If you are the type of consumer that struggles from month to month just to meet your monthly minimum credit card payment, there is some bad news lurking on your horizon. By the end of late March, credit card companies are going to be almost doubling your monthly payments. This is all thanks to the Abuse Prevention and Consumer Protection Act of 2005, but if you look at it realistically, it was created with your best interests in mind.
Think about it… by increasing your monthly payments, you will also be forced to pay off your debt much faster than you would have otherwise. Of course, the downside to this is that many people can’t afford more than their monthly minimum, which will make owning a credit card unaffordable.
Now that you know what the end of March will bring, prepare for it. Figure out your finances and devise a plan that will allow you to keep your credit card and deal with the minimum increase. Remember, it’s best to always pay off the balance on your card each month and if you never charge more than you can afford, the new minimum won’t even matter.
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