down (Koretz 2000). In addition Koretz (2000), impliesthat former welfare recipients have started using credit to maintain their previous level ofincome. In short, welfare reform may be a fallacy because creditors opened their doors at higherunfair rates to the poor. Again, Providian has made a killing off the backs of Americas poor(Weber & Palmer, 2000). What needs to happen in order to change the growing problem? While the Federal TradeCommission has set standards for creditor rates, in light of the abuse it is important for thegovernment to intervene by creating more detailed restrictions on creditors. Limits need to be setfor mailings of pre-approved offers and consumers need awareness of the costs of credit carddebt. Hickey (2000), states that some college campuses are forbidding creditors to set up tables.This is an action that can prevent young adults who are vulnerable to the lure of free money. Inaddition, the use of debit cards issued by banks can replace the need for a credit card.Consumers are able to keep track of their spending by using the debit card as a credit card, butthe funds come directly from the clients account. Debit cards are also permissible for hotelrentals and any other credit card requirements. Those that are in debt need to start paying thedebt down by adding to the minimal payment per month while the economy is still lively. Inconclusion, awareness, government intervention and pro-active consumer behavior will destroythe power of unfair and abusive credit card companies....
