In the past, many credit card companies deliberately made it difficult for customers to pay their bills on time. Thanks to a new bill that recently became law, credit card companies have some new responsibilities.

These include:

Credit card companies used to be able to change their payment due date every month, making it much more difficult to pay on time. Now credit card companies are required to have the payment due date on the same day every month.

Credit card companies used to send their monthly statements less than 21 days before the payment was due.

Now they are required to mail their monthly statements at least 21 days before the payment is due.

Credit card companies used to charge a stiff fee every single time people went over their credit limit.

Now, credit card holders will need to opt-in to give permission to the credit card company to process transactions that go over the credit card limit.

Note: It is not a good idea to do this. If you are charging over the amount of your credit card limit, you’re spending too much.

In the past, credit card companies told people how much their minimum payment was, but not how long it would take to ever pay off their balance if they only pay the minimum payment every month. Why? Because it benefits the credit card companies to have people only pay off the minimum payment every month.

But is credit really a necessity of life?

Remember, credit cards haven’t always existed. Before the 1960s hardly anyone had them and it wasn’t until the 1970s that their use became widespread.

If you don’t have credit cards or the ability to borrow, what does that mean? It means that you can only buy things that you can truly afford.

Yes, we all WANT a bigger, newer TV, a new wardrobe every season, a visit to the best salon in town, a vacation by the sea every summer and a ski trip every winter, $200 workout shows…but we don’t need them. And if we can’t afford to pay for them, should we borrow money and go into debt to do so?

If you want to buy plane tickets and rent a car…get a debit card. And make sure that you have the money in your account before you try to purchase anything.

Get used to shopping consignment stores, thrift stores, and discount shops like Costco or Sam’s Club.

If you need money and don’t have enough in your bank account…work longer hours, get a second job, or sell off some of your possessions. There is no such thing as free money – any money that you borrow now, you must repay later or your credit will again be ruined.

And if you pay for something yourself, all at once, you are paying the real price for that item. If you pay for something on credit, you may pay two or three times the price of that object over the lifetime of the loan.

So if you’ve trashed your credit, don’t be so quick to try to qualify for new credit cards again. Life without credit can be better than you think. It’s certainly better for your finances.

Now, your goal should be to pay everything off immediately and not use credit if at all possible,  but sometimes credit is necessary.

Furthermore, bad credit can prevent you from getting hired at certain jobs, from renting a car, even from getting a cell phone.

So it is important to rebuild your credit.

To do this:

Pay your bills on time. Make this your top priority. Pay them a week early so that you are SURE that they arrive on time. If you literally do not have enough money to pay them off on time, you need to either take on a part time job for extra money,  sell possessions, liquidate assets, or negotiate with your credit card company.

Get a secured credit card and ALWAYS pay it off on time. Charge very small amounts and then pay them off. You can carry a very small balance if you want – $10 or $20 – but NEVER make your monthly payment late. After a year of always paying off on time, apply to change it to an unsecured credit card.

Make it a priority not to charge more than 30 percent of your available credit. If you have charged more than 30 percent, make it a priority to pay that down first. Your credit rating goes down when you have less available credit.