Pennsylvania residents may be concerned about the recently announced interest rate increases for American Express cardholders. While it is legal for the company to raise their rates, there are certain guidelines that credit card issuers must follow. The CARD Act, which was signed in 2009, changed the way credit card companies can do business and gave consumers several protections.
Many Pennsylvania residents who have credit cards are bound by agreements to enter into arbitration instead of being able to file lawsuits against their credit card companies. Although arbitration is touted as a less expensive and quicker method to resolve disputes than court litigation, these clauses generally favor the credit card companies while preventing consumers from being able to file class action suits.
Using credit cards can create financial challenges especially if consumers do not watch their spending and do not understand how interest is calculated. Credit card users with consumer debt who experience unemployment, reduced income and increased expenses may face creditor harassment because of delinquent payments. Consumers in Pennsylvania and across the country who are making only minimum payments on a credit card to their credit card company could benefit from understanding how credit card interest is calculated.
Pennsylvania parents may find it prudent to provide for the emergency needs of a child going away to college by means of credit cards. However, it is important to recognize that the conditions of such a card could create problems for any party involved in its management or use. A bankruptcy on the part of one party, for example, could lead to collection action against another.
In Pennsylvania, creditors wishing to sue a debtor for payment generally have four years after the debt becomes delinquent in which to do so. Although four years is the statute of limitations in Pennsylvania, a judge may sometimes rule that the debt is subject to the state laws where the credit card was issued from. For instance, debt on a Wells Fargo credit card might be subject to a six-year statute of limitations, as the card is issued out of South Dakota.
Many Americans struggle with debt, especially credit card debt. For some, unchecked spending combined with the high interest and fees associated with credit cards can lead to financial pressure and anxiety. Pennsylvania residents are not immune to this situation, and anyone struggling with credit cards may benefit from strategically pay down credit card debt as soon as possible.
Credit cards have a way of being people’s closest comrades and simultaneously being their worst enemies. This is because the more that credit cards are used, the more people can buy and pay for. However, it also means that people incur more debt. Credit card debt may be particularly troubling if a person begins to have his or her wages garnished in order to pay back his or her financial obligations.
People in Pennsylvania are generally aware that debt on a credit card is undesirable. A majority of credit cards charge high interest rates, which makes it expensive to maintain a balance on a card from one month to the next. Credit card debt may also negatively impact one’s credit score, especially if the person’s cards are maxed out. It’s best to use credit cards in only a few select situations.
Being in debt in Pennsylvania can feel like being in an inescapable deep hole. The more a person may try to climb out of the financial hole, the more he or she may feel behind due to high credit card interest rates and inadequate income. There are a few signs that a person may benefit from filing for bankruptcy in order to finally remove his or her debt.
Using credit cards is one of the easiest way to rack up thousands of dollars in debt. This is especially true if a person in Pennsylvania encounters a financial emergency that requires use of a credit card. However, credit card debt is one of the hardest types of debt to eradicate because of the high-interest rates often tacked onto these cards. Research shows that an increasing number of people in America realize this and are becoming more conservative in their credit card usage.