Debt Consolidation Dodges New Credit Card Law

Feb. 16, 2010 - PRLog -- New regulations are being finalized and you’ll want to take your current account terms and conditions into consideration. A lot of creditor terms have changed in the last few months so it is important to be aware of what to beware of.

Take these five tips to keep your financial health in good condition and avoid the fever of February 22nd.

ONE. Don’t apply for new credit until March 1st. Let Feb 22 pass, allow creditors to get all their fancy new terms and conditions into place and go from there. New accounts will be protected from interest rate increases for the first year open. Good credit consumers can still get a deal on a credit card; it will just be a harder find.

TWO. Not that I encourage robbing Peter to pay Paul, but this may be the time to consider balance transfers. If you are consistent with your payments and follow your due dates from the dotted i to crossing the T, balances transfers may be a viable option for you to move high interest rate credit debt to lower rated cards. Make sure you read the T and Cs on balance transfers before executing. You will want to note how long the transfer rate will last, what the rate will be when the promotional plan ends, and what default repercussions you may incur should you miss a payment.

THREE. Keep an emergency card handy, one you do not use on regular purchases. Check your creditor terms though as some creditors are now issuing an –inactivity- charge for people not using the card.

FOUR. Make minor purchases with the cards you carry and try and pay off that monthly balance each month along with anything additional to the outstanding balance. This will help you avoid inactivity fees and the possibility of a creditor closing your account for not using it.

FIVE. Credit is no longer for kids- directly anyway. College kids will now require a co-signer of someone 21 years of age or older if they are not themselves. The young adult may also be required to show proof of the ability to pay the debt. Taxable income- allowances not included, sorry. If you are not of age you will need to find someone who is. Lean on a relative or friend you can trust to co-sign. Their credit rating will be on the line so make sure it is someone solid in your life.

No matter the disguise, consumer treats always come with creditor tricks. The new Credit Card Act was to be put in place to help protect consumers but it unfortunately will also further enable big banks to create new rules and fees to follow. A debt consolidation plan will allow you to keep one account open for emergencies and consolidate your other accounts to help you get out of debt faster and at a much lower cost. With a non-profit agency, your creditors reduce their finance charges to fixed rates, stop late and past due fees and usually accept a lower monthly payment. This enables consumers to not only pay off their debt at a faster rate, but to also help build a better credit score by ensuring timely monthly payments and paying down their balances faster.

The credit game was not designed for the consumer to win. If you are ready to call it quits and consolidate your debt call one of our certified credit counselors today for a free confidential consultation. Our BBB rated A+ service has helped thousands of consumers get out of debt and build a better credit score. Visit our website freedomdm.org or call 800.905.1563 for a free quote.

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Certified credit counselors work with potential clients to assess their current financial situation and determine what their best option may be.