Not long ago, The Canadian Government came out with new credit card rules to protect consumers. Since January 1st 2010, credit card issuers are required to:-
Just being aware of these new credit card rules can make you think twice about borrowing and only making the minimum payment.
The rules are an eye opener for how credit card companies have been operating over the years.
They emphasise the fact that it can take years to pay off the balance in full and that the interest paid will often add up to more than the purchases made.
The government acted responsibly by implementing these new credit card rules.
Our society is burdened by debt and if these new rules encourage just one person to reduce their debt load, then the government has done a good job.
Credit cards have become almost indispensible to the average person. It is next to impossible to buy an airline ticket or rent a car without one.
They offer a great convenience. You can purchase items without showing many pieces of ID or carrying large amounts of cash. You also have convenient record of purchases.
They can become a burden however, when you don’t pay your balance in full per payment cycle.
You are essentially paying a high interest rate (18% or more) on your purchase of groceries,clothes, tools or restaurant bills.
Become aware of these rules governing the companies that issue them. Examine statements more closely and try to join the 70% of cardholders who pay off their balances each month.
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