Warning: The Minimum Credit Card Payment Is About To Double

The event will surprise many- it is the Bankruptcy Abuse Prevention and Consumer Protection Act of 2005.

The new law has provisions that will affect every American with a credit card who has been making minimum payments in the past. This law, which has not received much press, will have the banks change the minimum payment requirements of 2 percent to 4 percent.

"The general public has not been calling to refinance or consolidate their credit card debt simply because they are not aware of the new law," said Vaughn Resper, senior mortgage consultant at Premier Mortgage Solutions Services, Inc., the upper Marlboro mortgage brokers that specialize in debt consolidation. "Those who have called were informed by their CPAs, attorneys and financial advisors to consolidate their credit card debt as soon as possible. We are preparing and bracing ourselves for the many calls we will get when the general public learns of this law."

Currently 92 percent of Americans carry five to six credit cards in their wallets and 55 percent have seven to eight cards. About 20 percent of credit card users are up to their limits and can't charge anymore. Those consumers will be forced to make larger payments. This is a form of banking insanity and this may force many consumers into bankruptcy after October 17, 2005.

However, the new bankruptcy law doesn't allow them to erase the charge card debt and requires them to pay it off during their lifetime which will have a long time affect on the economy.

Currently the average credit card debt per person is estimated at $8,652 and a minimum 2 percent payment will be $173.04. The new payment will be $346.08 and this will happen at a time when fuel prices are extremely high and interest rates are climbing.

Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 - truth is that most people filing bankruptcy are not trying to cheat the system. The average person filing earns a little over $22,000 a year and the majority have had a long period of unemployment before filing. Single and divorced mothers with children struggling to survive makeup a large percentage of the cases filed. This new revision of the Bankruptcy Law needs to be revised. However, in the meantime, Americans have to protect themselves.

Copyright © 2008, Eworldwire, Eworldwire
Copyright © 2008, NewsBlaze, Daily News

Tags: Credit, Card, Debt, Bankruptcy, Premier, Mortgage, Solutions, Abuse, Prevention,Consumer, Protection, Act of 2005, Finance, Business, Personal,,,

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