Sunday, December 11, 2005

Bankrupt? Have a Credit Card!

New York Times:
Under the new [bankruptcy] law, which the banking industry spent more than $100 million lobbying for, [the newly bankrupt] may be even more attractive [to credit card companies] because it makes it harder for them to escape new credit card debt and extends to eight years from six the time before which they could liquidate their debts through bankruptcy again....

...Consumer groups say the new law has put millions of Americans at risk of being in a continuous debt loop through their credit cards.

2 comments:

CreditWise said...

Unfortunately, all taken measures at the banking industry are looked to profits for credit card companies. Apparently, they issue credit cards to help not people but themselves. So, all of us should be more cautious.

Maggie Spicher said...

Just came across this post and want to say how things have changed since the year of 2005... Bankruptcy legislation has not yet achieved the goal - reduce bankruptcy rate.