What Credit Card Reform Means for You (and Your Debt)

According to what I have read online, the New credit card legislation aim is to protect consumers. Now, we need to find out how the rules apply and tactics we should still watch for. At the end of the day, with or without the new regulations, we are still in debt. And creditors will continue to make a hefty profit--they'll just do it in different ways.

The Pros:
There really are benefits to the new legislation. Here are a few of the highlights:

1. Minimum payment warnings.
2. New restrictions on interest rates for existing balances.
3. Notice of rate increases and fees for new charges.
4. Standardized billing procedures.
5. No more automatic overdraft protection.
6. Tougher qualifications for people under 21.

The Cons:
There are a lot of things that aren't covered in the new legislation:

1. No restrictions on fees.
2. New customers and new purchases aren't as protected.
3. There are a lot of exceptions to the new rules.
4. Legislation doesn't cover prepaid cards or payday loans.

The Reality of Debt:
There's no overnight fix when it comes credit card debt. While the new legislation will help you avoid some nasty extra fees and surprises, you'll still have to do your part to get out of debt (and stay there).