Not long ago, many consumers found out some news that may have startled them. The minimum monthly payment on their credit cards was about to double. And being that one in four Americans pays only the minimum amount due on their balance each month, a lot of people could be devastated by this in the short run. In the long run, however, this will help consumers to get out of debt much sooner.

Under pressure from the Office of the Comptroller of the Currency (which regulates national banks), and the Federal Reserve, some national banks will soon be increasing minimum monthly credit card payments so they are closer to 4% rather than the current average of around 2%. Being there is an acceptable range suggested, the change might mean that the payments might be a little less than double for some, or slightly more for others. MBNA, Citibank, and Bank of America were the first to announce the change, with many others expected to follow suit soon.

Although this may come as bad news to some, to many who are currently drowning in debt, it could help them reach the shore much sooner. If you owe $2000 or more on your credit card balance and paid the minimum 2% each month, it would take you approximately 30 years to pay off the balance even if you never charged another cent. Under the new guidelines, you would be out of debt in 10-12 years, and pay a lot less in interest. If you were to make a $2500 purchase today and charge it to your credit card, at 18% it would take 34 and a half years to pay it off, even if you never charged another cent on the credit card. Over that period, you’d pay $6421 in interest, in addition to the original $2500 cost.

It is clear that these new credit card guidelines will help many people in the long run. However, the lower minimum payments have encouraged many to spend and accumulate a large amount of debt. To make things more difficult for them, this comes around the same time new bankruptcy laws were passed to make it much more difficult to file for a bankruptcy.

While things may look difficult for some, all is not lost. A good suggestion is to keep a record of all expenses for a month. You’d be amazed how a 75 cent soda each day, and other small expenses add up over time. When things are tough, eliminate any unnecessary expenses from you’re budget. With this extra cash, you can pay more toward the principal on the credit card with the highest rate of interest. You also may want to try calling your credit card company and negotiating a lower rate, and making alternate payment arrangements, if necessary. For homeowners, you may wish to use the equity in your home to pay off all of your debt and roll it into your mortgage, at a much lower rate.

Whatever you do, do not wait until your account is sent to collections. Taking the above steps before then will save you a lot of trouble and save your credit score from disqualifying you from any future loans, such as car loans or mortgages. Speaking with a credit counselor and developing a specific strategy to pay down your debts would be a smart move for most. Controlling future spending, would be a smart move for all