Following our series on the new government enforced rules on borrowing, this post continues from the last one on credit card compay new rules. We’ve already discussed several good measures that will help keep debt down to a minimum and now here’s another bright idea to help the credit card population…
There are also new rules regarding your credit card repayments. Now you won’t be able to pay the standard minimum payment, which to be fair was a fraction of what you actually owed the credit card company. There are rules now in place that will expect you to pay a greater minimum payment in order to help you get your debts paid off quicker and more efficiently.
The other thing that is great about this, other than helping you pay off your debt quicker, is tha fact that having larger minimum payments is likely to prevent people spending too much money on their credit card, due simply to the minimum payment. This rule is likely to put in perspective the reality of your credit card spending before it becomes something you cannot pay!
But by far the most sensible factor about increasing these payments is that the minimum payment will be required to be at least more than the interest on the balance. This makes much more sense and doesn’t allow the credit card to spiral out of control. If you’re minimum payment is more than the interest then at least every payment is going off the balance of your credit card.