Here are some of the findings from a recent report highlighting abuses in the consumer credit industry put out by Demos, a "non-partisan public policy research and advocacy organization committed to building an America that achieves its highest democratic ideals":

One-third of cardholders are paying interest rates in excess of 20 percent.

In 1990 the lowest APR reported was 11.88 percent, and the highest 22 percent. By 2004, the lowest was 0 percent while the highest jumped to 41 percent.

1/3 accounts pay interest rates that range from more than 20 percent to as high as 41 percent.

The report also found, not surprisingly, that minorities tend to pay higher interest rates than non-minorities, probably a result of income inequality and poorer credit scores resulting from that.

This is scary stuff. I would look for, and hope for, this to become a major issue in the upcoming elections. Rather than attacking Hillary Clinton for donating money to News Corp. (NYSE: NWS), a red herring issue if ever there was one, candidates from both parties should be lining up to look for solutions, education and regulation, to put a stop to the Americans whose lives are being destroyed by debt.

To learn more about the crisis of consumer debt, pick up a copy of Maxed Out.

Report says 'cycle of debt' traps consumers originally appeared on BloggingStocks on Sun, 05 Aug 2007 15:10:00 EST. Please see our terms for use of feeds.