New Min Payment On Credit Cards

[-Tony- 0]

Payday Loans:

 

 

 

As of 1 Jul 05, service members will have more protections against payday loan collectors. Key sections of the law are:

 

 

 

- A payday lender cannot garnish military wages

 

- The lender cannot conduct collection activity against a military borrower or their spouse if the borrower is serving in a combat or combat support position

 

- The lender cannot contact the borrower’s commanding officer or anyone in the borrower’s chain of command

 

- If the base commander has declared the lender off-limits, the lender cannot make loans to military personnel

 

 

 

Student Loans:

 

 

 

As of 1 Jul 05, rates on all federal student loans will rise nearly 2 percentage points. Rates on Stafford loans on which payments already have begun, for instance, will jump from 3.375 to 5.375. By refinancing before 1 July, the borrower can lock in with a new fixed-rate loan at 3.375 percent—waiting will increase your percentage rate to 5.375. Here are a few things to keep in mind: Reducing interest rates is almost always good. A typical student with $20,500 in debt could save $2,842 over a 10-year repayment period by consolidating before 1 Jul. Don’t extend the repayment term. If you had a loan with 5 years to go, you could cut your payment by switching to a 10- to 30-year loan, but the added years of interest payments could cost you more in the long run. Do your homework! Start with the Department of Education at (800) 557-7392

 

 

 

Credit Cards Debt Just Got More Expensive:

 

 

 

Credit card minimum payments will double by Oct 05: Currently, credit card companies charge 2% of the outstanding balance to set minimum payments on credit cards. Congress has passed a law that mandates an increased 4% of the balance on all credit cards. What does that mean to the everyday consumer? It means that if you are financially struggling now with numerous credit card debts and barely making the minimum payment, your credit card payments will double in cost beginning 1 Oct 05.

 

 

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Seems to me this is going to hurt a lot of people before it helps. I see January as being a huge month for foreclosures. I predict 2006 will be a record setting year for foreclosures.

 

Tony

[MichaelC 160]

You're right, Tony. That new credit card law is going to imapct a lot of folks who are on the edge already. I wouldn't be surprised if we do see an explosion in foreclosures as a result.

[-Tony- 0]

I think it could double record highs.....Just more people for me to help.