The question of where the credit card debt crisis came from may finally have a clear-and uncomfortably unavoidable-answer. The initial questions were being framed over three years ago when the US Congress was debating a reformation of bankruptcy law. The question that struck a nerve for many legislators and economists alike was whether the problem stemmed from the aggressive and liberal activities of credit card companies giving out cards left and right or was it simply the irresponsibility of the American people themselves.
Of course, is it really as simple as placing blame on one part or another? Maybe, the truth is that the problem is a much broader societal problem. Whole society, American consumers and card companies alike must be taken into account. In fact, they will be.
Thankfully, there are signs that many people are waking up to the reality of out of control credit card spending and resultant debt loads. It is especially promising with the holiday season closing in. More consumers are opting to keep the credit cards in their wallets or purses and looking for creative and economical ways to give gifts to their friends and loved ones.
Current estimates place the national credit card debt at about $900 billion. In other words, two-thirds of the US economy is linked to consumer spending. With the economy behaving the way it is, most are expecting a significant retail downturn despite the government’s efforts to keep consumers spending money.
In such perilous times, the unofficial national policy remains “Spend, spend, spend!” No one want to see the entire economy spiral farther down.
The administrations’ recent suggestions regarding more programs design to reinvigorate the economy, proposals of upwards of $800 billion are all meant to help the country as a whole, but also help ailing credit card companies.
Related Articles
- A New Perspective On Credit Card Debt Credit card debt has long been a hallmark of the average American. Everyone walks around with credit card debt even as they pull out their trusted cards to charge
- Obama Administration Stimulus Plan Slow On Results For Economy With all of the talk about the efficacy of the enormous, $787 billion stimulus package, the more important question has escaped public focus. The broader question, raised by many
- Stocks Slide As Government Opts Not To Buy Bad Debt With the decision to hold off using the $700 billion rescue package to buy bad mortgage assets, U.S. stocks suffered further slides, increasing the apprehension of many investors regarding consumer
- Consumer Loan Program May Be Necessary In a recent announcement, Federal Reserve Chairman Ben Bernanke said that a consumer loan program that was created to stimulate lending to business and consumers alike is still needed despite
- Consumer Lending Shares Rise Due To New Debt Plan According to recent reports, the share of consumer lenders and student loan providers experienced significant gains in the stock market following the announcement by government representatives that the US government
