While many consumers are trying to reduce debt and get a better hold of their finances, some of the nation's top credit card lenders may soon be able to help with that debt relief thanks to new documents that make borrowing agreements easier to understand.
Major banks are now starting to issue simplified documents for checking accounts, which clearly list the terms of the agreement in plain language, and it's expected that credit card contracts will come next, according to a report from the Columbus Dispatch. These financial institutions are likely taking the lead of the new federal Consumer Financial Protection Bureau, which itself is testing a simplified lending agreement at the Pentagon Federal Credit Union.
That document is just 1,100 words long, compared with the average of current credit card agreements that checks in at more than 5,000 words, the report said.
The CFPB is also working to set up a comprehensive database of all credit card offers available nationwide so that consumers can compare a number of accounts to determine which will help them limit their credit card debt.