We’ve all been warned not to carry a balance from month to month on our credit cards, and especially to avoid making minimum monthly payments. That’s because minimum payments, especially on large balances, can take half a lifetime to pay off, at which point you’ve probably paid more in interest than in capital.
The new credit card laws will compel credit card issuers to spell out just how long it will take to pay off your balance by making minimum monthly payments. While this will surely be an eye-opener for many people, there’s one group that won’t benefit from the new rules: the responsible cardholders who paid off their balances on time and in full every month.
Rather than being rewarded for their good behavior, these cardholders will suffer as interest rates and fees continue to skyrocket, and credit limits and reward programs are scaled down.
If you’re a responsible cardholder, continue to pay off your balance at the end of every month. Even if the card companies aren’t recognizing your self-control, you will maintain a good credit score - and that will come in handy in the coming days when credit isn’t as readily available as it once was.
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