The recent implication of credit card rules is great for the consumer. However, consumers need to be cautious with the existing credit cards they hold.
Los Angeles, CA (Vocus) September 8, 2010
Credit card fees are being cut, but borrowing rates are up, once again the consumer is hit where it hurts.
New credit card rules that have taken effect recently will limit the ability for banks to charge excessive fees. However, in the second quarter interest rates on existing cards has reached 14.7%, up from 13.5% a year earlier.
The Credit Card Accountability Responsibility and Disclosure Act of 2009 has given credit card issuers less flexibility to raise interest rates. Many Issuers argue that they are still dealing with a high number of delinquencies.
Morgan Drexen CEO Walter Ledda says, “The recent implication of credit card rules is great for the consumer. However, consumers need to be cautious with the existing credit cards they hold.”
Morgan Drexen works with attorneys throughout the nation that represent consumers with severe financial problems. They provide the automated legal software and back office support that allows these attorneys to be productive and co effective.
For many consumers credit card debt has made their lives unbearable. Stephanie Silver from Oregon was one such consumer. She entered a debt resolution program with The Howard|Nassiri Law Firm, who is supported by Morgan Drexen, Inc.
Stephanie had accrued more than $20,000 in debt using her credit cards. She used $15,000 from her 401 (k) but was still unable to catch up on her payments. Patricia Hagen also engaged with the Howard|Nassir Law Firm, “I had over $20,000 in debt from mostly credit cards. I had 4 credit cards. I would buy clothes and gifts for people.”
For many consumers with credit cards interest rates may rise, making the minimum payment for many families unobtainable.
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