… to an article in the Star-Telegram, banks that are losing profits because of the new credit card legislation are now looking to debit cards and bank accounts to make up the difference.  The recently passed credit card legislation requires that banks give customers a choice on whether they want to opt into over-draft programs that can be costly.

The article said:

“That law only applies to credit cards, but lawmakers are now shifting their sights to debit cards. Last week, Sen. …

Category: Credit Card Negotiation , Economy

Tags: Bank of America Christopher Dodd Credit card Debit card Overdraft

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… consumers are choosing prepaid credit cards over traditional bank accounts and unsecured credit card accounts.

How It Works

The consumer buys a prepaid credit card from a retailer, loads it with money and sometimes even creates a direct deposit account with their employer. The cards are used to pay bills and everyday expenses–just like a debit or credit card.  The biggest draw of the prepaid cards?  No Credit Check! Because many consumers’ credit reports have serious dings due …

Category: Credit Card Negotiation , Credit and Bankruptcy

Tags: Credit card Debit card Pre-Paid

Credit card companies are frantically taking drastic actions in their attempt to “work around” the new credit card legislation that will restrict their ability to randomly raise interest rates and hit credit card consumers with surprise fees.  Already credit card consumers are beginning to scream foul. An article in the NJ featured a distraught credit card consumer whose monthly minimum payment has …

Comment by Jacob Decker: … not owe any credit card debt? Allmand & Lee can make …

Category: Credit Card Negotiation , Credit Counseling , Credit Crisis

Tags: Credit card Debt Money Management Personal Finance

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… shop at gourmet grocery stores and stock up on other non-essential items all paid with their debit card, within the 60 days prior to filing bankruptcy.

Buying expensive, non-essential items with your debit card before filing bankruptcy leaves a paper trail that may lead the bankruptcy court to dismiss your case. If you’re planning to file for bankruptcy and have a habit of purchasing expensive, non-essential items on your debit card, you need to stop BEFORE you file bankruptcy. If …

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The new Credit Card Act which requires credit card companies to disclose how much a debtor needs to pay each month to pay off their balance clean within three years, and how long it would take them to be debt free if only minimum payments are made may not effectively reach debtors who bank online or pay their credit card bill through automatic electronic payment.  Debtors who bank online and forgo credit card …

Category: Credit Card Negotiation , Credit Counseling , Credit Crisis , Economy , Managing Your Finances

Tags: Credit card Debt online banking

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After the passing of the Credit Card Act, which will restrict credit card companies’ ability to increase interest rates, amongst other things, the credit card industry took decisive action to soften the blow to their profits. Below are some of the changes you may see on your credit card in 2010:

An annual fee.  Since the Credit Card Act was passed, about 43 percent of new credit card offers contained annual fees, which …

Category: Credit Card Negotiation , Credit Counseling , Credit Crisis , Economy

Tags: Credit card Credit Card Act fees repayment

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Making a late payment on your credit card has always carried a heavy penalty.  Most prime credit card issuers will dramatically increase a debtor’s interest rate for one missed payment.  The penalty interest rate is typically called the “default rate.”  The average default rate for credit card issuers is 27.88 percent, and more than half of credit card issuers have a default rate that is much higher.  But after the …

Category: Credit Card Negotiation , Credit Counseling

Tags: Credit Card Act default rate penalty

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Since the passage of the Credit Card Act, many credit card lenders have been dreaming up new ways of getting more money out your pockets.  One of the newest tricks on the block is the infamous “inactivity fee.”  Inactivity fees were at one point commonplace for credit cards; but eventually fell out of fashion.  But at least with some credit cards, the inactivity fee could make it comeback.   How does it work? It’s …

Category: Credit Card Negotiation , Economy , Loans / Mortgages

Tags: Credit Card Act credit cards FICO Inactivity Fees

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… year before, an 11 percent increase. About $5,000 of the increase was from donors using credit or debit cards at the kettles. Anecdotal evidence indicates people who stop to make credit or debit donations make larger gifts, at least a few dollars.

But I say skip the plastic and bring cash instead. Here’s why:

While giving to charity is important and noble, even charitable giving should be budgeted. When you choose to use a credit card for donations, you may end up giving …

Tags: Credit card dallas Salvation Army

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The shopping season is approaching and many consumers are choosing to use their debit cards instead of a credit card this Christmas season. But despite their apparent safety, there are a few precautions you need to take to make sure that you don’t end up in debt despite avoiding credit cards this Christmas.

Keep close track of your spending. While debit cards are a lot better than credit cards in terms of avoiding interest, fees and debt that you need to repay, debit …

Tags: Christmas Debit Cards Overdraft

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… been living in seclusion these past couple of months you’ve probably heard about the new credit card legislation that will prohibit or limit several of credit card billing practices that are unfair or difficult for consumers to understand.  But let’s take a closer look at one of the most important changes you will see on your credit card next year:

The prohibition against “universal cross-default.” Before the passage of the Credit Cardholder’s Bill of Rights, credit card …

Category: Credit Card Negotiation , Credit Counseling

Tags: Credit card Personal Finance Universal default

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According to an article in the Market Watch, credit card consumers are launching a massive, but silent revolt against credit card companies in response to higher interest rates, outrageous fees and unwarranted cuts to their credit limits.

The article said:

“…consumers cut $11.98 billion in borrowing in August, trimming their outstanding debt to $2.46 trillion, representing a 5.8% annual rate of decline and deeper than economists had …

Tags: Consumer Reports Credit card Debt Interest rate

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