Hefty ‘Debt Relief’ Fees Await Credit Card Over-Users

The beginning of a new year marks the arrival of the first post-holiday credit card statements and the realization for many that they may need to turn to debt relief companies for help. But consumers groups are warning credit card users that so-called debt consolidation plans could leave you with more debt – in the form of fees that can run as high as $4,000 for total debt of about $20,000 in the first half of a debt settlement agreement. In many debt settlement plans, consumers make monthly payments, usually into a special bank account, until “there is enough to make a lump-sum settlement offer to their creditors,” according to ConsumersUnion.org, the prominent non-profit organization which publishes Consumer Reports. The debt settlement companies, however, immediately start taking their fees out of this account.

Fed Offers Vital Credit Card Tips for Black Friday Kick-off

The Federal Reserve wants “Black Weekend” shoppers to use their credit cards wisely, so it is placing 45-second ads to drive the message home in movie theaters through Dec. 3. The ads will appear before movie previews at 12 “highly-attended theaters in major metropolitan areas,” the Fed announced.

Federal Reserve Proposes Restrictions on Gift Card Fees

The Fed announced today proposed rules that would restrict the fees and expiration dates that are normally applied to gift cards. But the rules won’t take effect until February of next year, missing out on the 2009 Christmas shopping season.

Choosing A Credit Card: The Deal is in the Disclosures

When you are choosing a credit card, there are many features — and several kinds of cards — to consider: Fees, charges, interest rates, and benefits can vary among credit card issuers. As a result, some credit cards that look like a great deal at first glance may lose their appeal once you read the terms and conditions of use and calculate how the fees could affect your available credit.