Consumers in Chicago Could See Limited Credit Card Fees If New Law Is Passed
It seems like just yesterday that a round of credit card reform laws was enacted (well, actually it was just last month). But the Federal Reserve already has another idea to help consumers.
If passed, a proposed law will limit credit card fees by prohibiting your credit issuer from charging you more than your violation. So if you exceed your credit limit by $5, then you'll owe $5 - instead of the $40 they currently charge. Credit card companies would be banned from charging more than one fee for the same violation and inactivity fees - penalties levied for not using an account - would be eliminated.
Pretty cool, huh? But here's the catch. To benefit, you have to use less credit. And for some folks, filing for bankruptcy is the best way to reduce dependence on credit cards - and therefore lower debt.
Proposed legislation has the power to protect cardholders from being charged big fees for small transgressions. But if you're $100 - or more - over your limit, you're still going to get charged the same penalty you get charged now. Same goes for if you're late on a $500 payment versus a $5 one.
If you want to take advantage of lower fees, maybe this is the excuse you need to finally lower your debt and take back control of your financial life. The simple solution is to lay off the credit card and start paying more than the minimum on your bills each month. Pretty soon, you'll see a smaller balance and less interest. Eventually, your payments will shrink and you'll have extra money in your pocket each month.
But if that's easier said than done, bankruptcy might be just the boost you need. Filing for bankruptcy can help you lower - and even discharge - debt based on your individual situation. To get an idea of how bankruptcy can make debt relief more manageable, why not try out a free one-on-one debt analysis with a professional Chicago bankruptcy attorney? When you get rid of debt, you won't need to worry about fees and penalties - you'll be too busy enjoying your financial freedom.