Totally overshadowed by the healthcare reform debate, an important new credit card law took effect this week. From now on whenever your credit card company wants to raise your interest rates they must first ask your permission in writing 45 days in advance. Note: failure to respond to the request constitutes a "yes" answer.

If you decline the request to have your interest rates raised the credit card company will have two options:

1. Double your previous minimum monthly payment.
2. Close the account and place you on a 5 year pay-off plan.

In February phase two of the law takes place. Credit card applicants will have to be at least 21 years of age or will require a parental co-signer. Also, over the limit penalty fees will be outlawed; instead if you don't have enough available limit on your account and try to make a purchase the card will either be declined at the point of sale or if your credit card chooses they may increase your available limit at the point of sale depending on how much they like you.

A good friend of mine who normally opposes President Obama and helps organize tea parties supports this law despite the fact it was introduced by President Obama. He said he first and foremost supports what's good for the American people and this law does that.

Many people who want to reduce and possibly eliminate their debt are moving toward pre-paid debit cards. Unlike bank account attached debit cards that will give you the equivalent of a NSF charge if you aren't careful and could tie up all of your money in a dispute, a pre-paid debit card is totally separate from the money you use to pay your bills. A friend of mine uses and recommends the Wal-Mart pre-paid debit card. It has a Visa logo so its accepted anyplace that takes Visa cards. You can add money to it at any Wal-Mart store for a nominal fee. I like the PayPal prepaid debit card. Its the only one I'm aware of that's totally free to use. It has the MasterCard logo and you add money to it online by logging into your secure account and tell it to electronically transfer funds from a regular bank checking account. They get paid when someone other than you sends you money but as long as you send money to your card yourself there's no charge with the PayPal MasterCard debit card.