Asians countries are following the lead of the United States to put a cap on credit card high interest rates in consonance with the global financial crisis.

The bill also prohibits credit card companies from compounding the interest charged on their customers.

Chiz Escudero as he is fondly called, who is one of the potential aspirant for the presidency in theĀ  Philippine 2010 elections, said he wanted the bill to be passed immediately to ease the burden of credit card holders caused by high interest rates charged by banks/credit card companies.

When our people have no other recourse but to use their credit cards to pay tuition, buy essential goods, and even pay power and phone bills, then there is a need to protect them from volatility in the market, especially during these difficult times, Escudero said in an earlier statement. Compounding the interests, surcharges and penalties of credit card debts is the main reason many of the credit card users are now neck-deep in debt. This is one way of helping them out of the debt trap.