Christian Debt Recovery

Credit Card Debt Obama Plan

May 22nd, 2011 |

Author: Gavin

Credit card debts – How to make your life easier

This year America has heard a lot of news regarding a credit card reform; new rules have been officially put in place and approved by their president Barack Obama. The main idea is to slow down the debt crisis and stop credit card providers from over charging customers, it will also make it harder for people to apply for too many cards and overspend on their current accounts. Credit cards have become a necessity in our modern societies and they are needed to make various different purchases online or in high street shops; try booking an airline ticket at a standard retail price without a credit card, it’s not possible, or you’re forced to pay a middle man fee.

Apparently the average American citizen has on average 2 – 3 credit cards per person, if you add up the credit limit amount it adds up to quite a lot of money. Though the rules have changed in the U.S. the over zealous spending habits also apply to other developed countries in Europe. Having several credit cards can put you in a difficult situation, managing payments can fall out of control and you may end up building up a mountain of debt.

If you are in this situation, don’t worry you’re not alone and there are a few things that you can do to help keep the situation in your hands and get you on the way to being debt free.

1: Combine your cards into one account – It may sound illogical, but the first thing to do is search for a new credit card provider that offers low interest on balance transfers and consolidate all of your balances into one. With all of the finances in one place it will be easier to manage paying back what you owe. Do a little research and compare balance transfer offers from different companies; 0% BTR may sound great, but this is always unfixed for an introductory period that tends to be no more than a maximum of 13 months. A better bet would be to find a low fixed BTR% with no fee on balance transfers. One account that offers a very good deal is MBNA low rate American Express card, it offers a fixed balance transfer rate of 6.7% with no fee and you can apply online and get instant approval, so if you’re accepted they will tell you in a matter of minutes.

2: Change the monthly payback dates – If you have not been approved by a new low BTR and cannot consolidate all of your balances into one card then you have to bite the bullet and organize your payback plan better. If you have several cards then the chances are you have a vague idea of the payment due days; you may be being charged as a result. Write down the exact days for all of them and phone the credit card companies and ask them to change the days. Having the payments on the same day will make the whole process much easier for you to handle.

3: Make payments over the internet – It is so much faster, easier and more reliable to pay your credit card balances off over the internet. In this way you’re not left worrying whether the letter you posted made it on time or you don’t have to run down to the bank and stand in several lines every month.

About the Author

Peter Carville is a freelance article writer who writes for Financial Facts about the current financial news and the credit crunch.