Federal law mandates new payment solutions for old... - Other News


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Credit Card Applications » News » Other » Federal law mandates new payment solutions for old residents

Federal law mandates new payment solutions for old residents

Federal law mandates new payment solutions for old residents

According to a worker who works full time as a sales agent, her mother who is 71 years old has to pay more than $20,000.00 for her credit card debt with an interest rate of 20 percent and above every month. Unfortunately, her mother is old and only relies on the pension she receives monthly; she can only afford to pay the minimum fees and balances regularly.

This is no longer a surprise as older people do not earn income which they can use to pay for their credit card debts. Thankfully, with new Federal Laws, credit card companies are mandated to show the duration or length of time for its clients to make the minimum amount of payment. This should reflect on their credit card statements. Aside from the time for payment, it is also required that credit card companies show the actual interest rate that would be charged for the remaining time.

With this system, the debtor will be more informed about his or her balances and obligations to pay. For people who earn a fixed amount of income, having a plan might do the job. It is more appropriate to pay off the balance in a short period of time rather than paying the interest which is accumulated based.

But for seniors who do not have any stable jobs or who just depend on pensions, credit analysts suggests that they should use their savings to pay off the interests. However, financial analysts remind that they should also secure other savings before they use them to pay their taxes. Expenses like paying their annual taxes or insurances may be sacrificed once they are not closely followed. Moreover, moving the credit card debt to a lower interest rate might help seniors decrease their credit card debts if they decide to pay it long-term.

When older people consider this option, they use their equity and mortgage to benefit from lower interest rates. These are common among older people who do not have the intention to pay their debts on a one-time-big-time basis. But the best solution according to credit card researches is to always lessen the expenses that both the child and the parent make.

Disclaimer: This editorial content is not provided or commissioned by the credit card issuer(s). Opinions expressed here are the author's alone, not those of the credit card issuer(s), and have not been reviewed, approved or otherwise endorsed by the credit card issuer(s). Reasonable efforts are made to present accurate information, however all information is presented without warranty. Consult a card's issuing bank for the terms & conditions.
All rates and fees, and other terms and conditions of the products mentioned in this article/post are actual as of the last update date but are subject to change. See the current products' Terms & Conditions on the issuing banks' websites.
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