A recent bill that is expected to pass through the approval of President Obama may help consumers who have been 
struggling to keep up with paying their credit card bill. The measure is meant to lower the high interest rates card holders have been paying due to late or missed bill payments. Each time a card holder pays a late bill or misses it entirely, they have seen their interest rates jump up as high as 30% in one month. Some consumers have even been hit with penalties for paying other bills late. As many consumers continue to struggle under the weight of credit card debt, senators are pushing for a reform to end the unfair interest raises.
The new reform proposes that all credit card companies can not increase the interest rates on credit card accounts unless card holders are 60 days or more past due. Additionally, consumers who continue to pay their bills on time each month for six months, would be able to regain lower interest rates. Lenders would also be required to review the terms and conditions for card holders every six months.
As many people are now unable to even meet their monthly credit card payments due to the penalties, fees, and high interest charges, this new legislation if passed can significantly help individuals pay down their credit card balances and find some relief from debt. It also encourages consumers to focus on making on-time payments each month to get back their lower credit card interest rates, which in turn will improve their financial status and credit score. By paying on time for at least six months, a consumers interest rate could be lowered but it should pave the way for better spending and money management habits among consumers.
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Most high interest credit cards are usually easy to get and really the interest rate only matters if you roll over your balances from month to month. People that have had bankruptcies, judgments or just have a bad credit rating, for what ever reason are the most common applicants for high interest credit cards.