Credit Cards and Bankruptcy

Now that there is new bankruptcy legislation in place that makes it more difficult than ever for consumers to file bankruptcy, creditors seem to be more aggressive in seeking out new accounts. Whether this is the case or not, there are debt relief options out there for consumers.

In April of 2005, the Bankruptcy Abuse Prevention and Consumer Protection Act was passed. This brought on the testimony of members of the American Bankers Association who stated that credit card companies solicited new accounts with care, and were not marketing aggressively. They cited consumers for the increase in bankruptcy filing, saying that people were just being financially irresponsible and often just plain fraudulent in their applications. However, there is some speculation as to how much pressure is on consumers to accept credit card offers.

Consumers are getting more credit card offers than ever before. In order to avoid facing debt settlement or other bankruptcy alternatives as a result of credit card debt, people need to be financially responsible for their actions. You need to educate yourself and your family on how to manage money, how to balance a budget, and how to avoid overspending and the temptation of instant money that plastic offers. Teach young children that credit is not free and they are not extra money in addition to income, but to be used in place of income for emergencies and expenses that you can pay off when the next bill is due.

With more credit card companies than ever and more restrictions on bankruptcy filing, a proper education in credit and finances is more important than ever. Even without these things to deal with, it's always wise to be a responsible consumer and get a solid financial education.