With the passing of the Credit CARD Act came a change in the format of credit card statements. These new statements are designed to help you see the most important aspects of your credit card – your interest rate(s), total fees paid, how long it will take to pay off your card, changes to interest rates, and changes to your account terms. I’ve noticed these changes in my credit card statements, and I like them. The information is easier to find than before, and I hope the payment information section will open peoples’ eyes to the dangers of the minimum payment.
Five Cent Nickel, another personal finance blogger, created a nice graphical explanation of these changes using the Federal Reserve’s sample statement. I thought it might be useful if you’ve been wondering about these changes. The information that FCN provides also includes some of the other changes that came with the Credit CARD Act.
Do you like these changes and the new format? Do you think it will help people pay off their credit cards faster, or will people who pay the minimum payment keep on ignoring their situation? Share your thoughts in the comments!
Paul Williams is a fee-only financial planner in Lancaster County, PA. He has a passion for teaching others about personal finance - especially from a Christian perspective. If you'd like to learn about his financial planning and tax preparation services, click here. If you enjoyed this article, you might also be interested in:
- The Credit CARD Act – A Summary
- Being Wise with Your Credit Card
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July 20th, 2010 at 7:43 AM
This is great information. I do like the new format, I don’t have any credit cards at this time but if/when I decide to get another one I think that this will be a lot clearer than the statements from the past.
I do like that they put your interest rate in the middle in bold and break everything down. I also like where it has year to date spending and interest. I think this will call more attention to how often people really do use their cards.
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Paul Williams
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July 20th, 2010 at 10:19 AM
Thanks for your comment, Kaitlin! I agree it’s definitely an improvement over the old statements. But the big question is whether it will actually make a difference. Will people be more motivated to pay more than the minimum when they see it could take 10 years if they don’t?
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