You may have heard that the CARD Act of 2009 now requires credit card companies to apply payments towards balances with the highest interest rate first. While this is true to a certain degree, there's been quite a bit of confusion among consumers regarding how the rule actually works.
Unfortunately, what most people fail to understand is that the new change only applies to payments made in excess of the minimum amount. So, if you're stuck barely making minimum payments on your credit cards, don't expect to have those payments applied directly to balances carrying the highest interest rate. That won't happen until you start ponying up enough cash to surpass the minimum payment amount each month.
To learn more about how the new credit card rules might affect you, check out "The Credit CARD Act of 2009: 5 Must-Know Nuggets" for a brief summary of the changes that will likely affect your wallet the most.
