Guest opinion: Utahns are drowning in credit card debt. Itâs time for Congress to step up
by Symone Hearst
Utah is home to some of the highest rates of credit card debt in the nation, landing among the top 20 states in terms of the amount of credit debt carried by residents, according to a new report. The WalletHub survey found Utahns carry an average of $2,225 in credit debt. A separate report, meanwhile, showed the stateâs average consumer debt is well over the national average at $114,293.
Inflation isnât the only factor driving these higher costs. A recent $1.2 billion increase in credit card swipe fees imposed by Visa and Mastercard is likely to increase the price of everything, from baby diapers to gas at the pump. These hidden fees jumped 25 percent last year to a record $137.8 billion for credit and debit cards combined, more than double the amount over the past decade. For retailers, swipe fees are typically the most expensive operating cost after labor. An increase in these fees forces merchants like convenience or grocery store owners to raise prices in order to cover higher overhead costs. Because swipe fees are based on a percentage of the total transaction, Visa, Mastercard, and big banks are making a killing off of inflationary prices.
Last month, Senators Roger Marshall (R-KS) and Dick Durbin (D-IL) introduced bipartisan legislation to address this issue by bringing competition to the payments marketplace. The bill, named the Credit Card Competition Act, will require the largest banks in the nation to have more than one processing network for credit card transactions, allowing merchants to choose which network theyâd like to use, thus forcing them to compete for the lowest swipe fee rate. This means Visa and Mastercard will have to consider a merchantâs preference for lower feesâjust like every other business must do when it sets the price of goods.
With Utahns struggling with some of the highest credit card debt in the nation and businesses suffering under record inflation, it is imperative our leaders do all they can to deliver relief. Given Senator Leeâs recent scrutiny of Visa and Mastercard, I am hopeful he will sign onto the Credit Card Competition Act to help drive down skyrocketed credit card fees. (Read More)
News Releases
Nomination applications open for 100 companies championing women
Inspire In Utah, an initiative of the Utah Governorâs Office of Economic Opportunity (Go Utah), announced today applications are open for 100 Companies Championing Women. As part of the new Inspire In Utah initiative, 100 Companies Championing Women focuses on recognizing and highlighting the stories of 100 Utah companies that offer family-friendly policies and practices, as well as women-specific initiatives known to impact the recruiting, hiring, retaining, and advancing of women employees, managers, and leaders.
Company representatives can nominate their organizations to be recognized and highlighted as one of the 100 Companies Championing Women by completing the following application. To apply, you should know detailed information about the policies, programs, and initiatives your company has implemented. For more information and to apply, visit inutah.org/100-companies-application. (Read More)
Faith Leaders ask Governor and Legislative Leaders to find a way to fund additional housing units to reduce homelessness
On Monday, September 12, 2022, faith leaders from eight different faith traditions sent a joint letter to Governor Cox, Utah Senate President Stuart Adams and the Speaker of the Utah House of Representatives and the member asking them to find a way to fund additional housing units to reduce homelessness.
On Friday, September 9, the Utah Homelessness Council approved a proposal to spend $55 million to build 1,078 housing units across the state to reduce homelessness. The letter notes that this important investment was able to fund less than half of the projects that applied, âIt is our understanding that there were more than $120 million in proposals submitted for consideration and so there are several worthy projects that would make a big difference that will not be built without additional funding.â (Read More)
The Utah Pedestrian Summit works to improve the pedestrian experience in Utah
The Utah Department of Transportation (UDOT) is hosting the 5th annual Utah Pedestrian Summit on Wednesday, September 14, 2022, at the Utah Valley Convention Center in Provo. This summit is an opportunity for planning, design, health, education, law enforcement, safety officials, and advocates to share experiences, opportunities and successes in improving pedestrian experience throughout Utah.
The eight-hour summit will focus on a variety of topics including pedestrian safety, design, and encouragement. In-person and virtual options are available, as well as continuing education credits. Those interested in attending need to register, here. (Read More)
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