Debt | Economic Challenges of Young People | Medical Debt | Race & Debt | Student Loans and Student Loan Debt

• Jose Garcia - Associate Director for Research and Policy

• James Lardner - Senior Fellow

• Tamara Draut - Vice President of Policy and Programs

• James Lardner - Senior Fellow

• Heather C. McGhee - Director, Washington Office
• Caleb Gibson - Federal Affairs Manager

An examination of recent economic trends--stagnant and declining real wages, job displacement, rising health care, a turbulent housing market--suggests that many Americans are using credit cards as a way to fill a growing gap between household earnings and the costs of essential goods and services.

Exorbitantly high credit card rates and exploitative fees have taken advantage of the increased need for credit. As a result, more and more American families find themselves perpetually indebted to the credit card industry, which--despite claims of losses and charge-offs--remains one of the most profitable sectors of the banking industry.

A burgeoning movement of economic security advocates, consumer groups and financial service providers are beginning to question the high cost of credit in the age of deregulation. Whether this movement can convince lawmakers to re-instate usury laws (limiting the interest charged to consumers) or other reforms will depend on an educated and mobilized community and public. There is already some momentum at the Federal level, and that movement is expected to grow over this and the next Congress.

Demos has conducted wide-ranging research on the explosion of credit card debt in America across race, age and income demographics, and has developed a policy reform platform from which meaningful reform of the credit card industry can start.

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