Americans Getting By On Credit Cards
Millions of Americans are turning to credit cards to
make ends meet. A new report from the think tank Demos shows that
over the past year, 40-percent of low- and middle-income households
used credit cards to pay basic expenses such as rent, mortgages,
groceries, utilities and insurance. A senior policy analyst for the
organization, Amy Traub, says years of little or no income growth
combined with higher living expenses force some families to fall back
on what she calls a “plastic safety net.”
Demos released the survey on the third anniversary of Credit Card Accountability, Responsibility and Disclosure Act, which imposed new rules and regulations on credit cards issuers, including limitations on fees, interest rates and penalties and better billing and account disclosures.
“The Credit Card Act clearly didn’t solve the underlying problem of households needing to rely on debt to make ends meet,” she said.