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| Credit Answers > Debt-Management-Articles-2009 > More Credit Card Holders See New Fees |
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More and more credit card holders continue to see new fees on their monthly billing statements as credit card debt continues to increase.
According to a report by ABC News, a Pew Health Group Safe Credit Cards Project recently revealed that credit card interest rates went up an average of 20 percent in the first six months of 2009.
Forty-five percent of participants in a survey conducted by Credit.com, a San Francisco-based provider of credit card data, said that within the last several months card companies had either raised rates,
imposed higher fees, increased their minimum payment or reduced credit lines, up from 33 percent earlier this year.
USA Today reported that the annual fee is making a comeback with some bank cards. At one point, annual fees were charged to some customers who were considered 'higher risk' card holders.
Now however, many card holders who avoid charging more than a specific amount on their cards each year as well as those who carry a balance that they can easily pay off in full each month are finding
themselves being charged an annual fee. In addition, some consumers are being penalized with 'inactivity' fees if they don't use their credit cards during a specific period of time.
In addition to escalating interest rates, many credit card holders are finding that rewards programs and promotional rates are also being scaled back by many card issuers. Fees are also being charged for
purchases made outside the United States.
How Can You Take Action?
MSN Money reminds card holders that they should take time to go over their monthly credit card bill carefully and pay close attention to rate change notices. Above all, consumers who choose to have a
credit card should make all credit card payments on time. Late payments may be used as an excuse for card companies to increase your interest rate.
If you received warning from your card issuer that you will be seeing an increased interest rate, USA Today suggests contacting your lender to express dissatisfaction in their term changes. Ask the
card issuer if they would be willing to waive the fees. If they decline to do so, you always have the option of closing your account. If the card was newly-issued, it may be worth considering
according to ABCnews.com which also suggests keeping a longstanding account open, but paying down the balance without making any new charges.
Transferring your balance to another lower-interest card could be an option, however be aware that some credit card issuers charge customers a fee to transfer balances.
A Light At The End Of The Tunnel?
CreditCARD Act legislation, initially scheduled to take effect in February 2010, is now slated to go into effect December 1.
The legislation has good intentions - it aims to restrict credit card companies from charging extra fees. Among other unfair practices, credit card companies will also be banned under the new law from
charging customers higher interest rates without fair warning.
In the meantime, however, credit card debt is on the rise. Card holder debt increased 14 percent nationally from September 2009, according to reports from InsideARM and CreditKarma.com.
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