Credit Card reform is working its way through Congress and is expected to pass with little tussle between the parties. The so called ‘Credit Card Holder Bill of Rights’ would ban credit cards for those under 18, double cycle billing, and retroactive rate hikes and other protective measures. This is another case of the federal government working its way into the commercial market and slapping down regulation. In this case however it is probably needed. Bad fiscal decisions have brought America’s economy to its knees and the average household credit card debt is a testament to this.

Some opposition has risen contending that the Credit Card bill of rights will choke off supplies of cash that families and companies need. This bill will also most likely cut into the profits of banks that make a buck on credit card fees. With the current state of the banking industry this is a concern.

For years credit card debt on families has been rising, the current estimate are over $10k that people have on their credit card at any one time. An increasing number of college graduates are entering the workforce with multiple credit cards, and sadly with multiple credit card debts. America’s young people have grown up with credit cards in their hands and are having trouble understanding the consequences of living beyond their means. The fact of the matter is, you cannot take on more debt to solve problems caused by debt in the first place. Different avenues of cash need to be sought or a change in lifestyle needs to be made.

This is an instance where the market is stabilizing itself. The stabilization however is in the form of families and business’s deplorable credit ratings, shrinking savings, and failure to make bill payments. This is a harsh reminder to the American people that personal and commercial finances are a serious matter and responsible decisions prepare you for the future. I believe in a small, less involved government, but I understand that the government is supposed to protect the people, even protect the people from themselves.