Bankruptcy Chapters

A recent report from a Memphis news station warns of the latest risk to the safety of your credit card information: a super-stealthy computerized scanner that a tech-savvy thief could use to get your credit card digits while passing you on the street.

RFID Technology in Your Wallet

Here’s how the technology works, according to the story, and why it might pose a problem for ordinary consumers.

• RFID technology: Something called radio-frequency identification is commonly used in passports, credit cards and debit cards to facilitate transactions. Merchants can process information from RFID-enabled cards with a simple scan.
• Portable computing devices: Unfortunately, the technology that allows for quick transactions in the mall and at the airport also, it seems, opens the door to stealthy identity crimes. T

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Tags: Card, Card Information, Credit Card, Credit Card Information

It turns out U.S. consumers are not only reducing debt, but we’re also preventing it, say Chicago bankruptcy lawyers.

More than 20 percent fewer consumers used a credit card in the past month – that’s 56 percent compared to 87 percent just three years ago, according to a recent study by Javelin Strategy and Research. It’s the lowest percentage since Javelin started taking data, and they expect numbers to go even lower. It seems that folks are finally getting the picture that saving money is sometimes as simple as avoiding credit.

So how are consumers paying today? Debit cards, prepaid credit cards and good ol’ cash. Unlike credit cards, each of these options discourages you from spending more than you can afford and also provide instant payment (versus letting charges float around on your account until your bill arrives). And each option decreases the chance that you’ll be charged penalty fee, since banks are no longer allowed to automatically enroll customers in overdraft protection programs.

And here’s another potential positive: since card issuers are dealing with more debit card regulations, they’re going to try to make credit cards more appealing to consumers.

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Tags: Credit Card, Use

With the Credit CARD Act set to take full effect on August 22, many credit card issuers are reportedly already altering their policies to come into compliance with the law. And, because that law seriously limits some of the fees issuers can charge (including overdraft fees), many banks are also, according to this article, introducing new fees.

What You Might Notice

Make sure you’re reading your credit card statements closely in the coming months, as any new fees will be mentioned there. Here are some you might encounter:

• Annual Fee: This isn’t a new one, but many issuers have abandoned annual fees in favor of inactivity fees, charging customers who don’t use their cards often enough. Because the CARD Act outlaws inactivity fees, sources note that you should expect the annual fee to work much the same way: if you make enough purchases, your issuer might waive the expense, but if you don’t spend a minimum amount of money (i.e. if your account is too inactive), expect to pay.
• Foreign Transaction Fee: This is for when you make purchases in another country (regardless of currency) and is often charged in addition to a currency conversion fee. You can

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Tags: Card, Credit Card

Anyone struggling with debt or trying to rebuild after a bankruptcy filing probably knows how challenging credit card bills can be: though the plastic rectangles themselves may be highly convenient, the monthly payments we make on them often are not.

And, with the economy tighter than the lid on a pickle jar, posts like this one are useful. It outlines some ways to minimize the amount you owe on your credit card without significantly altering your lifestyle (which, for many of us, may be impossible at this juncture).

Steps Toward Less Credit Card Debt

• Pay earlier than you have to: If you have a revolving balance on your credit card (meaning that you don’t pay the full amount you owe each month), interest is charged to that amount every day, so that the longer you wait to pay your bill, the more interest accrues. If you can pay even a few days before the due date, you can save yourself a little bit each month. A

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Tags: Card Bill, Credit Card, Credit Card Bill, Now

Today is Credit Card Act Day, the day when the long-awaited and much discussed changes to your credit card bills kick in.

Signed last May, with some parts slowly taking effect over the last few months, the full force of this law kicks in today.

Credit card companies began adjusting to the laws last fall, but you should still keep a close eye on your credit card statements over the next few months to hold the companies accountable and ensure they are following the law.

Most news outlets, including the Associated Press, are providing consumers with a full run down of the changes. Here’s a summary of the new laws, how they might affect you, and what you should keep in mind when exploring new cards.

More stable interest rates. Interest rates have not been capped, but there are more limits on how and when a card company may change your rates. If a card company is to change your rate, you must be given 45 days advance notice before it kicks. Also, the rate on existing balances can’t be raised unless you’re 60 days or more overdue. Previously, a card company could change the interest rate on past debts on short notice, leaving you stuck with a quickly ballooning bill. Now,

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Tags: Changes, Credit Card