Recently, the Federal Government passed a law forcing credit card companies to display more information on your credit card statement to help Americans understand the concequences of paying only the minimum balance. The first section is “If you make no charges using this card and each month you pay: Only the minimum-it tells you how long it will take to pay it off and how how much will will end up paying total with interest. Then they have another section that states if you pay a higher amount how long that will take and an estimated total amount. But this section also shows the savings made by paying the higher amount. They have also added a phone number for credit counseling services.
I am not a big fan of Government intervention into private business. It seems to be a growing trend lately. I think it is very apparent to any credit card holder that if they pay more each month they will pay the balance off faster and thus pay less interest. Nonetheless it is there now and if it helps someone control their debt or get counseling for a problem it can’t hurt.