Credit card rules may have drawbacks

The new rules for credit cards require issuers to provide information on how long it will take to pay off your balance if you make minimum payments.

For example, if you owe $3,000 and your interest rate is 14.4 percent, your bill might look like this:

• New balance: $3,000

• Minimum payment due: $90

• If you make no additional charges using this card and each month you pay only the minimum amount, you will pay off the balance shown in about 11 years.

• If you make no additional charges using this card and each month you pay $103, you will pay off the balance shown in about three years.

• If you make no additional charges using this card and each month you pay only the minimum amount, you will end up paying an estimated total of $4,745.

• If you make no additional charges using this card and each month you pay $103, you will end up paying an estimated total of $3,712. That’s an estimated savings of $1,033.

Source: The Federal Reserve