We Need To Control Credit Card Debt

Monday, December 3rd, 2007 at 8:12 pm

According to democrat Barack Obama credit card companies deceive consumers into piling up massive debt they have little hope of repaying. He called for new restrictions on what he termed "predatory" companies.

"The truth is, our middle-class families are not going to be secure so long as they can't get out of debt," Obama said Monday, in a presidential campaign speech Monday. "If we're serious about stopping Americans from falling deeper in debt, we've got to crack down on predatory credit card companies that are pushing them over the edge."

Obama pointed to studies showing that consumers have an average personal debt of more than $8,000, a load driven higher by credit cards. He said soaring credit card debt could turn into a crisis as big as the one in the subprime mortgage industry.

Obama feels that "The larger risk is that what's happening in the housing market could lead to a slowdown in the entire economy,".

And he may have a point. There are some on the other side of the debate that assert the credit crunch in America and in particular the credit card debt really is not as bad as it seems. They point to the percentage of personal debt and claim it really is not too bad.

And yet, more people file bankruptcy and more and more Americans are losing their homes to foreclosure. This cannot be ignored and in large measure it is a direct result of piling up consumer debt on top of consumer debt.

There is no problem with our debt ratio in a healthy, growing economy. Unfortunately, that is something we do not have and may not have for some time.

If you are trying to buy a new home or save the one you have, you really need to get a handle on the credit cards.

A great resource that I can recommend to help you out of the hole is the Credit Secrets Bible. It is the option I recommend for most people to "do-it-yourself". We’re not talking brain surgery here. Many credit repair companies try to make the process overly mysterious in order to justify their big bill. With the guidance, forms and letters contained in the Credit Secrets Bible you can “do it yourself”. The main requirements are that you can read and write at the 7th grade level. And have a willingness to follow through.

You can also claim a free copy of The Credit Secrets Mini-Book by simply right clicking the link and “Save As”.