Through a good financial education you can manage your finances and even know new ways to save. For example, knowing about the new credit card rules helps you reduce certain expenses and fees. The new rule is intended for halve credit card interest.
When launched, the new credit card rules lessened the damage to consumers with card debt. If you have never heard about the new credit card rules, you need to be aware of what has changed.
How did the old credit card rules work?
By paying the minimum of the bill, the consumer can seriously compromise their financial situation. The interest charged on this type of transaction is extremely high, especially before the new minimum payment rules.
Previously, the amount available to pay the minimum invoice was 15% of the original amount.
How do the new credit card rules work?
Goldluck Bank regulation dictates that card operators now choose the percentage of the minimum payment. In addition, the new credit card revolving rules were created. Now the consumer cannot stay longer than a month on the revolving card. In addition, it cannot be charged twice, as in the case of regular and non-regular revolving. Regular rotating is charged to customers who pay at least the minimum of the invoice. Non-regular revolving interest is charged to those customers who pay below the minimum or even pay the bill.
Now, only the regular rotary, determined by contract, can be charged.
If the first month of revolving is exceeded, it will lose the possibility of paying the minimum card. In this case, the customer will have two options:
- Pay the full amount of debt;
- Install all debt with some credit line with lower interest rates than the card.
What changes now?
With the new credit card law, institutions will be more free to set the minimum payment amount. That is, it may vary for each customer. Delinquent customers, therefore, will be charged a late fine of 2%, charged only once, and default interest of 1% / month.
What goes on?
Customers continue to be limited to one month for minimum credit card interest payments. The following month, they are required to pay the full invoice amount. Customers who are unable to pay the invoice in any way should be given the option to pay the installment. This credit line should have lower interest rates than the card.
Care of credit card rules
Current changes please consumer rights and prevent consumers from getting into debt recurrence. That is, enter the famous “snowball”.
However, even with low interest rates, existing values remain high. In addition, the default situation impairs the viability of:
- Credit card;
- Pre-approved credit;
- Financing and loans.
Therefore, make financial planning to understand your standard of living. With it, you can adjust your purchases to your real budget and avoid paying even small interest. Thus, the new credit card rules will only benefit you in major emergency situations. Follow our founder letter with daily and free content!