Helping your at home Partner with their Credit Card
The Credit card Accountability, Responsibility, and Disclosure – CARD act of 2009 aimed to protect credit card users and enabled them to save money as the terms and conditions were relaxed overall. Though, this benefited majority of the individuals, those that were adversely affected were the stay-at-home spouses.
The CARD act provided a lot of benefits to the masses that made life a lot easier. For instance, the increase in interest rates was no longer applicable in retrospect motion, the deadlines for the payment of the bills were relaxed, the amount of lending fees was restricted, the documents of credit cards were required to be written in plain language and the penalties were increased for someone who breaks the rules.
These were all the benefits that this act provided. However, this act also brought about changes to the application of credit card. Previously, stay-at-home spouses could obtain credit cards in their names by mentioning their total household income. This act brought a change to that policy. The credit card companies now ask for the individual income of the person who is filling the application for credit cards.
This move was meant to protect college students who take up credit cards by mentioning their household income and then end up falling in debt as they don’t usually have the funds to pay their credit card bills. However, if they do face such a situation, they always have the option of opting for debt settlement programs offered by experts, but this act believes that this situation should not arise in the first place.
However, due to this reason, the stay-at-home spouses or parents were not able to avail credit cards, as they don’t have their own source of income, and this infuriated many. Though it is true that stay-at-home spouses do not generate any financial income but the economic value they generate cannot be ignored completely as well.
According to the statistics published in a website, a typical stay-at-home spouse or parent works around ninety-five hours each week, which eventually is of a value of $113,000 in monetary terms. However, one other website estimated the value to be $60,000. The difference in value may be due to the different factors incorporated into their assessments.
Regardless of the figure, the amount is significant and should definitely not be ignored.
Though, these spouses had the benefit of being an authorized user of their partner’s credit card, this did not seem appealing to many of them. They preferred independence and wanted one in their own name. Their reason may seem valid as they claim that the future is unknown and they want financial security even after they file divorce or separation, should they need to.
The figures $60,000 and $113,000 mentioned above though do not bring any money flow to the household but can be considered as an economic value of running a household. The stay-at-home spouses should be given the independence of getting a credit card in their name as they do provide some value to the society, though not in financial terms.
Stay-at-home spouses do not have any source of income, but they do have access to the total household income and can use them to pay their credit card bills. Furthermore, since most of the times they pay their bills on time, they have a good credit score. Yet, if they fail to pay their bills, maybe due to the lack of funds in any particular month or months and fall in credit card debt, they can make use of the debt settlement programs that are offered by many experts.
This CARD act published by the Consumer Financial Protection Bureau in 2009 aimed at giving financial protection to the credit card users and it did achieve this aim to some extent. Though, this move has protected college students having no or little income from any financial disasters, it has made life tough for the stay-at-home spouses. Therefore, this act should revise its policy of issuing credit cards to individuals having their own source of income and relax some of the terms for the stay-at-home spouses.
Celina J is a professional writer and finance adviser. She writes various articles and blogs on the current issues of the economy and politics. She carries out extensive research over the internet to guarantee that the information she provides to her readers is 100% genuine. She recommends to read ConsolidatedCredit.org website for any debt related information you need.
***Photos Thanks to Cindy Funk & Philip Taylor PT***