On Friday May 22nd 2009, President Barack Obama signed into law new legislation recently passed by Congress that will drastically alter the way credit card companies treat consumers. The bill is set to take effect in July of 2010 and contains many alterations to the current credit card industry. These changes include:

- New rules that will protect consumers with high amounts of debt
- Limitations to the charges that a credit card company can charge (including fees for paying a bill over the phone, over limit fees, etc)
- Tighter restrictions on rewards programs
- Additional annual fees, even for consumers with good/excellent credit
- Credit card holders must be more than 60 days past due on payments before the credit card company can increase the interest rate on the existing credit balance
- Credit card companies would be forced to lower the interest rate to the original interest rate if the consumer pays the minimum balance on time or early for six months
- Consumers who are under 21 years of age must be able to prove that they can repay the loan or have a cosigner that will be responsible for the debt if the minor defaults on the loan

The most significant change will prevent credit card companies from increasing interest rates “on the fly.” Rather, consumers must receive written notice regarding the interest rate increase at least 45 days prior to the actual increase. This portion of the bill is good news for consumers around the country and their strained finances.

Many consumer groups praise the recent credit card changes recently enacted by Congress and President Obama. The new credit card changes should help ease the financial burden placed on American credit card holders.

However, the bill does leave room for debate when it comes to how it will affect consumers with good or excellent credit. For instance, consumers who pay off the entire balance of their credit card each month may face “penalties” for doing so. Why? Banks and credit card companies will lose money by not being allowed to raise interest rates. Therefore, they must make up that money somehow. Plans are being discussed about how these companies will handle the restrictions. Credit card holders who pay off their balance entirely every month may be forced to pay annual fees or have tighter restrictions placed on their rewards programs.

Credit, in general, will also become harder to obtain as banks and credit card companies will be forced into spreading risk around into all credit classes and not just those with lower credit.

What do you think? Please submit your comments and feedback.

All eyes and ears have been fixed on the economy for quite some time now. Many think that Barack Obama will turn things right around as soon as he takes office. However, even he is not so sure. But, despite the economic signs of 2008, 2009 is expected to be a much better year. Here’s why.

Decreasing Oil Prices

Do you remember when oil hit $147 per barrel? It wasn’t that long ago. Currently, oil is only about $45 per barrel. Global demand for oil has dropped significantly. Gas prices are currently $1.61 per gallon around the country. Some experts think that the price of a gallon of fuel will soon drop to only $1 per gallon. Oil prices weren’t nearly this low at the beginning of 2008. It is a great sign that gas prices have dropped so significantly.

Mortgage Rates

Mortgage rates are falling as fast, if not faster, than energy prices. The Federal Reserve has pledged to purchase millions of dollars in mortgage securities. Thus, mortgage rates continue to fall. The average rate for a new mortgage loan is now only 5.26%. Economic prosperity is in the forecast for 2009 thanks to falling mortgage rates.

The Federal Reserve

The Federal Reserve has been working tirelessly to get this country’s finances back on track. The Federal Reserve has pledged to do anything to “strengthen the economy.” Short term interest rates have already been pushed close to 0%. The actions of the Federal Reserve have gone a long way in preserving and restoring the United States’ economic situation.

Barack Obama’s Stimulus Plan

The Obama administration plans on spending between $750 billion and $1 trillion over the course of the next two years. Most of this money will be spent on rebuilding American infrastructure. This would include everything from green technology to transportation and beyond. Millions of jobs will also be created. Barack Obama’s revised stimulus package is credited with helping to get the economy back on track.

Deep Fundamentals

America is still considered to be a leader when it comes to fundamental strength. Innovation, a flexible labor market and higher education are ranked among the highest of America’s strengths.

When it comes down to it, America is in better shape than everyone thinks. We are certainly doing better than we were back in the 70’s. America has overcome many challenges in 2008 and is expected to do so again in 2009.

The race for the White House is in full swing. Barack Obama and John McCain continue to battle it out before the actual election in November. Barack Obama and Joe Biden remain on the Democratic ticket. John McCain and Sarah Palin are the Republican’s choice. Barack Obama has just gained his first clear lead of John McCain. It appears as though the state of the economy is having a negative affect on John McCain’s ratings.

The Washington Post-ABC News national poll has just been released. This poll shows the clear lead that Barack Obama has over John McCain. Only 9 percent of the people who took the poll rated the economy as either excellent or good. This is the first time that number has been a single digit number since before the 1992 election. Only 14 percent of the people polled said the economy was headed in the right direction. This is also a record low number. The last time this number reached such a low percentage was back in 1973.

Apparently, votes are more confident in Obama’s ability to readjust the economy than they are with McCain’s. Obama’s financial platform has clearly given him the lead of McCain…at least for now. Voters tend to think the Obama is more in tune with the real financial problems that Americans face. The poll shows that he has a double-digit advantage when it comes to handling the problems on Wall Street. The ratings show that Obama has “won over” 52 percent of voters, while McCain struggles to hold onto his 43 percent. It was only two weeks ago when the race was virtually neck and neck. That goes to show you how bad and drastic things have gotten in only two weeks time.

Voters are putting more emphasis on the economy now than ever before. Regular people, like you and me, want to see a change in the economy. A change for good. People are worried that the “Next Great Depression” is right around the corner. Voters want to be assured that their financial situations, their jobs, their careers, etc are going to be protected. Apparently, voters are more comfortable with Obama’s promise to re-stimulate the economy.

The poll shows the 52 percent of people are extremely concerned with the way the economy is going. These people “believe the economy has moved into a serious long-term decline.” College students have again turned the tide of the race. White people who do not have college degrees support John McCain by 17 points. Obama is supported by white people who do hold college degrees by 9 points.

The economy will continue to be a major factor in the 2008 Presidential Election. Take the time to study each candidate and vote for the one who has the strongest values that correlate with your own. Let’s make sure we elect a competent President who can turn the economy around, whether that be Obama or McCain.

President Bush addressed the issue of our failing economy to the entire country on Wednesday night. His address was mainly a warning to all Americans and especially those lawmakers who are reluctant to pass his $700 billion bailout plan. President Bush warned that if this plan is not passed, jobs will be lost, businesses will be forced to close, retirement accounts will fail and our country will be headed towards a “long and painful recession.”

Our economic problems have surpassed President Bush’s ability to correct the problem. In fact, President Bush extended invitations to both presidential candidates, Barack Obama and John McCain, to work out a compromise. One of the aforementioned men will “inherit” the weakened economy in just four months. Key congressional leaders were also invited to help solve the problem.

President Bush stated, “Without immediate action by Congress, America could slip into a financial panic and a distressing scenario would unfold.” President Bush expressed his concern for our troubled economy. He is welcoming advice and recommendations from both political parties. However, he said that he would not put any regulation in force that would prohibit economic growth.

The Bush administration’s bailout plan has already been met with extreme skepticism. It was announced just last weekend, and has already undergone a massive amount of controversy. Americans and lawmakers, on both sides, are very concerned about the impact it will have on American taxpayers and the entire private sector. Many wonder whether the timing is right to enact such a large plan. Similarly, many people are concerned with the massive amount of debt the plan entails.

President Bush addressed these concerns. He stated that he was extremely hesitant to put taxpayers money on the line to help failing businesses. Critics of the plan have been concerned that taxpayers will have to bail out individual companies and struggling businesses. Bush stated that individual companies are not the main focus. He also tried to put Democratic fears at ease about whether the CEOs of these failing companies will be rewarded. They will not, he said.

Bush understands that this country faces the largest financial crisis in decades. Because of this, he pleaded with Americans everywhere, especially lawmakers, to accept this plan. Senators Obama and McCain also issued a joint statement urging lawmakers to act and to act promptly. Something drastic must me done if our country wants to rebound quickly from the negative effects of a failing economy.