President Obama has signed a bill that will finally bring relief to credit card consumers. The bill takes effect in March, 2010.

The credit card companies have built in many “gotchas” over the years and thumbed their noses at congress, the law and the American consumers to the tune of Billions of dollars each year. But now the law has come back to bite them. Some of the “gotchas” are gone, not all mind you, but some. Here are the new laws taking affect in March 2010.

1) Grace Periods Are Back – You won’t be counted as late unless you are 30 – 60 days past the due date. No longer can your bank tell you that it takes several days to process your payment.

2) End Universal Default – Right now, if you are late on a single payment, all your credit card companies can raise you to the top 30% interest rate. Ending “universal default” will stop this abusive practice.

3) Eliminate Teaser Rate Hikes – If they raise your rate, you will be able to pay your exiting balance off at the lower rate. Only new purchases will get the higher rate.

4) Cap Penalty Periods – Right now, if you are late, your rate shoots up – maybe forever. With the new law, the penalty period will be 6 months, after which the bank will lower your rate if you continue to pay your bill on time.

5) Regulate Overpayment Allocation – If you pay over the minimum, the bank will have to allocate the extra towards the balance being charged the highest interest rate. Right now, if you pay more than the minimum, the banks usually apply that towards the balance carrying the lowest rate.

Of coarse it is best to use the principles that I teach in my blog and my new book… (WATCH FOR IT, IT’s COMING SOON!). These principles will teach you to pay down your credit cards, or pay them off each month without interest, increase your credit limits and that will increase your credit scores dramatically. Not just a point or two like most tips but up to 120 points if the conditions are right. Check out my new book and see what I mean.

Till next time, Save, Save, Save and pay off those bills… Now! It will dramatically enhance your life, you won’t be a slave to finance anymore and you will have peace of mind about your future. future.

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