Obama Talks about Credit Card Debt and Bankruptcy
Presidential hopeful Senator Barack Obama is hoping to win over voters and is using every angle to convey that he can relate to the American people. He recently outlined his plan for the economy and has a lot to say about consumer credit card debt and bankruptcy.
Obama says that Americans are not completely to blame for the high amount of credit card debt that burdens them and pushes more people towards filing bankruptcy every month. According to a report by Cybercast News Service, Obama says that a lot of people have been financially pushed over the edge by the banks who issue credit cards.
The banking industry says that they are not to blame for consumer overspending and the poor economy. In fact, the American Banking Association would have us all believe that credit card debt is really not an issue for most Americans. According to the ABA website, only 46 percent of families in the U.S. carry a balance on their credit cards and 54 percent of people pay their credit card balances in full each month.
During his speech in Chicago, Obama said that he thinks that there is a government solution to the problem of crushing consumer credit card debt. He acknowledged that the sinking economy has had a devastating effect on many Americans and that more people are now forced to utilize credit cards just to get by month to month.
Click Here For a Free Bankruptcy Evaluation
Although it can't be denied that some people are to blame for debt that was racked up by buying luxury items they knew they could not afford - and Obama also acknowledged this - many people are in debt because of unfair and deceptive practices by credit card companies. Obama said that people with credit cards are forced into debt by credit card companies that require them to sign long, complex contracts that are filled with clauses and jargon that only a bank executive could possibly understand. He said that Washington has let the credit card companies get away with strong-arming Americans out of cash because the companies spend big money funding political campaigns and lobbyists to influence lawmakers to make laws that are favorable to them.
Obama said that he would protect Americans by cracking down on the credit card companies that use deceptive practices. He said that Americans need a president who will look out for the interests of hardworking families instead of the interests of credit card companies that provide funding for campaigns. Obama said that the GOP presidential candidate, John McCain, sided with the credit card companies by supporting a bankruptcy bill (The Bankruptcy Abuse Prevention and consumer Protection Act of 2005) that he had opposed.
According to Obama's website, he has a lot of ideas to help Americans who are struggling financially. He plans to rework federal bankruptcy laws to protect the working class and people facing a medical crisis and cap interest rates on payday loans while encouraging legitimate lenders to make small loans.
Click Here For a Free Bankruptcy Evaluation
Recently during the Tony Rezko controversy, there has been a buzz about Obama's ties to subprime mortgage lending. In 2005 Obama and his wife purchased a home for $1.5 million. However, according to the Obama's 2004 tax returns, their income was $207,000. At this time they also owed over $100,000 in student loans. These figures have caused speculation that Obama may know about subprime mortgage lending from personal experience, as the Obama's income would have excluded them from a mortgage loan of this size through traditional lenders.
So when Obama speaks about going to bat for the American people on financial issues such as bankruptcy reform, credit card debt and subprime mortgage lending, perhaps he has some degree of personal insight. Whether or not he is equipped to deal with these issues or will have the opportunity to address them as president remains to be seen.
Related:
Presidential Candidates on the Struggling Economy