American Credit Card Debt is Higher than Ever

The new financial reform laws that have been enacted have not done nearly enough to curtail the unethical practices of lenders and credit providers. This is the time when Americans most need to borrow money and unfortunately, credit card providers are turning their backs on the American public. Billions, if not trillions of dollars in profits have been made by credit card providers and banks and much of it through unethical if not downright illegal practices over the years at the expense of consumers. The new laws have made a slight dent but they were so watered down that credit card companies have easily found loopholes that they can sail their money-making ships through and continue to grow fat and rich off their customers.

American credit card debt is at it highest level of all time even though interest rates have shot through usurious glass ceilings, leaving many cardholders desperate for relief. Although the laws have changed and credit card companies can’t just raise rates like they used to for no reason at all, the new laws still allow them to do just about whatever they want and get away with it. With American credit card debt saddling this nation’s consumers, our economy will continue to deteriorate and the top 1% will continue to get richer and richer.

The reason is simple: our Congress, sworn to protect our rights, has long ago abandoned their constituents and embraced corporations and their campaign contributions. Lobbyists for credit card companies basically took over the halls of House and the Senate for weeks and months prior to the voting on the new laws. Consumers really had no chance at all since they did not have a legitimate voice shouting for them against the lobbyists. Where is Ralph Nader when we need him most?

These very same credit card companies were the source of today’s impossibly massive American credit card debt. These numbers are so staggeringly large that it seems impossible to conceive of any way to eliminate the debt. In past years, when mortgages were easier to get, Americans saddled with high credit card debt would just refinance with enough cash-out to cover paying off their cards. With today’s home values much lower than in years past, most homeowners do not have the equity necessary to borrow money against their homes. American credit card debt seems destined to continue to grow as people get even more credit cards, take out cash and pay off old bills. “Borrowing from Peter to pay Paul” is the old saying and it fits very well in this scenario.

Until lending institutions stop charging late fees, over limit fees, and all those other ridiculous fees that they hit consumers with, American credit card debt will continue to skyrocket out of control. We have seen already what irresponsible practices like these have done to the mortgage industry. Although banks say they are “too big to fail”, what will they do when Americans just run out of money altogether? Isn’t America itself too big to fail?