The new wave of consumer reform is on the way and credit card companies are already beginning to initiate “compliance” procedures.  These procedures include sending you notices and advising you of changes in your interest rate.  Bank America for example has already sent notices advising customers that they will no longer have fixed interest rates, and instead are replacing your rates with variable ones.   If you’re not afraid, at least a little bit, you should be.  The variable interest rate is what bit thousands of homeowners when their payments increased beyond their capacity over the last two years.  A variable rate means it is subject to change when the credit card company would like to change it, resulting in a potential increase in your usually monthly payment due.  Credit card companies are now required to advise you of important changes likes these, but keep in mind that the changes may sneak up on you.  Laura Rowley, of Money and Happiness, warns that one of the worst mistakes you can make in your finances is to toss the junk mail without reading it.  Many of these important notices resemble junk mail, meaning you may toss them without reading them or realizing the importance of the notice.  In a month or so, you will then receive you bill and be surprised by a whopping increase in you minimum monthly payment due.  The result is more spiraling of debt.

Your first line of defense in avoiding getting further into debt is knowing what you owe and how you owe it.  Don’t just inspect your bill for the recent transactions.  Review your finances charges and the terms, like your interest rate, so that you can be aware of changes and how they affect your monthly budget.

Your second line of defense is simply finding a way to get rid of the debt.  As credit card companies continue to gouge, many consumers have become literally stretched beyond capacity, especially those with fixed incomes.  If you are struggling with debt, talk to a qualified bankruptcy attorney in the Dallas/ Fort Worth area so that they can advise you of the advantages of bankruptcy and how to finally resolve high credit card balances.  Credit card debt is dischargeable in bankruptcy.  If you have other debts that are affecting your ability to make even the minimum monthly payments, they may also be dischargeable. When the debt is discharged, it means that you are finally relieved of obligation.  If the obligation is not dischargeable, you can still make plans through the bankruptcy court to pay off the debt.  You don’t have to worry about the credit card company’s junk mail game when you have good information from a qualified bankruptcy attorney.