Credit Cards devastate Americans.

Byron Dorgan (Dem. - North Dakota) was on C-Span this morning to discuss the elements of the Senate's upcoming Credit Card Bill.  I'm not sure what he thinks he can accomplish, but at the very least, he is making us aware that the CC companies are big players in the screwing of the American Economy.

Some points:

- The average credit card debt for American households is $10,000.00.

- 80,000 new credit cards were solicited last year, many to students and people  
  without ongoing employment security.

- People who have ALWAYS paid their credit card debt 100% on-time are now seeing
  their standard interest rates raised from 7.5% (avg) to 27% or more.

Even debit cards, which have always been billed as "same as cash", are seeing new fees added on by banks and card companies.  Dorgan is insistent that it is the responsibility of the government to protect Americans from this brouhaha by regulating fhe industry.

"Why should we allow these companies to target children with credit cards?" asks Dorgan. "There's a lot to these companies that needs to be reined in."

This is something I agree with... and I'll be very interested to see the Senate's debate this week... and I wonder what the anti-legislation folks (banks, cc companies, Republicans) will do to make themselves appear fair and concerned with the health of America's wallet.

Under The LobsterScope

Tags: credit cards, Debt, Economy (all tags)

Comments

3 Comments

Re: Credit Cards devastate Americans

I disagree with the sky high rates and I totally think there should be some means test as to who they can and can't sign up and how much credit they should extend.   Extending 1000s and 1000s of dollars to college kids is crazy.

BUT nobody puts a gun to someone's head and says "go to Macy's."   Or tells them to use their credit card to live like they make 'x' when they only make 'y'.

by RichardFlatts 2009-05-19 01:07PM | 0 recs
Medicaid Loan expansion..

We need a different healthcare option for poor people that is not a loan..

the Dems are making a huge mistake to pile more debt on poor people.. What are they hoping, that people wont go to hospitals because they are afraid of the loans?

by architek 2009-05-24 05:48PM | 0 recs
Re: Credit Cards devastate Americans.

I think the problem with credit cards is pretty much similar to the problem with guns, only guns have no useful purpose whatsoever. Give a gun or a credit card to an idiot who has no real concept of the inherent danger of even possessing one, and the outcome is quite predictable. We can blame the plastic or the people who push it, but ultimately the responsibility rests on the bonehead who uses the things irresponsibly.

So, yes, Credit Cards devastate Americans, but so does their pudenda, quite often. So keep it in your pants, America!

by QTG 2009-05-19 01:13PM | 0 recs

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