Credit Card Debt: Who’s to Blame?

The recent global economic downturn can be blamed to the credit crunch. According to research, there is almost one trillion dollars worth of revolving debt in the US alone. Individuals, groups, businesses and almost every sector of society have debt. But who’s really to blame? Is it the government, lenders and banks, or people themselves?

Credit Providers

The first ones that usually get blamed for the staggering debt are financial institutions. These include banks, credit card providers and lending companies. It all starts with the bait. These groups offer interesting introductory offers which are seemingly too great of a deal to refuse. And what do people do? Snag them like sugary sweet cupcakes only to regret the calories later.

Sad but true. These financial groups know where to push the buttons. They know what people’s weaknesses are and they use these to their advantage. The unsuspecting people on the other hand get lured in to financial trap. Initially, promotional offers and introductory rates work like magic for consumers. They can purchase wonderful items in a swipe without cash. What’s greater is that they get to pay back these items with zero percent interest for an entire year.

But what people realise too late are the interest rates once the promotional period expires. Penalty charges for late payments also pull them back from temporary bliss. As for the credit providers, imposing hefty charges is their privilege. They don’t seem to care about people’s debt.


When the credit crunch hit the economy, many turned an angry face towards the government. People blamed them for not preventing the downturn. They clearly turned a blind eye against consumers’ interest. They failed to protect the masses from debt and from credit institutions.

In 2007, a bill was introduced to the senate imposing rules to credit card providers. The bill ought to have providers state on each billing statement various information such as the period of time a card holder can pay off his balance. This bill got nowhere. Currently, however, a similar bill is being conjured in the senate. This is supposed to clip off credit providers’ horrendous practices such as raising interest rates on late payments.


People shouldn’t act as the sole victim of the credit crunch. Because first and foremost, it is their choice why they have multiple credit cards, have more than $5000 in debt and so forth. They were completely capable of analysing. They are able to compare credit cards if they choose to.

Living beyond one’s means has no justifiable reason. In the end, everything is intertwined. One act can lead to another. And because everyone in the society didn’t do their part, the credit crunch materialised and affected them all.

Jesse Graham, co-writer for The Boss, shares her insight on money matters. The Boss has multiple comparison sites such as Money Boss and Credit Card Boss that can help people find the best loan deals. It’s tough times at the moment, so Jesse will help out where she can, with The Boss’ insight and Jesse’s writing skills, you’ll be saving and surviving on your wage!

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