Cap credit card intrest rates at a maximum of 10%
Americans have had to utilize their credit cards for years to keep up with inflation and it has caused millions of families to fall severely in debt. Credit card companies have taken advantage of Americans by raising the intrest rates on credit cards over the years, many as high as 30%.
Americans are struggling to get out of debt with these insanely high rates. Many will never be able to. Capping the rates at 10% will reduce the burden on families and allow them breathing room while still repaying the banks a fair repayment.
Allowing more money to flow to the economy making America stronger.
3 Likes
I think it would be more useful to cap interest amounts.
If the interest may never exceed the principle, it still allows lenders to double their money, but it keeps borrowers safe from infinite-debt traps.
1 Like
I like the idea of this, discourages people from borrowing money and punishes them for not repaying it, but doesn’t completely doom the person… needs some polish put it’s going in an interesting direction
I like the idea in principal, but there has to be a floating ceiling to the limit, based on the “prime” interest rate (the rate the Fed charges the banks to borrow money).
The reason I say this, at one point back in the 70’s, the Fed was asking the banks to pay 14+ % interest (it was reported home loans were in the 18% range) - if we ever saw that again and the banks couldn’t charge more than 10% they wouldn’t lend anybody money because they would lose money.
This is top of mind for me today, as I was switching a store branded credit card, and the card lists with a 30+% interest rate (and this is with stellar credit). I fortunately use it for cash back rewards and pay it off at the end of each month. I remember when the store branded cards were 18%, and that wasn’t that long ago. Likewise, my mainstream cards (Mastercard, Visa, Discover, etc) are in the mid-teens for interest, whereas 10 years ago they were 7 or 8 %.
It comes down to let the cards make money, but they should not be gouging the interest rates - and that’s where any cap should be. Yes banks may drop some perks for those like me that are fiscally responsible (ie No Interest for a set period, Free balance transfers, Cash back rewards, etc.) but they’re also not going to destroy those that can only afford to make large dollar purchases on credit.
1 Like
I absolutely agree Michael Jones.
Im not saying the 10% has to be forever. I’m saying set it for a limited time so Americans can get caught up.
CC usage is at an all time high, people need some help.
Thats all.
Thanks for your input. Its much appreciated.
Everyones is 