Newport Beach, CA (PRWEB) March 31, 2013
DebtConsolidationTrust.com - a trusted financial resource in the credit and debt consolidation industry has announced that Federal regulators have been pressuring major credit card companies to increase the current minimum credit card payments from 2% to 4% of the total outstanding balances. The regulators argue that taking such a step would help consumers get out of debt sooner and hence reduce their overall interest charges.
DebtConsolidationTrust.com has detailed debt reduction and financial consulting plans available through their website. They claim that while 40% of all Americans pay their credit card balance in full every month, the other 60% are barely able to make the minimum payment. These experts argue that such an increase in the minimum payment would be too harsh on the majority of credit card holders.
The credit industry is set up in such a way that it allows consumers to spend beyond what they earn. This methodology and spending patterns have put Americans at greater debt risk and the statistics prove that point. According to the credit industry experts, an average household owes more than $10,000 in credit card debt alone.
The new regulation will force credit card companies to play a greater role in assisting their consumers in overcoming their debt problems by being more assertive. The federal regulators believe that increasing the minimum amount would help consumers liberate themselves from the endless vortex of debt.
Many experts argue that forcing people to pay inflated minimum payments will further damage their financial well-being. Already, most of the consumers work two jobs or overtime to pay off their bills and almost all of them are in no condition to allocate extra cash towards their minimum credit card payments. Credit experts also believe that many consumers who are unable to come up with the extra cash will be heavily fined with late fees and other penalties, which would lead to additional financial woes for the consumers.
Debtconsolidationtrust.com is a California-based company advising consumers on how to best handle their debts. Customers who often fall behind on their payments should obtain professional assistance from personal finance experts such as Debtconsolidationtrust.com; they are created to provide these services to consumers who are currently experiencing high debt and interest charges.
For more information on this topic, visit http://www.Debtconsolidationtrust.com