Timing is Everything
As we move closer and closer to the
final implementation of the Bankruptcy Reform Act,
many US citizens are making a mad dash to their local
attorney's office. Rightfully so, as the Bankruptcy
Reform Act will institute many changes that will ultimately
make the declaration of bankruptcy a much more difficult
task. But as you ponder the notion of a flood of bankruptcy
filings, also realize that many of the major credit
card issuers in the country are making changes to
their guidelines that will cause monthly payments
to go up and in many cases, almost double.
For years minimum payments have been
set at roughly 2% - 2.5% of a persons total debt.
So if you owed $10,000 you were paying roughly $200
per month. Now with guidelines changing a person could
be required to pay 4% or more each month towards their
credit card debt. Using the same example that would
mean that the same $10,000 debt would require a $400
payment each month.
Although it is not an astronomical change,
for those people who are living minimum payment to
minimum payment this could be a crippling blow to
their wallets. Another thing to consider is that most
people are unaware of this upcoming change, meaning
that they may or may not be able to make that payment
on time. As we all know, if you don't pay on time,
you will pay the fine.
Realize as well, that being charged
a late fee is almost always coupled with an interest
rate hike. This 1-2 punch from credit card issuers
has an eerie timing about it. The government is going
to make it more difficult for people to declare bankruptcy,
and the banks are making changes that might cause
more people need bankruptcy. It isn't difficult to
see how these two changes together can, and most likely
will, have a dramatic impact on the rest of the US
and our commerce. No matter what the outcome proves
to be, it is quite apparent that timing is everything.
For more information please visit: solveyourc
reditproblems.com
A Florida native with a bumpy financial
past, turned financial education guru and advocate
for the masses.
