Also in this playlist...
This transcript is automatically generated
-- at a time when interest rates are dropping across the board credit card rates are hitting new -- believe it or not.
The research firm -- -- says the average interest rate on existing credit cards is nearly 15%.
Now that's up from 13% in 2009.
And it is the highest level since 2001.
By comparison the rate for a thirty year fixed mortgage is just over four and a half percent.
One year ago it was more than five and a half percent.
So why -- a time when Americans are drowning in debt struggling to make ends meet are we seeing record high credit card rates.
I -- the card act.
The legislation meant to lower the burden on consumers and keep them safe from credit card issuers shady practices.
On the surface -- -- that but as with many cases in Washington.
It's just too much room to maneuver for the credit card companies.
Card ratings dot com looks at some of the things you're gonna want to watch out for.
The -- -- doesn't actually protect you from interest rate hikes now it doesn't only in the first year of the account -- it can happen so long as you have 45 days notice.
Often when students go away to college they get overwhelmed by credit card debt the good news is the -- -- should fix that.
It says students under 21 can't get a -- -- what they have a parent's signature can prove adequate income.
The bad news there are -- guidelines for what -- -- adequate income is.
Another thing is that -- situation you won't -- the embarrassing moment at the restaurant when your card is declined.
The card act doesn't outline how much notification you'll get before your card if cancel.
And the -- -- forces -- credit card companies to come up why your payments that is to the highest balances but not the highest interest rates.
That it's cracked the service behind every other seems to be always dozens of loopholes that you have -- fall into that trap you know can be your own consumer advocate.
You pay your bills on time there's virtually nothing they can do -- and if you read all the fine print well it will stay that way.
But really now there's only so much you can do when you have the government helping the credit card industry hurt the very people it's trying to protect.
Filter by section