The average American currently has more than $8000 in credit card debt; which is up roughly 40% from the average household credit card debt in 1998. What this means is that consumers are relying more heavily on their credit cards to provide sustenance. With credit card debt on the rise, many credit card companies have jumped at the opportunity to take advantage of this debt.
Now that Congress has signed the Credit Card Act of 2009, consumers will have much more control over how their debt is managed and have a better chance at repaying their debts. Here are some of the new credit laws for consumers which are currently in effect as a result of the Credit Card Act of 2009:
Universal Debt
In the past, credit card companies were allowed to spontaneously raise the interest rate on a consumer if they fell behind on any other type of credit card debt, mortgage debt or utility debt. This phenomenon was known as universal debt. Universal debt gave credit card companies tremendous control over a consumer’s debt and made it very difficult for many consumers to stay in good standings with at least one of their creditors.
