The most obvious conclusion that people will draw from the scrapping of the universal default rule is that they are free to default on as many bills as they want.
Well, if that is all you have understood from the credit reform law, then you have missed the whole point.
The idea behind the law is to make it easier for people to get out of debt.
If you are not going to pay your bills on time, you are actually increasing chances of landing up in debt.
This does not make sense, does it? How to use the new legislation to your advantage? What benefits can you extract from the same? There is no doubt that it has become difficult for credit card issuers to punish errant cardholders.
In such a scenario, do not consider this as motivation to become one yourself.
Instead, get in touch with your service provider and offer settlement of your debt.
You can indicate that the card issuer cannot increase interest rate or change the terms and conditions without previous consent.
This means that it is not possible to immediately go in for an interest rate hike.
At least thirty to forty five days will be required before a hike can be implemented.
In such a scenario, if you offered to repay thirty to forty percent of the total amount owed and if you seek an exemption for the rest, you have a very good chance of achieving debt relief.
This means that you can bring down your debt and get an installment facility to pay the balance amount because credit card issuers want to get rid of problematic borrowers.
You will suffer from a huge hit on your credit score.
However, that is a small price to pay if it actually helps you to bring down your card debt down to zero.
If you are not keen on a settlement, then you can go through the terms and conditions and make sure the credit card issuer follows it to the last line.
The law must be followed and later as well as in spirit.
You must be prepared to pay a higher interest rate but you will enjoy better facilities and amenities as far as repayment is concerned.
If you are still not certain how to make use of the new law, just go in for a credit counseling session with a debt settlement expert.
Not only will you get advice on whether debt settlement is suitable or not, you will get specific information about the position of your debts and how the new law can be utilized to your advantage.