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- Looming credit card fees
- Short term gain – long term pain

It's been revealed recently that the UK government has cast the first stone in the fight against personal debt. It has called upon the credit card companies to reform their current system for charging cardholders fees and interest. The credit cards companies have been asked to create a new set of "principles" that will ensure the bring-down of ever-rising consumer debt.

So what's the plan? Set to come into effect 1 January 2009, card holders in the UK will see new "rules" aimed to reduce credit card debt.

For instance, UK credit card companies will now not raise interest rates if:

• A customer fails to make minimum payment for more than one month;
• A Customer already has in place a repayment plan with his/her credit card company; and
• A customer is currently in discussion with a debt advice firm.

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The United States (US) is releasing information about its own set of golden rules. The US rules are ostensibly different, but seem to provide its credit card holders relief in these tough times.

So which set of rules is more likely to succeed? The UK is leaning more towards a focus on keeping interest rates under control. A foreseeable approach as the word “interest” is common and thought to be understood by most. The US however is looking more to reform the complex nature of credit card statements and payment dates. The US is proposing changes such as:

• having new dates on credit card statements that will let the consumer know exactly (to the time of day) when their payment is due if they wish not to pay interest; and
• Removing double-cycle billing (retroactive interest charges).

In one way or another, both sets of rules will help control existing and new debt. The US however is offering some solutions that will help the credit card holder gain more understanding of what they owe and when they owe it. The UK missed the mark here as there is no mention in that set of rules about making the card holder more aware. These rules however will not take effect until sometime in 2010.

However, the UK is addressing the important problem of interest and is making the effort to push these change ahead as soon as possible.

Although different, both countries’ rules should offer some relief to consumers. It is hard to believe however that even though a lot of countries have similar credit card problems, they can’t seem to agree what needs to be done. Keep an eye out for these changes in the New Year and don’t hesitate to contact your credit card provider and ask them questions and get more details on these new “fair principles”.