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Congressmen in Debt -- to Credit Cards!
Congress in Debt -- to Credit Cards!
By Selena Maranjian (TMF Selena)
September 21, 2005
... "More than 40 members of the House reported carrying at least $10,000 in credit-card or charge-card debt in 2003 and parts of 2004," says Josephine Hearn of The Hill, citing_a survey of financial disclosure reports conducted by the publication. That sounds like a lot, but it's less than 10% of House members. (Only one Senator, Norm Coleman, R-Minn., made the list -- he and his wife owed between $10,000 and $15,000 on a joint American Express (NYSE: AXP) card.)
How does this rate stack up to more average Americans? Well, Hearn cites these figures: "About 51 million households carry credit-card debt at an average balance of nearly $12,000, according to cardweb.com." ...
Rep. Duncan Hunter (R-Calif.), for example, sported five accounts with a total of $75,000 to $250,000 in debt. They're apparently mostly new debts, though. Hearn explains: "[Hunter's] six-bedroom home in Alpine, Calif., burned down in October 2003, causing a loss of more than $500,000. Although he received a hefty insurance payment shortly after the fire, he reported $85,000 in personal and car loans in addition to credit accounts, amounting to a much higher level of debt than he had reported in prior years."
... Are our congressional representatives influenced by the credit card industry? It's easy to imagine that many are. Among the debtors alone, Heard noted a few. Rep. Ted Poe, R-Texas, for example, "was ..._among several members who had received campaign contributions from the same bank or credit card company with which they held an account. Poe received $1,000 from Capital One's (NYSE: COF) political action committee. He and his wife have a joint account with the company that was reported at between $10,000 and $15,000." She added, "Nydia Velazquez,_D-N.Y.,_received $6,000 from MBNA (NYSE: KRB) in 2003 and 2004. She reported a $15,000 account with the company."
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