Debt Relief
The Debt Relief Center asks a few simple question so that we may understand your current situation

No suitable video player available.
Your Free Debt Savings Estimate
  • It's fast and convenient
  • It's your right to get relief
  • Your savings may surprise you
  • It's free, no commitment
See Savings
Your debt relief savings estimate is free with no obligation.

Understanding Credit Agreements Can Help Avoid Debt

Share this on:

By examining credit card agreements, consumers could ease their anxiety over monthly bills. Due to recent regulations that set caps on debit fees payment processors can collect on merchant transactions, credit card issuers have implemented a number of new charges to existing products to raise revenue.

However, new cardholders may be most the affected by the changes due to their inexperience with the lending system, Forbes reports.

According to a 2008 study, novice cardholders pay an average of $15 in monthly fees, the news source says. Within the next four years of account ownership, these charges were found to decrease by 75 percent, as customers gained the experience necessary to circumvent cash advance fees, late charges and over limit penalties.

The study also showed that the likelihood of a repeat mistake in back-to-back payment cycles among these cardholders was reduced by almost 50 percent over the four-year period of study, according to Forbes.

As a result, new cardholders could be at a greater risk today than in recent years due to new charges on checking accounts and other services. But, by reading and understanding their card agreements, consumers can avoid added debt and missed payments that could hurt their finances. 

Timely articles written by the Editors at DRC

New government regulations in place for consumers in need of debt relief for credit cards and other unsecured debts.