Essay Discussing the Credit Card Debt Crisis
Huffington directs most of her attention towards JPMorgan Chase, the nation's top credit card lender who in 2009 began putting a $10 charge on card holders who have a large balance on top of the interest they already pay. Most credit card companies have already raised interest rates on the majority of its card holders by 3 percent even the ones with good Credit standings. Huffington also stated that …show more content…
My purpose in this discussion is to review and analyze the issues surrounding the Credit Card Debt crisis. In this assessment I hope to reveal the reason behind high interest rates, why most card companies are converting to banking holding companies, and to dive deeper into the banks and Card Company’s relationship.
Literature Review In the book Credit Card Nation: The Consequences of America's Addiction to Credit By Robert D. Manning. In his book he points out several problems and one of them is the “U.S Triangle debt” which are three sections of debt featuring (1) public sector (government), (2) private business (corporate), (3) private citizens (consumer). On these bases he believes is the reason for the transformation of America from a creditor to a debtor society. Manning say that “ It begins by tracing the roots of the