Michael J.

Michael J.

Michael J is keeping you in touch everywhere you find Country music: on the air, on-line and with the iHeartRadio app! If it's happening in...Full Bio

 

Is YOUR Credit Card Company ripping you off? Here's how to smash that debt!

According to ConsumerFinance.gov there ARE limits on what credit card companies can charge IF you are in the military. Otherwise, pretty much ANYTHING is fair game. If you haven't checked your statements lately, you better sit down before you look at yours. I don't want you to fall and hurt yourself from shock. These companies are getting away with "highway robbery" imho.

Is there a law that limits credit card interest rates?

Generally, there is no federal law that limits the interest rate that a credit card company can charge. The law of the state where the card company has its headquarters generally determines the maximum interest rate the card issuer can charge.  

There are laws that limit the interest rate that you can be charged if you are an active duty servicemember (including those on active Guard or active Reserve duty) or a covered dependent. 

The Military Lending Act limits the amount that active duty servicemembers and covered dependents can be charged for consumer credit. Creditors needed to comply with a new rule implementing the Act starting on October 3rd, 2016, except for credit card accounts, which has a compliance date of October 3rd, 2017. Read more about theMilitary Lending Act.  

The Servicemembers Civil Relief Act (SCRA) limits the interest rate to 6% for active duty servicemembers for pre-service debt, that is, credit card balances that were incurred prior to active duty. Read more about the SCRA protections for credit cards and how you can request them.

If you discover that you are paying rates as high as the ones I'm showing on a couple of my statements, here are some suggestions for companies you can reach out to who may be able to create a loan for you at a GREATLY reduced interest rate to pay off your credit card balances and save hundreds even thousands of dollars in interest.

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Here's a video that gives you lots of great tips in getting out of debt. Bottom line is the lower the rate you are paying on your debt, the sooner you'll be out. So be aware of what rate you are being charged and look for ways to reduced that to a better deal when you can. Here is a list of TEN companies that offer loans at MUCH LOWER rates than credit cards


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