During the holiday months, it can be so easy to mindlessly use your credit card when paying for gifts and groceries. By doing this, many people lose control of their debt, and they suffer as a result of the high-interest rates on the debt.

If you are feeling stressed about the credit card debt that you have acquired, it is important that you learn more on the rights and benefits available to you under the law. One law that you will likely be able to benefit from is the Credit Card Accountability, Responsibility, and Disclosure Act (the CARD Act).

How does the CARD Act work?

The CARD Act seeks to protect consumers from unfair actions taken by credit card companies. The act has been in place since 2009, and a study conducted in 2014 found that consumers across the U.S. are saving a total of $11.9 billion per year as a result.

One of the demands of the act is that credit card companies must warn all credit card holders of a significant change to the terms, including interest rates, at least 45 days in advance. In addition, if you already have credit card debt, your interest rate on the existing debt cannot be increased.

As a credit card holder, you also have the right to close your credit card account with no penalty fees. You will not be ordered to pay off your debts in full upon the account closure; however, you may be subject to increased monthly repayments.

If you are stressed because of credit card debts, you should take action to learn more about your legal rights.