Bill Text: NJ AR195 | 2020-2021 | Regular Session | Introduced
Bill Title: Urges Congress and US President to pass and sign legislation that would create credit card interest holiday.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2020-10-19 - Introduced, Referred to Assembly Consumer Affairs Committee [AR195 Detail]
Download: New_Jersey-2020-AR195-Introduced.html
Sponsored by:
Assemblyman ROBERT J. KARABINCHAK
District 18 (Middlesex)
SYNOPSIS
Urges Congress and US President to pass and sign legislation that would create credit card interest holiday.
CURRENT VERSION OF TEXT
As introduced.
An Assembly Resolution urging the Congress and President of the United States to pass and sign legislation that would create a credit card interest holiday.
Whereas, Nearly three-quarters of United States citizens have credit cards; and
Whereas, Nearly half of all United States citizens who carry credit cards have an average credit card debt of approximately $7,000; and
Whereas, Credit card interest rates have continued to increase over recent years, hitting a 25-year high in 2019; and
Whereas, Credit card debt leads to average annual payments of over $1,000 in credit card interest; and
Whereas, Many Americans use credit cards due to limited cash flow and need credit cards to afford necessary monthly expenses including rent, utilities, and medical bills; and
Whereas, Recent global events, such as the COVID-19 pandemic, have had and will continue to have, a dramatic effect on American credit card debt, especially since most credit card debt is due to medical bills; and
Whereas, Credit card debt continues to accumulate, with Americans owing a record high of nearly $1 trillion in credit card debt; and
Whereas, New Jersey has the second highest average credit card debt per capita in the country; and
Whereas, Federal aid in eliminating or substantially decreasing credit card debt would help the economy as it would allow consumers' increased ability to finance new purchases and increase their spending ability; and
Whereas, Federal action is needed to curb the ever-increasing credit card debt and a credit card interest holiday would greatly help both the United States economy and its citizens; now, therefore,
Be It Resolved by the General Assembly of the State of New Jersey:
1. This House urges the Congress and President of the United States to pass and sign legislation that would create a credit card interest holiday.
2. Copies of this
resolution, as filed with the Secretary of State, shall be transmitted by the
Clerk of the General Assembly to the offices of the Congress and President of
the United States.
STATEMENT
This resolution urges the Congress and President of the United States to pass and sign legislation that would create a credit card interest holiday.
The vast majority of Americans have credit cards, with nearly half of credit card holders having some amount of credit card debt. Adding to this problem, credit card interest rates have continued to increase over recent years and reached a 25 year high in 2019. On average each United States household with a credit card carries approximately $7,000 in credit card debt and pays approximately $1,000 annually solely in credit card interest. Many Americans either choose to use or are forced to use credit cards due to limited cash flow and need credit cards to make ends meet on a month-to-month.
While the federal government has taken steps in the past to attempt to stymie the increase in consumer credit card debt, these actions, such as the "Credit CARD Act of 2009" and the "Bankruptcy Abuse Prevention and Consumer Protection Act of 2005", have been insufficient in curbing the ever-increasing growth in credit card debt. The "Credit CARD Act of 2009" focused on curtailing deceptive and abusive practices by credit card issuers, while the "Bankruptcy Abuse Prevention and Consumer Protection Act of 2005" was ultimately more beneficial to credit card companies and not credit card holders.
Credit card debt continues to accumulate, with Americans owing a record high of nearly $1 trillion in credit card debt. Recent global events, such as the COVID-19 pandemic, have had and will continue to have, a dramatic effect on American credit card debt. New Jersey citizens, like citizens of every other state, struggle with credit card debt. The State has the second highest average credit card debt per capita in the country. Federal aid in eliminating or substantially decreasing credit card debt would help the economy as it would allow consumers' increased ability to finance new purchases and increase their spending ability. Federal action, therefore, is needed to curb the ever-increasing credit card debt and a credit card interest holiday would greatly help the US population.
