A Poverty-Fighting Agenda for the New President and Congress
The election has infused our community with new energy. While we face a severe economic downturn an other daunting challenges, new leadership at the federal level offers opportunities for lasting change. At this time of renewed promise, informed by our relationships with low-income people, community-based organizations, legal aid lawyers, and direct service providers, the November-December 2008 special issue of Clearinghouse Review offers twelve ways that action by incoming President Barack Obama and the 111th Congress can advance an effective and meaningful antipoverty agenda.

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Support the Shriver Center in the Fight Against Poverty
Congratulations to President-elect Obama. Like Sargent Shriver and the Shriver Center, he understands the complex factors that combine to suppress opportunity. Now, more than ever, the Shriver Center’s efforts and that of the government will drive toward a common goal, providing the Shriver Center with an unprecedented opportunity if you and people like you remain our steadfast supporters. Please make a gift today.

Reining in Harmful Credit Card Practices

By Karen Harris, Supervising Attorney

Medical emergencies, unexpected events, job loss, and other situations can temporarily impact a household’s cash flow. This is particularly true for low-income households. Rather than turning to payday loans or other predatory lending options, the use of credit cards can, occasionally, ease the impact of such temporary disruptions. Specifically, unsecured credit cards can quickly and easily extend lines of credit to those without the collateral assets required for traditional loans. Unfortunately, consumers who have a history of late payments or other credit card debts pay higher interest rates or have other penalties or restrictions placed on them because they are considered “high risk.” For example, “high risk” consumers are often given low introductory rates that quickly balloon within the course of a year.  Additionally, a “high risk” consumer’s ability to pay off credit card debt may be exacerbated by the likelihood of unexpected hikes in interest rates or requirements to pay off interest rates before the principle. As a result, the chances of defaulting on such credit card debts are greater.

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