Originally published March 23 2005
Declaring bankruptcy will be more difficult with new legislation that will be enacted despite House members' mega-debt
by Mike Adams, the Health Ranger, NaturalNews Editor
Though many members of the House of Representatives owe more than $10,000 to credit card companies, there appears to be little sympathy for Americans who are also deep in debt. A new bill that makes it more difficult to declare bankruptcy has already passed the Senate and it looks like it will be passed by the House as well. This could spell trouble for consumers who are financially strapped after suffering financial setbacks.
Imagine the kind of person who might accumulate $50,000 to $100,000 in credit card debt.
Or the person might be a member of the House of Representatives, earning about $158,000 a year plus full health benefits, plus travel expenses and a small stipend for housing.
A report in Friday's The Hill newspaper, a Washington weekly covering Congress, said that more than 40 House members carried at least $10,000 in credit card debt in the 2003-2004 session - and that a handful carried megabalances of $100,000 or more.
Rep. Gary Ackerman (D-Jamaica Estates) reported a total accumulated debt of $50,000 to $100,000 on several credit cards.
Asked in a separate interview (with me) why he needed to borrow so much money, Ackerman said that maintaining two residences was expensive, and that cash flow was a recurring concern.
He said he often borrowed money on cards offering zero percent interest for a limited term of 30 or 60 days, then paid the balances in full before the end of the term.
Bishop, in answer to the same question, said his debt originated mostly from the 2002 congressional campaign in which he defeated a Republican incumbent, Felix Grucci.
The average American owes $8,562 to credit card companies; and by the estimate of one consumer group, 51 million households carry a credit card debt load of $12,000 or more.
That represents a large investment by the nation's consumer lenders - and it explains in large measure their industry's full-court press this year for changes in the bankruptcy law.
The banking industry has been pushing the bill for years.
This year, with pro-business conservatives in control of both houses and the White House - and despite strong evidence that the vast majority of bankruptcies are the result of medical crises, job losses, family break-ups and combinations of all three - it seems likely to be enacted.
All content posted on this site is commentary or opinion and is protected under Free Speech. Truth Publishing LLC takes sole responsibility for all content. Truth Publishing sells no hard products and earns no money from the recommendation of products. NaturalNews.com is presented for educational and commentary purposes only and should not be construed as professional advice from any licensed practitioner. Truth Publishing assumes no responsibility for the use or misuse of this material. For the full terms of usage of this material, visit www.NaturalNews.com/terms.shtml