About This Credit Card Directory
TPIF is a portal of credit card and loan offers applicable online. Browse through the offers, compare the terms and apply for the best one! Comparing credit card benefits are made easy here. It's very easy to locate the card that fits your needs more. Either you are looking for a Platinum credit card with the lowest Annual Percentage Rate (APR) or a credit card with reward points, you'll find it here.
Offers updated daily.
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Federal Regulators Pressure Credit Card Companies to Raise Minimum Payback Requirements
Federal regulators pressure credit card companies to raise minimum payback requirements.
(PRWEB) January 2, 2006 -- By the end of the year, consumers may likely see significant increases in the required minimum payments on their credit card statements as a result of new guidelines recently released by federal banking regulators. Although the increases may cause a temporary crunch for heavily indebted consumers, financial experts agree that the increased minimums are a sound long term policy.
Why Raise the Minimums?
Currently, the minimum credit card payback rates are set so low that most Americans can afford to carry significant credit card debt. While credit cards can be a useful means of defraying the costs of certain purchases, the ease and convenience of purchasing with plastic has enabled consumers to spend much more than they can actually afford, racking up huge credit card debts in the meantime. Unfortunately, paying only the monthly minimum can turn a big charge into a twenty year commitment that accumulates a staggering amount of interest over the life of the debt.
Today, the average American consumer carries $10,000 in credit card debt with an estimated 40 percent of these consumers carrying a balance from month to month. A consumer who faithfully pays only the required minimum of two percent on a $10,000 credit card balance at 13 percent interest would end up paying $11,450 in interest alone over the thirty three years it would take to pay off the debt. Recognizing that the current system has fostered a dangerous revolving debt cycle many consumers will never escape, federal regulators are pressuring banks to push consumers toward financial freedom. By doubling the minimum payment to approximately four percent of the balance, the same consumer could reduce his or her repayment period to 13 years and cut the interest paid to $3,664. MBNA, Citibank, and Bank of America have already instituted doubled minimums and more credit card companies are expected to follow suit by the end of the year or in early 2006.
Most financial experts agree the increased minimums are economically sensible because it will help consumers get out of debt much sooner by forcing them to pay off the interest, fees, and a portion of the balance each month. The newly raised minimums will also compel consumers to rethink what they can realistically afford instead of viewing purchases as a monthly expense, thus encouraging an overall decrease in out of control spending. This is the ideal scenario. However, there may be serious consequences for some.
For the most heavily indebted consumers who are already struggling to make their minimum credit card payments each month, this added burden may be the final breaking point that causes them to default on their payments. Credit card companies have anticipated this reality, allocating more of their 2006 budget to compensate for the expected losses from defaulting cardholders and charged off debt. When this default occurs, many consumers may consider filing bankruptcy. However, with the recently passed Bankruptcy Reform Act, that may not be a feasible solution either.
Reduce Debt and Avoid Bankruptcy
Consumers who are serious about getting out of debt do, however, have options. Knockout Debt, a nationally recognized debt arbitration company, has saved their clients millions of dollars in debt and interest. Experienced negotiators work directly with creditors to reach a settlement that cuts the principle by an average of 40 to 60 percent. Debt arbitration enables clients to pay off their debts quickly and combine their bills into one manageable monthly payment. Best of all, with debt arbitration, clients avoid bankruptcy and the negative effects filing for bankruptcy can have on their financial future.
About Knockout Debt
Knockout Debt is a professional debt arbitration company that specializes in helping heavily indebted consumers regain financial stability by negotiating a significant reduction of the consumer’s total principle debt. By utilizing experienced negotiators, long-standing relationships with creditors, and financial acumen, Knockout Debt designs customized debt reduction solutions that enable clients to lower their debt to income ratio without filing bankruptcy.
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Low APR credit cards are on the rise
Yes, low APR credit cards are on the rise. Many credit cards are competing for your business to give you the best and lowest rates available today. There are so many credit cards from you to choose from that they are doing all kinds of things to get your attention including lowering their interest rate and giving you no annual fees.
Why is this happening? Because there are so many credit card companies. They all want your business and this is an attractive incentive to get you to apply and own one of their credit cards. If you choose a low APR credit card over one with 19.99 percent you are sure to go with the lower APR.
The only problem is that sometime these 0% and low APR credit cards are only promotional ways to get you to apply and then later your interest rate will rise. Many credit card companies have low APR credit cards for a certain amount of time such as 3 months, 6 months and some up to one year. You will have to compare to find out which one keeps the lower APR after the promotional period to ensure you are getting the best deal around.
No matter what the reason low APR credit cards are here to stay as long as the companies are competing for your business. Just remember to compare everything they offer besides the lower interest rate. You may find that several credit card companies are now offering other wonderful incentives for you to apply with them such as reward programs.
No matter which company you choose, you will enjoy the low APR credit cards even if it is only for a limited time. You will be able to save money on your purchases because you will not have to pay any interest until the promotional period is over. Just be sure your balance is very low when the interest rate kicks in and you will be fine.
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