This past July, Congress instituted new financial regulations and established an independent consumer bureau within the Federal Reserve to provide Americans with more protection against the credit card industry. However, Women’s eNews is reporting that advocates for women’s financial security say the law did not touch upon a damaging bankruptcy law created 2005. The law allegedly benefited credit card companies and made it easier for their ex-husbands to avoid paying alimony and child support.
“Until 2005, bankruptcy wiped out credit card debts while leaving child support and alimony obligations intact,” president of the Washington-based National Association of Consumer Bankruptcy Attorneys Carey Ebert told the site. “This helped women because their ex-husbands had more funds available to fulfill their support obligations after bankruptcy.”
According to eNews, the Center for Responsive Politics reports that the credit card companies donated $7.5 million to the 2004 election, most of it to President George W. Bush and Republican candidates. Bush and his administration supported the 2005 bankruptcy bill.
Single mothers struggling to make credit card payments are advised to consider debt consolidation. By combining interest rates and narrowing them down to one, consumers can reduce their monthly payments.