Why America Needs Debt Settlement
The Credit Card Industry:
Bravely Forging a New Economic Class

Lifetime Debtors: A New Class Created by Credit Card Industry

The new bankruptcy legislation that passed in 2006 was created under the direction of the credit card industry, just as this country’s energy bill was written by Energy Traders and the Big Oil companies.

The big credit card companies, through their lobbying efforts, passed new bankruptcy legislation, hoping to create a new socioeconomic class - a class of debtors. The credit card industry is seeking to create a class of perpetual, long term, barely able to make minimum payment debtors, and they’ve almost succeeded. NBC News reported during the week of October 16 that the "Average Household Debt" in America was $12,000.

Wilma Flintstone and Betty Rubble Said it Best - "Chaaaaarge it!"

Americans all over the country are currently being given lines if credit that they cannot possibly sustain. Since their debt cannot be discharged, thanks in large part to the new bankruptcy legislation that makes it next to impossible for anyone not currently living below poverty level to discharge one's debt's using a traditional Chapter 7 Bankruptcy, people are forced to pay the debt, interest and all. A "means test" must now be administered to each person seeking to discharge their debts under a chapter 7 and if it is determined that your income is above the average for the state in which you live, or that you can afford to pay more than $100 per month to your creditors after all of your reasonable expenses are taken into consideration, then you will probably not be allowed to file a Chapter 7.

Where Has the Middle Class Gone?

Once upon a time in America, there was a class structure that included everyone in the country. There was an upper class, a middle class and lower class. Industrialization helped to blur the lines between these classes, giving new opportunity to hardworking members of the lower and middle classes to aspire to and actually reach the level of the upper class. Soon, new class designations were needed to accommodate the narrowing gap between the classes. Eventually a new naming hierarchy included upper class, upper middle class, middle class, lower middle class, and finally lower class.

The credit card industry and their successful D.C. Lobby has apparently served as a template of sorts, paving the way for usurers in the garb of legitimate businesses to open companies that offer Payday Loans, Cash Calls, and other loans that charge exorbitant interest over and above that of your friendly neighborhood loan shark.

These people pray on the poor and uneducated with slogans and TV ads that make promises like "Get $10,000 cash for $200 a month!" They don't explain the interest rates or the length of the loan on these flashy TV ads. Truth be told, the credit card companies are no better than these usurers. The latest TV ads like Chase's, that use the song "I'm Free" by the Rolling Stones is suggesting, however subtly, the Chase card is free money. Another company uses the Beatles "All You Need is Love," as though one can live on love. It seems even the world's wealthiest musicians have become greedy in today's money driven culture and are leasing their songs to creditors.

Debt Settlement Can Restore Your Economic Balance

Once a person or family has begun the downward spiral of using high interest credit cards to pay daily expenses and monthly bills (unless you pay off the balance completely every month), it is very difficult to recover. This is called “Bad Debt.” Very strictly speaking, “bad debt” is any debt on a high interest credit card that is a purchase of services or durable goods that begin to depreciate the moment after you make the purchase.

If you have found yourself in this position, where you are using your credit cards to pay bills or daily expenses, please give us a call. If you are having trouble making the monthly payments on your credit cards, please contact us.

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