FEDS To Double Your Credit Card Bills
Boca Raton, Florida, 11/4/05. The FEDS are planning to require all credit card companies to double your current minumum payments. This is an action that they hope will reduce the national household debt.
Many credit card companies currently have their customers paying only 2% of the balance each month; or what calculates to a 40-50 year loan. Of course, that is also based on paying only the minimum payment each month and never adding to your current balance. (How realistic is that?)
So, there is merit to what the FEDS would like to do in order to reduce some of the national debt out there. After all...doesnít everyone want to eliminate their debt?
The problem that exist is that many consumers will not be able to afford the increased payments! Many cards are already at 29% and even higher! The FEDS promise to keep increasing the prime rate with no end in sight!
Such a coincidence that this ruling comes just as the bankruptcy laws have just tightened up.
One area where consumers are rich, is in home equity. With all of the tremendous appreciation that most U.S. home owners have seen over the past few years, it may be time to tap into this resource. We, at FloridaLoan.net, have already seen an increase in refiís.
For those with equity, this would be the time to catch the equity of your home at itís peak before the inevitable slide down to a home value plateau. For home owners it is also a chance to catch the last of the lower mortgage rates as they once again drift up-ward.
Many experts see this trend of rising rates as a five to six year cycle that may take us back up to those 10% 30 year mortgage rates again (or higher).
Look for rising credit card and mortgage rates, rising credit card payments, adjustible mortgage rates going higher and home prices settling into a plateau after some back slide. Donít forget; that BK back door exit has just had a new lock put on it.
What will this mean to you? Just like putting up hurricane shutters before the storm...itís time for you to financially prepare for the financial changes in your world.
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