Discussion: Should the quantity of credit available to american consumers be significantly reduced?

Just wondering peoples response. If you have any statitistics, please provide a link.|||It will be when the default level exceeds the banker's greed.|||If this is a discussion - what is your stance on it?





If laws are passed to significantly reduce the quantity of available credit - other laws should be passed to make it illegal for "any" company, or person, to discriminate against those who have little or no credit.





Effectively making it a crime for employers, rental property owners/managers, home utilities, etc., etc., etc. (it would be a very long list) to check a persons credit reports (including LexNex)


Not included in the list is the actual lenders - banks, credit card companies, etc.


And it should be passed before or along with any credit reduction law.





BUT - since "many" people (including those in the government) make bucks off of the credit consumers, by holding shares of stock in the lending companies, making money from lobbyists, etc.,etc, - that concept will never fly.





edited to add


I agree with the posters that mentioned credit education. Many high school grads don't even know how to write a check let alone run their own financial lives.





Since it would seem that a large percentage of parents/care givers fail to provide credit/financial education, it should be taught in our schools - and should start in "grade school" and continue through the rest of the schooling years.


(applauds those parents that do teach their kids)|||yes-predatory lending is a big problem in this country. I don't have statistics but there is a new documentary out/soon to be released on this subject that is getting a lot of attention. Personal responsibility is an issue, but many people are not aware of the ease with which one can become overbuderned by debt that seems to "creep up". Credit limits are too high %26amp;credit is too easy to get. Look at the damage to decent, honest people who took variable rate mortgages and now cant make the payments. Understanding this stuff can be difficult, so you can't blame the consumers 100%. Example-my 18 year old high-schooler just got approved and received (after being solicited) a CapitalOne Visa card. She makes about $50.00/week on a good week. That is just wrong!|||NO. That would causethe economy to contract and have a ripple efect throughout the enconomy. Consumer debt is not the great issue you think it is. We are not swimming in debt compared to our incomes and assets. Especially now after HUGE ruinup in property values, a major savings vehicle for many middle class families.





You would do much better to work to increase personal responsiblity and financial literacy. I think the big culpret is our newly emerging culture of victimization. People need to learn to rely on and take care of themselves. We have gone from a nation of Pioneers to a nation in perpetual daycare!|||This situation may very well be self correcting as we see the ripple of defaults in the sub prime market which in many cases are caused by predatory lending.|||Yes! I don't have links, sorry, but I have been reading a lot about a drastic rise in people ages 18-25 filing bankruptcy...this should NOT be happening. People are out of control. Also, I believe I read that the amount of total credit debt has gone up 400% in recent years...the general public is obviously not educated on the proper usage of credit.