Credit card debt has increased significantly in the past decade. According to the Federal Reserve, this debt has increased by 25 percent in the past 10 years and reached $963B in January 2009.
Reports by Nielson Company and the Federal Reserve 2008 show that more than three-quarters of families have credit cards and close to half carry a balance. Seventy-eight percent of U.S. families have a credit card, and 44 percent of families carried a balance on their credit card. The average amount of credit card debt among families with a balance was $7,300 in 2007.
A Federal Financial Institutions Examination Council (FFIEC) report of 2008 shows that credit card delinquency rates have increased by more than a third since the end of 2006. The number of accounts more than 30 days late has increased from 3.9% in the fourth quarter of 2006, to 5.6% in the fourth quarter of 2008.
“These are huge numbers but there is some relief for a few lucky people” says Palonek, founder of Foundmoney.com, who helps reunite people with their lost or forgotten money and was the first company on the Internet to do so. Foundmoney.com is a company that was started in 1994 and specializes in unclaimed money and has reunited thousands of people with their lost and forgotten money.
Many folks could use some extra cash right now to start to pay down those Christmas bills. A quick and easy way is to simply do an online web search at www.foundmoney.com. There you can check to see if you, a loved one, friend or neighbor has some unclaimed money just sitting there waiting for its rightful owner to make a claim for this cash. “Wouldn’t it be wonderful if you found a few thousands or just a just a few extra dollars right now to pay down some of those credit cards”, says Palonek
What is staggering says Edward Palonek, “is the amount of the fees earned by the credit card companies”. According to calculations based on GAO of 2006 and the Federal Reserve in 2009, these Issuers of the credit cards collect $15B annually in penalty fees. Penalty fees on credit cards are around $15 billion annually, an estimated 10 percent of total credit card industry revenues. In addition the same report states that one-fifth of those carrying credit card debt pay an interest rate above 20 percent. Ninety-percent of issuers assessed variable rate cards and an estimated one-fifth were charged interest rates above 20 percent.
President Obama enacted the Credit Card Accountability, Responsibility and Disclosure (CARD) Act of 2009, marking a turning point for American consumers and ending the days of unfair rate hikes and hidden fees. That’s why according to President Obama, credit card companies will now be required to tell credit card holders how long it will take to pay off a balance and what it will cost in interest if they only make the minimum monthly payments. It will also put a stop to retroactive rate hikes that appear on a bill suddenly with no rhyme or reason.
Every card company now has to post its credit card agreements online and Companies will have to mail them 21 days before payment is due, not 14.
This new law now ends the practice of shifting payment dates. Lastly, among many other provisions, there will be no more sudden charges and changes to terms and conditions. The Credit Card companies will now have to give at least 45 days notice if they do make a change.
To search for your name visit FoundMoney.com’s website where you may find that unexpected cash to help pay those credit card bills.
Contact
Foundmoney at www.foundmoney.com
Edward Palonek at www.edwardpalonek.org
