Credit card minimums not doubling, but might still hurtPosted by Nick Niesen on October 29th, 2010 Executives at Debt Shield, Inc., a Maryland-based debt settlement firm, said that the increased minimum monthly payments on credit card balances will most likely not double, as it is widely reported, but that the increase might push financially struggling cardholders into bankruptcy or bankruptcy alternatives, like debt settlement. ?While credit industry experts and the media claim that credit card companies are doubling their minimum monthly payments from 2% of the outstanding balance to 4%, the actual minimum payment increase is more complicated and less drastic for most cardholders,? explains Mark Baylis, President of Debt Shield. ?The new rules require credit card banks to set their minimum payments to cover all interest and fees plus 1% of the outstanding balance, which will result in significant increases for high-interest accounts.? ?The increased minimums will be good in the long term because it should encourage less debt,? Baylis continued. ?But if the credit card companies want to help consumers, they need to stop punishing cardholders with outrageously high interest rates.? Debt Shield, Inc., is a debt settlement company dedicated to helping consumers resolve their unsecured debt through mutually agreeable and discounted lump sum settlements in consideration of legitimate financial hardships. By helping consumers avoid bankruptcy, Debt Shield provides a service for both debtors and creditors. For more information about Debt Shield, call 1-888-397-7546 or visit the website at http://www.debtshield.com/?=mmp>www.debtshield.com. Like it? Share it!More by this author |