Lowell, MA -- (SBWIRE) -- 02/06/2013 -- Not everyone is happy about having a credit card. Where there was excitement before about spending in plastics, now the populace is having big problems about credit card bills. As more and more Americans are downed with personal credit card debt, the government is fast on its heels trying to solve the problem. But are we really progressing towards that end?
In a recent research done at Ohio University, it was found out that younger Americans not only take on relatively more credit card debt than their elders, but they are also paying it off at a slower rate.
"If what we found continues to hold true, we may have more elderly people with substantial financial problems in the future," comments Lucia Dunn, co-author of the study and professor of economics at Ohio State University. Dunn conducted the study with Sarah Jiang of Capital One Financial in McLean, Va. The outcome of the said research was published in the January 2013 issue of the journal Economic Inquiry.
Mishandling of credit card debt hurts our credit score more than our bigger obligations such as housing loans or student loans, according to the Consumer Financial Protection Bureau?s new report on the credit scoring industry. Richard Cordray, Bureau Director of Consumer Financial Protection, said ?If they are not responsible with that one card, it could end up costing them a lot more down the line when they go to take out a mortgage and that credit card is a black mark on their credit report.?
The problem of consumer harassments from collection lawyers has reached the concerned government agencies. In response to that call, the Fair Debt Collection Practices Act was put in place in order ?to prohibit abusive practices by debt collectors?. This is also an opportunity for consumers to ask for validated credit information in order to guarantee that the claims are correct and accurate. Otherwise, consumers have the right to deny or dispute the said debt.
The need to educate the consumers on his or her rights comes to the fore because people can only act according to their knowledge. A campaign to increase the awareness regarding the pitfalls of indiscriminate credit card use should be in order. Financial literacy is not taught in school and a lot of people succumb to the temptation of cashless purchase simply because they are ignorant of the math behind it.
About Shortsentences.org
Shortsentences.org is a website dedicated to provide valuable information regarding personal finance, credit card and credit card debt relief. The author feels very strongly about helping people get out of debt.
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