Statistics on First Few Months of Credit Card Act Changes
GreenPath Debt Solutions recently released statistics and consumer feedback concerning some of the Credit Card Act changes that went into effect three months ago on February 22.
When statement holders saw how long it would take to pay off their balance by making the minimum payments, many were inclined to reach out to learn more about effective debt management.
Since the phone number and grid started to appear on credit card statements in February, GreenPath Debt Solutions has received more than 14,000 calls from consumers who said they called the number on their statement.
Following is some feedback from credit counselors
* Callers say that credit card statements are now much easier to read. They are finally getting the nudge that they need to seek education on personal finances and debt issues.
• Callers are often feeling lost and even embarrassed over their situation.
• Often it is the first time they have spoke with anyone about their situation.
• What’s really impressing card holders is the table that indicates how long before the debt is paid off if they only make the minimum payment.
• Some callers are just shopping around and comparing their interest rates to what GreenPath can offer on a debt management program.
• Callers are showing a newfound awareness and preoccupation with interest rates. All of a sudden, clients are aware of the APR and how just making the minimum payments is not an adequate action plan to managing the debt.
• More people seem more motivated to get out of debt. The payoff box on their credit card statement has really been shocking clients into doing something about their debt. Especially for those who see it will take them 20 years or more to pay off their card at the minimum payment.
• Most callers are ready to take action and want to focus on reducing their interest rates.
• The convenience of having a phone number documented on credit card statements is a big help because many consumers are always on the go and don’t have the time to complete their own research.
For more information, visit greenpath.com.