Difficult economic times cause even more people to turn towards credit cards for necessities.  Keeping up with inflation is not possible, so many people need to resort to credit to feed their families, pay heating and electric bills, etc. The last thing the average financially strapped person needs is to be hit with all sorts of additional charges for using this credit, yet, that is what can happen.

Credit card companies actually target people who are experiencing financial problems.  After all, they know this is where the money is to be made.  One late payment, even on another bill, can cause a very large increase on the balance on your credit card.  Yes, even though you borrowed the money at one rate, this can suddenly change and often does.  What does a person do if the rate on their credit cards leaps from 16% to 26% and they have a large outstanding balance?.  All they can do is struggle to pay the minimum due amount and spend years contributing to the profitability of the issuing bank or credit card company.  A spokeswoman for the American Bankers Association addressed this issue by saying “There are over 6000 card issuers.  If you don’t like the fee structure of your credit card, there are 5,999 other ones to choose from.”  Consumer advocates have responded that companies often add new fees and policies after customers have already signed up for the old fee structure.  Customers are advised of changes with notices that are extremely difficult to understand and in the tiniest print allowed by law.

Congress is currently studying several new proposed laws to address the abuses which currently exist.  The banking industry lobbyists are expected to fight any changes, but Congress is being greatly influenced this year by the plight of the average citizen trying to survive in this economy, so passage of one of these bills looks like a strong possibility.