Feds Cracking Down on Credit Card Companies

Posted on May 2, 2008
Filed Under Business, Life Strategy, News & Views | Leave a Comment

Feds Cracking Down on Credit Card Companies.  The Federal Reserve plans to crack down on credit card issuers claiming that they charge too many hidden fees and raise interest rates on borrowers unfairly.

Two other regulators plan to follow suit, the U.S. Office of Thrift Supervision and the National Credit Union Administration. The time frame to put the new rulings in place is the end of 2008.
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My question is why did it take so long. Do you realize that you can faithfully pay your credit card bill but if for some reason you make a payment two days late your interest rate could rise 10% or more. If you think the Bankers are going to take this lying down then you are naive.

Here are my suggestions. Do not wait for any change to be legislated. If you have a credit card and they raise your rate unfairly then pay it off and refuse to do business with that company again. Let them pursue you – keep the power in your hands. If you owe a balance and can’t pay it off then shop for one with a lower rate and transfer the balance ASAP. Stop thinking like a victim and realize that you are the one who has the power.

Here is a two part strategy for regaining control of your finances and the same strategy can be used if your in good shape in this area.

1. Set a goal to increase your income by at least 25% but do not spend this money – use it to pay down your debt. How can you increase your income? The first idea is to get a part-time job or a better one then you have, but there are alternatives. I suggest you start your own business. I will be doing a series of articles soon to show you how to do business over the internet – this is a definite win/win situation. (DO NOT SEND MONEY TO PEOPLE WHO OFFER TO SHOW YOU HOW TO DO BUSINESS ON THE INTERNET. MOST OF THESE OFFERS ARE SCAMS BUT THERE ARE SOME REPUTABLE COMPANIES)

2. Stop charging for things that you can pay for now, and if you charge then pay the balance monthly. Even with increased income, you will not get out of the hole if you keep charging new things.

I know this solution might seem simplistic but the real key is to increase your income and stop using your charge cards unless you pay the balance in full each month.

Let me leave you with these thoughts. There are two primary factors that determine what kind of financial challenges you might face. One is an external factor and the other is definitely internal.

Proverbs 29:4 By justice a king gives a country stability, but one
who is greedy for bribes tears it down.

Do not abdicate your power to vote. If you find that your elected officials are crooked then vote them out of office. If the people who work for them are crooked and they claim not to be aware of this fact then vote them out of office. Harry Truman said the buck stops here indicating that ignorance is no excuse. The kind of government you live under will definitely factor into your financial challenges.

The other factor is more directly under your control:

Proverbs 28:22 A stingy man is eager to get rich and is unaware that
poverty awaits him.

Determine today to be generous. Give of the little you have to help others and you will be blessed with more. This is a principle built into the Universe.

Till next time, Jim

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