The CARD Act of 2009 was congressional legislation designed to protect consumers and requires that your credit card statement chart how long it will take to pay off your balance if you only make minimum payments monthly and not add any additional charges to the account. It also must indicate how much you need to pay monthly in order to pay off the debt in three years. In addition, it must show the estimated total you will end up paying for either option you take. It’s amazing to see how motivated one will become when seeing the amount of money saved by paying the three-year payment plan! By the way, from the time that the CARD Act was passed until it was enacted, some banks increased the minimum payment from 2 percent to 4 percent of the balance, thus decreasing consumer monthly cash flow.
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