Legislation aimed at remedying what is view as questionable practices of the credit card industry that keep consumers mired in debt was introduced recently.

Based on the most recent data from the Federal Reserve, the average American family carries an average of $2,200 in credit card debt.

The credit card industry has come under fire from lawmakers in recent months for what some critics have labeled "unfair" practices such as raising interest rates on debt even when consumers pay on time or when their credit scores change.

If passed, the law would stop credit card issuers from charging interest rates on debt that is paid on time and require that interest rate hikes apply only to future credit card debt and not debt already incurred.

Credit card companies have argued, however, that such a law would have dire consequences on all consumers by making credit more expensive and less easily available. At the same time, issuers, and some federal regulators, have argued that new legislation could have unintended consequences. It is said that if this bill is enacted, the financial burdens associated with the higher-risk customers will be spread across all customers.

So with the average credit card debt being $2,200, I guess I am below average with ZERO credit card debt!

Labels: Credit Cards, Debt