Considering that the average American household carries a $12,000 balance on revolving accounts, and over 2 million Americans are projected to file for bankruptcy in 2010, it isn’t surprising that many Americans are in dire need of credit card debt relief and assistance from a professional debt relief service. What isn’t as obvious is who is really responsible for this problem- is it the greedy banks, the federal government’s lax attitude towards the credit card industry, overspending consumers, or a combination of all of these factors?
Credit Card Companies
Consumers are bombarded daily by over 3,000 marketing message on average, many of them solicitations for credit card applications. Many college students- already looking at years of debt they cannot repay in a poor job market- are tempted to sign up for credit they cannot afford.
Credit card companies prey upon the American consumer for their own profit, using 0% offers and promises of gifts just for submitting an application. Credit card companies lure many consumers in. Then they use even the smallest mistake or delayed payment to adjust the interest rate, making it virtually impossible for many to pay down their debt. If you should miss a payment, the collection calls and late fees begin. Credit card companies have also used their lobbying clout to make debt relief more difficult for consumers.
Given the backdrop of a culture that encourages materialism and instant gratification, it isn’t surprising that bankruptcy filings and credit card figures are so staggering. America’s debt dilemma simply wouldn’t be as large if consumers weren’t spending so much more than they earn. This is also complicated by our society’s attitudes towards consumer debt and spending. Until this culture changes to one that rewards and encourages responsible spending and saving, the debt problem will only grow.
In recent years, banking deregulation and consumer usury laws have contributed to the problem. And the credit card industry continues to profit to the detriment of America’s fiscal health. Congress has bent over backwards to accommodate the credit card industry at the expense of the consumer, and they continue in failing to address the negative implications of consumer debt on families.
The Overall Economy
With the cost of living increasing and wages flat, consumers have increasingly relied upon their credit cards to keep up. Many consumers are increasingly turning for help from a debt relief service.
A guest article from GetOutOfDebtPlan.org