Harvard Law Professor Elizabeth Warren recently wrote an article in which she noted that the credit card industry responded to Congress's bankruptcy bill of 2005 by sending out 8 billion credit card solicitations in 2006 - a 30% increase over 2005. The credit card industry decided that if Congress could make filing bankruptcy more difficult, it would work harder to get people to borrow more money.
There are about 110 million households in the United States. The credit card industry sent approximately 73 card offers in the mail to each household. Warren noted that if the average card offer was for $5,000 in pre-approved credit, that amounts to $365,000 in offers for each household, or about $1,000 per day, every day of the year. Warren further explained that the median household income in the United States is $46,000, or about $127 per day.
The credit card companies are actively attempting to put people into positions where they can barely keep with with their monthly payments. Warren has encouraged the credit card companies to stop sending cards to people on the financial edge, but the card companies told her that those consumers were the most profitable part of their business. If you are experiencing problems staying current with your credit card payments and believe that you are the only person to blame for your circumstances, think again - the credit card industry is targeting you to maximize their profits. Where is the morality in their behavior?