Credit card statements getting a makeover
Your monthly credit card statement is getting a makeover -- one that's required by the new credit card law.
Future statements should be easier to read and understand. The law says fees and charges must be highlighted and explained in plain English.
Something you should spot right away: a chart that clearly shows how long it will take you to pay off the balance if you only make the minimum payment -- plus how much that will cost you in interest.
You may get quite a shock when you see those figures.
Here's an example provided by the web site lowcards.com:
Let's say you have a balance of $3,000 and an interest rate of 14.4 percent. If you pay only the minimum, it will take you almost 11 years to pay off that balance at a cost of $4,745.
The new chart will also show you how much you can save if you pay off the balance in three years and how much that monthly payment would be. In this case, paying off the balance in three years would save you a $1,030.
By law, your statement must be sent at least 21 days before the due date.
For more information
What you need to know about the new credit card rules
Future statements should be easier to read and understand. The law says fees and charges must be highlighted and explained in plain English.
Something you should spot right away: a chart that clearly shows how long it will take you to pay off the balance if you only make the minimum payment -- plus how much that will cost you in interest.
You may get quite a shock when you see those figures.
Here's an example provided by the web site lowcards.com:
Let's say you have a balance of $3,000 and an interest rate of 14.4 percent. If you pay only the minimum, it will take you almost 11 years to pay off that balance at a cost of $4,745.
The new chart will also show you how much you can save if you pay off the balance in three years and how much that monthly payment would be. In this case, paying off the balance in three years would save you a $1,030.
By law, your statement must be sent at least 21 days before the due date.
For more information
What you need to know about the new credit card rules