The new law requiring higher minimum credit card payments is now applicable. Here is an excerpt from Bankrate's Article:
The squezing is continuing. More pressure. Pressure pops bubbles.
If you're one of the 7 percent of Americans who make only the minimum payment on their credit card bills each month, things are about to get worse for you.In the past, credit card companies required customers to pay an average of just 2 percent of their total credit card balance, which meant constant debt for many consumers. The 2 percent minimum payment only covered interest and other fees, so it could often take a lifetime to pay off the principal balance
Now, federal banking regulators are trying to save consumers from themselves by issuing guidelines to credit card companies and banks stating that monthly minimums should cover interest, any fees or extra charges and at least 1 percent of the principal amount.
This comes at a particularly bad time for Americans who are facing both higher interest rates and the new bankruptcy law that makes it harder for consumers to write off their unsecured debts.