Fed Authorizes New Credit Card Rules in Favor of Consumers

Good news for consumers holding a credit card balance:

According to CNN,

Regulators voted to rein in controversial credit card practices. But they'll have to wait another year and a half to get relief - the new rules won't take effect until July 1, 2010.

Consumers will also be given a reasonable amount of time to make payments, and payments will be applied to higher-rate balances first, to reduce interest penalties and fees.

Credit card statements will clearly list the time of day that a payment is due, and any changes to accounts will be in bold or listed separately.

One of the more important changes is the elimination of retroactive interest. This should help consumers pay off their credit card debt sooner by eliminating double billing cycles even if the monthly balance is payed off.