Squeezing the unfortunates

Another possibility for getting more cannon fodder.

CONGRESS WILL soon debate legislation that will limit bankruptcy options for many Americans. If passed, people facing bankruptcy could find their financial situations worsen by no fault of their own.

Certain events typically lead someone to file bankruptcy: a job loss, divorce, or health issue. Each, in varying degrees, can adversely affect the income of a household. The Harvard Law and Medical Schools study released in the journal Health Affairs this week found that half of all bankruptcies are caused by medical-related bills and most of the affected are middle class and insured.

Washington does not spend a lot of time talking about these cases.

Instead, expect to hear about people who rack up mountains of credit card debt that they have no chance of ever paying in their lifetimes. You will hear of trips abroad, expensive TVs, and houses full of unpaid furniture. What you will not hear are the true stories of the too many people who use their credit cards for food, prescriptions, medical expenses, and their kids' clothes.

[...]

What's missing in this new legislation? Any change to the current practice of lending money to just about anyone. These days, there is little difference between some credit card companies and a loan shark. Of course, credit card companies do not break legs, they just increase the percentage rate if a payment is late, add a late fee, add an overlimit fee, and some even charge an annual fee for the privilege of getting more fees. There are many people trying to get out of debt, but they are being thwarted by the perfectly legal fees and interest being levied against them.

The credit card industry is spending millions trying to convince Congress that the average American in debt is an irresponsible buffoon with an entitlement complex.

[Ed: emphasis added]  Boston.com article

And, I'm sure there are plenty of those. On the other hand, if you understand how banks work their accounts, you know that debt servicing is a huge business for them. In the insane way our money system works, loans are carried on banks' accounts as bank assets. Indeed, it is true. And, if you have a mailbox, you know that lenders swamp everyone with incredible offers to get credit cards for nothing.

The problem is not with the bankruptcy process. Our leaders need to know that it does not take much for an unexpected and uncontrolled event to lead someone to the doors of the bankruptcy court.

Perhaps more important, our leaders need to spend more time asking themselves what makes these financial difficulties so possible and so probable. Hopefully, honest answers will lead to more meaningful reform for people struggling with debt.

Not likely. It's much too profitable a business for the profiteers. And Congress doesn't give a whit about people struggling with debt.

....but hey, do what you want....you will anyway.