February 12, 2012
/24-7PressRelease/ -- Credit card debt has become an epidemic in the U.S. According to the Federal Reserve, U.S. consumers carry $793.1 billion in revolving debt, 98 percent of which is credit card debt. According to creditcards.com, the average amount of debt per household is $15,799.
The amount of debt, unfortunately, is the result of not only amounts borrowed but huge interest rate fees. Luckily, some members of Congress have introduced legislation in hopes of helping consumers unable to pay down their credit card debt.
Details of the Bill
Introduced by Sen. Sheldon Whitehouse, a bill entitled the "Empowering States' Rights to Protect Consumers Act" was introduced this past November. The bill would allow states to limit the interest rates that credit card companies could charge their residents. The new law, if passed, would overturn a 1978 Supreme Court decision holding that the interest rates of nationally-chartered banks could take precedence over the various states' interest rate laws.
Implications for Consumers
Sen. Bernard Sanders stated in a press release that more than 25 percent of all credit card holders pay interest rates above 20 percent on the debt they carry on the cards, and some pay as high as 59 percent interest. Such steep interest rates can make it impossible for consumers who fall behind in one or more payments to ever catch up and regain their financial footing.
Through the new law, individuals
fighting to pay credit card debt in Arizona, for example, may soon see relief from unconscionable interest.
However, the proposed bill is still a long way from becoming law. In the meantime, many consumers are still facing high interest rates and struggling to keep up with their debt load. Thankfully, bankruptcy can be the blessing in disguise for many of these individuals.
Article provided by The Roll Law Office, PLLC
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