With new credit card legislation on the books, many credit card companies are coming up with new ways to minimize their risks and increase their profits. Because of this, credit card consumers need to be on the look out for changes even if they pay their minimum balance faithfully and on-time every month. One of the changes that may greet unsuspecting credit card consumers is a "minimum balance" increase that could make their credit card payments unaffordable.
According to most credit cardholder agreements, the credit card companies have the right to increase the minimum payment required, even on existing balances that have a fixed interest rate. Some of these companies are raising the minimum payment to as much as 5 percent.
That can make a huge difference if you were paying only 2 percent before, which is common. If you find yourself facing a minimum payment increase on your credit card that's unaffordable you may want to consider speaking to your credit card company.
But before you call, ask yourself if you're willing to accept an interest rate increase in lieu of the minimum payment change, because that's most likely the alternative they will offer you. If not, you may be stuck with the minimum payment requirement. If you're unable to afford your credit card payments and other financial obligations, your credit card debt may be unsustainable. Bankruptcy offers alternatives for repaying or discharging burdensome debt.
To find out more about bankruptcy, contact a Dallas-Fort Worth Bankruptcy attorney today.