The Credit CARD Act was developed to level the credit card industry playing field for consumers, but analysts say responsibly using a credit card is as simple as thoroughly reading through the terms and conditions.
Industry lingo has been regarded as a problem throughout the years for consumers, many of whom have no prior knowledge of personal finance terms. The Credit CARD Act was created to provide Americans with more transparency and insight into the credit card industry, and in order for consumers to avoid debt, analysts say it’s more crucial than ever to read the fine print.
Bankrate reports that the average interest rate on credit cards across the country soared to 14.7 percent in the second quarter of 2010, the last quarter before the Credit CARD Act went into full effect on August 22. According to Synovate, a market research firm, this is the highest average since 2001. As credit card issuers grow more desperate for profitable revenue streams, rates and fees are predicted to increase in the coming months.
High interest rates can quickly result in mounting debt for card holders. I