Post Credit CARD Act: New Credit Card Statements

Use Your New Credit Card Statements To Conquer Debt and Protect Your Rights

By Gerri Detweiler
The Union Credit Doctor

Thanks to the Credit CARD Act, your credit card billing statements now have a new look. In addition to larger type, you’ll also have more consumer protection tools at your fingertips. Use your new statements to: 

Get Out of Debt: You’ll now see the total cost and amount of time it will take to pay off your current balance if you just make minimum payments. You’ll also see the amount you’ll have to pay each month to be debt-free in three years or less, and you’ll get a summary of fees and interest you’ve paid year-to-date.

Strategy: If you can’t afford the payment required to get out of debt in three years, call a non-profit credit counseling agency and get an action plan to get out of debt. Union members should contact Union Plus Credit Counseling to take advantage of a free budgeting session and discounts on Debt Management Plans from one of the top non-profit agencies in the country. Visit UnionPlusDebtHelp.org or call 1-877-833-1745, anytime, day or night. 

Pay Off High-Rate Debt: Do you have balances at different rates on any of your credit cards? For example, does part of your balance carry a low interest rate from a balance transfer, while another part has a higher interest rate from purchases or cash advances? If so, any amount you pay above the minimum payment will now go toward the highest-rate portion of your balance first.

Strategy: Pay as much as you can above the minimum each month to wipe out your more expensive debt as quickly as possible.

Avoid Interest and Late Fees: Statements will be mailed at least 21 days before the due date. Payments will now be due on the same day each month, and cut-off times before 5 p.m. on the due date will no longer be allowed. All of these changes will help you get your payments in on time. You’ll also see a notice that will warn you how much your late fee will be if you miss a payment.

Strategy: Pay your balance in full, and as long as your card has a grace period, you won’t pay interest. (Note, some cash advance and balance transfers don’t off a grace period, even if your card offers one for purchases.)

Accept or Reject Changes: Your interest rate won’t go up unless you have a variable interest rate, a “teaser” (promotional) rate expires, or you fall behind at least 60 days on payments. If your issuer does change the terms on your credit card account, you’ll get 45 days advance notice, and have the opportunity to reject the changes and pay off the card under the old terms. (If you opt out, you won’t have to pay back the balance immediately, but your minimum payment could increase.)

Strategy: Look for a notice about changes to your account on your statements and in the mail sent by your credit card issuer, so you can decide whether to accept or reject the changes.
 

Take the Credit CARD Act Challenge

How much do you know about the new Credit CARD Act? Test your knowledge with this Credit Card Act quiz.

Union members can apply for the Union Plus Credit Card, one of the most consumer friendly credit cards in the nation.