Credit Cards and Bankruptcy

Is it possible that the credit card companies are marketing even more aggressively now that the risks associated with a consumer filing bankruptcy have been diminished with the passage of bankruptcy reform legislation? If so, what are consumers to do for debt relief?

When the poorly named “Bankruptcy Abuse Prevention and Consumer Protection Act” passed in April of 2005, members of the American Bankers Association (ABA) testified on behalf of the credit card industry urging for reform. When questioned whether the increasing numbers of bankruptcy filings was the result of overspending consumers or the aggressive marketing practices of credit card companies, the ABA testified about the care with which credit card companies solicit new accounts.

According to the ABA, consumers were to blame for the increase in credit card bankruptcy filings because they were taking on too much debt, being irresponsible with their credit, and in some cases, flat out being fraudulent. Interestingly, according to CardTrack, since the “Bankruptcy Abuse Prevention and Consumer Protection Act” was passed in 2005, the credit card companies have sent out more than 8 billion account solicitations, or 1.5 billion more than they had in 2005.

In a climate where consumers are being targeted aggressively with credit card offers, the key to ensuring our personal financial health is knowledge. Educate yourself and your children on the responsible use of credit and how to manage your debt. Unfortunately, when it comes to credit cards and your money, it is survival of the fittest.

If you are interested in learning about how to avoid credit card bankruptcy, please feel free to call (877) 274-1260 or fill out a form and we’ll contact you as soon as possible.