The Credit Card Minimum Payment Warning Act, which aims to accomplish exactly what the name suggests, has been in the works for a few years. It
recently gained the support of several consumer groups including the Consumer Federation of America and the Consumers Union, among others.
If passed, the act will require credit card companies to disclose information about the impact of making only the minimum payment. This
includes how long it will take to repay your credit card and the extra amount in interest you’ll pay when you make only the minimum payment. The
time can often be 20-30+ years, which is why the fat-cat bankers have been against disclosing this to consumers for so long. The longer they keep you
in debt, the more money they make!
I am a big supporter of this idea. Anything that allows us to make better decisions about paying our bills is wonderful. Whether or not the act passes
(and I hope it does), I want consumers to be more empowered to see these kinds of calculations.
You don’t have to be a math whiz to calculate the minimum-payment only impact; I do this for you in my debt plan analysis, which looks at your
current debt structure and shows how to eliminate it all at a much quicker pace. So until credit card companies are forced to give you this
information, you are aware of the extensive time it will take to pay your debt off using your current plan.
As we approach the summer months many unexpected things can come up; make sure you have a liquid side account set up to pay for these expenses so you are not stuck putting it on the plastic. If you already have 3-6 months of living expenses set aside, congrats. You are ahead of the majority of
American Families. If you need an updated analysis of your debt & finances give me a call or reply to this e-mail; I will be happy to show you some
ways to cut costs and eliminate all of your credit card debt so you can enjoy a financially stress-free summer time.