The credit card industry is going through some changes. New government regulations are slowly being put into place. These new rules could help you pay off your debt more quickly. And they certainly offer some great consumer protections. These new regulations are part of the Credit Card Accountability, Responsibility and Disclosure Act which goes into effect bit by bit from now until February, 2010.

A large portion of the new rules revolve around a banks ability to change a cardholder’s interest rate. When a bank raises your interest rate it can drastically affect your ability to pay down or off your credit card debt. Many of the rules also address billing, fees and who may get credit cards. The new rules (that do not necessarily apply to credit cards with variable interest rates) include:

1. No raise in interest rate the first year the card is issued.
2. Issuers may not raise rates on existing balances.
3. Due dates may not change; they must remain on the same day every month.
4. Bills must be delivered to the customer’s mail at least 21 days before the due date.
5. Nobody under the age of 21 may get a credit card without a co-signer.
6. The bank may not raise the rate on someone under 21 without the co-signer’s approval.
7. Banks can no longer charge consumers a fee just for making a payment.

If for some reason you don’t manage your money very well and you miss a payment or two, then the bank may raise your interest rate even if you do not have a variable rate credit card. There is good news, however. If you get back on track, start to manage your money well and make payments on time for six months, then the interest rate must return to where it was originally.

So for those of you who may not be able to make the consistent payments over six months to get back to a lower interest rate, trying to settle your debt with credit card companies may be a viable option. The tomfooleries that banks were allowed to pull in the past are being eliminated. But just because the government changed these rules, savvy consumers will need to continue keeping an eye on their credit card issuers to see how they try to get around these new rules.