If the credit industry wants more people to pay off their debts
- a driving motive behind recent changes to U.S. bankruptcy law
- then creditors should clarify the long-term cost of borrowing.   

That is why consumers should support Sen. Dianne Feinstein's
S.1040, a bill that requires more disclosure about the long-term
cost of credit card debt.

Feinstein's legislation would not affect the fees and charges
that creditors levy on consumers. Instead, the California
Democrat would require card issuers to include information on
each bill about the consequences of making minimum payments: how
long and how much it would cost to repay debt that way. In many
cases, this data would be generic - as in, how long it takes to
pay off typical balances at typical interest rates.   

But if a cardholder makes only minimum payments for six
consecutive months, the credit companies would then provide a
personalized version of the generic data, based on the
consumer's current balance and interest rate. That requirement
may spark industry opposition, but such a provision would arm
consumers with valuable information.   

According to CardWeb.com, which compiles data about the credit
industry, Americans now hold 1,537.8 million credit cards, or
about five cards per person. U.S. cardholders owed an estimated
$ 800 billion in credit card debt as of March.

The credit industry dispenses these cards freely and easily, and
it is reasonable to ask that creditors explain the financial
consequences to unwary customers. "Buy now, pay later" sounds
enticing, but consumers deserve to know the price of that
borrowing.