Credit card reform may launch a new view on money

The United States Senate is currently debating a measure that would greatly restrict credit card companies’ ability to conduct business in the way the companies have become accustomed to: stripping away what little money the poverty-stricken consumers have as minimum interest payments.

Despite my undying support for a capitalist economy without governmental interference, I have to agree with the senators on this one – if not for my own selfish irresponsibility, then for every debt-ridden citizen who might be aided by this bill.

The majority of my life, or at least since I learned what credit cards are, I have believed that people are responsible for their own debts. My father always said it was stupid to buy anything if you cannot pay for it; he also told me that silence was golden and if I ever shut up I would get rich.

Credit was established in this country so that consumers could afford to purchase things that they desperately needed but could not for in one installment – things like houses, automobiles, home appliances and Disney World vacations. All these have become the backbone of this consumer-driven economy.

But apparently Americans cannot handle the responsibility of paying off the debts they have incurred anymore, not that many of them could have before this great recession.

The Senate measure being discussed at the moment would prohibit credit card companies from raising interest rates on existing balances unless the card holder is 60 days behind in payment. It would also restore said interest rates back to normal once payments have been on time for six months. It would also require notification of rate increases at least 45 days in advance, and companies would not be allowed to charge late fees if payments were late in processing.

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Credit card reform may launch a new view on money