Issuing credit cards to college students has become one of the most lucrative ways for creditors to hook young people on debt, with their parents frequently obliged to assume the burden of repayment. There has been no such language from Grassley or other senators for corporations which default on their pension obligations or wealthy individuals who evade paying taxes through the generous loopholes legislated by both parties. The Senate bill passed after a multimillion lobbying campaign by creditor interests. Another facet of the mounting debt crisis for working class and middle class families is the flood of advertisements for home equity loans to consolidate credit card and other debts. While such loans have been sought by debt-ridden families as a way of reducing monthly payments, they serve the interests of creditors because unsecured credit card debt is transformed into second mortgages on homes, which cannot be wiped out by a bankruptcy filing.
Personal bankruptcies are already at record levels, despite relatively low unemployment figures.
The creditors are seeking to tighten the legal requirements on bankruptcy filings because they anticipate that with the turn of the US economy towards recession, the stratospheric levels of credit card debt and other consumer lending will result in far more frequent defaults. The WSWS invites your comments. Please send e-mail .