Chicago Credit Card Holders Can Benefit From New Late Fee Rules
Uncle Sam is really laying into credit card companies lately - and I'm not complaining.
On Tuesday, just months after the latest Credit CARD Act rules went into effect, the Federal Reserve adopted a new set of credit card laws. This time, they're limiting late fees to $25 (instead of the $30-plus penalties many of us are accustomed to paying) and banning banks from charging a fee higher than the violation with which it's associated. They'll also put a stop to inactivity fees - in other words, charges for not spending money with your card - and multiple fees for the same violation.
But here's what the new credit card rules - which go into effect this August - won't do.
They won't pay your bills for you. They won't remind you that you're approaching your payment deadline. They won't keep you from charging more on your credit card than you can afford to pay off. And though new laws might limit the amount of interest banks can charge, they sure as heck won't eliminate it.
My point is, every little bit helps, but laws don't solve everything - especially if you're already in a financial pickle. If you've got so much credit card debt that you're constantly making late payments and paying just the minimum, the government is not going to be able to fix your finances - you've got to put the effort in yourself.
That said, Uncle Sam has provided you with the tools to take care of credit card debt - bankruptcy. Believe it or not, eliminating debt through bankruptcy is your legal right as a U.S. citizen. And when you file for Chapter 13 bankruptcy, your assets will be legally protected as well. If new credit card rules aren't enough to get you out of debt, find out what will when you sign up for a completely free personal debt analysis with a Chicago bankruptcy attorney.