Will Credit Card Debtors Get Government Aid?
November 24th, 2008 | by admin |
While much has been said of the current financial situation in terms of mortgages and homeowners, other types of debtors have been neglected. Though it is certainly true that mortgages and banks failing are the story in this failing economy, it is equally true that bad consumer debt has played a role in hurting the economy and causing people to lose their homes.
You might not hear about it as much on the news, but credit card debtors are in just as much trouble as those folks who lost their home to foreclosure.
Much of this problem has come as a result of an alarming and disturbing trend among Americans. These days, people are spending money that they don’t have and they are willing to run up big debts. They think that they will eventually have the money to pay off these debts, but the credit card debt cycle just keeps them in check and they never seem to get that big paycheck that will pull them out of debt.
With that in mind, what is being done for these people? Is there any light at the end of this particularly ugly tunnel?
If you are in credit card debt, don’t look for there to be any government bailout for you in the near future. The government has shown the willingness to help people who are losing their homes, but they don’t seem willing to help you pay for the shopping spree that you took a few months ago.
The government is seeking to knock out the problem from the top and let the positive effects trickle down. They want to make sure that the banks and the mortgage lenders are in good shape so that the economy can be restored and people can once again invest their money with confidence. Though it might sound harsh, the plight of small Americans with credit card debt is not anything that the government is overly concerned with.
This could change a little bit in the coming weeks, though, especially for those customers who are with American Express. In the ever-present banking shakeup, Amex is moving over into the banking industry. This means that they will probably be receiving government assistance of some kind. Though this is good for the company itself and it should help them prosper, don’t expect it to do too much for people with common credit card debt.
Those folks will be left to do what they always do, and that is struggle under the burden of credit card debt that is too much to handle. Though it is an ugly problem that is every bit as big a cause of the current economic problems as the housing breakdown, there does not seem to be any easy way for the government to bail people out of these debts. Because of that, they will stand.
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3 Responses to “Will Credit Card Debtors Get Government Aid?”
By opra on Nov 25, 2008 | Reply
Lots of people used HELOC to pay for their huge card debts and many paid for their mortagage with credit cards - it’s a closed disk. However, while home owners have the largest asset to lose, a cardholder only risks falling into a debt abyss and endless payments to the bank, unless they decide to file for bankruptcy. It’s up for them to choose how to cope with the numerous bills piling up as a result of unlimited spending and limited financial resources.
By David Miller on Nov 25, 2008 | Reply
I agree that help with credit card debt will not come from a bailout to consumers. And with banks in trouble, they and third party debt collectors will only get more agressive in their debt collection efforts. Fortunately I’ve run across a company, The Credit Card Solution, based in Houston, that has an effective plan for fighting these debts. So, without government help on the horizon it is every man for himself. But to help yourself you need knowledge of your rights, that’s why I recommend that debtors in serious trouble check out the free videos by Bob Lindsey, president of The Credit Card Solution.
By chris on Dec 16, 2008 | Reply
this is nothing short of a disgrace.While american productivity shot up the average working persons wages declined the profits went into the pockets of upper management and the corporate aristocracy all while the costs of fuel clothing utilities and other neccesities also skyrocketed.At the same time our government allowed the credit card industry to rape the american people through unreasonable fees interest rates and other charges that’s why the average american is in trouble not shopping sprees.