If you haven’t already herd there are big changes in store for credit card holders. Congress passed a bill on Wednesday that will force credit cards to make major changes to the way they do business. The major change is that credit card companies now have to limit sudden hikes in interest rates.
Sure high interest rates have forced millions of Americans deeper into debt, but who is really at fault? Can you blame the credit card companies for wanting to make more money? Or can you blame the consumer for not being responsible with their spending?
No matter what, the credit card companies are going to come up with a different strategy to make money. After all the credit card companies have bills and salaries to pay too. Who is most likely going to pick up the bill? The responsible credit car users.
In order to increase profits most credit cards companies will start charging annual fees to use their services. They will also reduce or even drop rewards programs.
We personally use a credit card almost everyday. We pay many bills with the cards and about 95% of our spending is done with our credit card. We pay off the bill every month on time to take advantage of the rewards. I can only think of one time where we were late paying a bill so over the past 7 years we are well ahead of the game. Sounds like those days may be over.
IfÂ credit card companies start charging annual fees and drop rewards programs we will switch back to cash or start using ourÂ debit card to pay for everything. Credit cards are such a convenient way of paying for things and can be rewarding if used responsibly, it’s sad to hear this news!