlanta bankruptcy attorney.

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