Maximum credit card interest rates? Necessary? 15%
Currently discover card is at max 24 to 27.42% APR.
31-35, M
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swirlie · F
For as long as I've had my own credit card, the APR has always been at least 21%. That is why credit card companies are owned by the banks. Credit cards are not designed to provide low-interest credit-loans to consumers, they're designed to make money where the bank wasn't able to make money by loaning money at only 6%.
jehova · 31-35, M
@swirlie debt burden economic growth and unfair profit. If inflation and interests rates were equal to each other, absolute value of currency would either remain constant or slowly increase. My judgement is based on my understanding of macro and community economics. Has it ever been applied in this way?
swirlie · F
@jehova
Where your understanding of macro and community economics does not apply, is with the concept of credit cards.
You cannot treat a credit card as a short-term bank loan because that is not what they are for. If they were, nobody would ever pay off their credit card and eventually, the banks would go bankrupt. If you want a short-term loan to pay off your credit card, go to the bank and get one, then pay off your credit card debt, then pay off your short-term bank loan.
Where your understanding of macro and community economics does not apply, is with the concept of credit cards.
You cannot treat a credit card as a short-term bank loan because that is not what they are for. If they were, nobody would ever pay off their credit card and eventually, the banks would go bankrupt. If you want a short-term loan to pay off your credit card, go to the bank and get one, then pay off your credit card debt, then pay off your short-term bank loan.
jehova · 31-35, M
@swirlie ok and if im expected to pay it off monthly (short term) in step with inflation, which is also short term (as often as quarterly) why shouldnt the rate of interest be tied to short term inflation. As i already noted inflation is roughly 6%; sometimes twice the amount of interest on long term loans (about 3 to 5%) therefore how can debts every be paid when a "short term loan" charged to a credit card is accruing at 4 to 5 times the rate of inflation.
Such a system (as it currently is) is both predatory and unsustainable.
Or do we prefer our government forever in debt attacking or defending its collectors when it cant pay? Only to then be increasing its indebtedness.
Such a system (as it currently is) is both predatory and unsustainable.
Or do we prefer our government forever in debt attacking or defending its collectors when it cant pay? Only to then be increasing its indebtedness.
swirlie · F
@jehova
First of all inflation is not currently running at 6%. Secondly, a credit card is a means of purchasing without the use of cash. A credit card is only designed as a credit-mechanism for the sake of convenience. At the end of the month, you are expected to pay the balance owing on your credit card. If you do not, you are penalized at a rate of 21+%.
If you are using credit cards to live on, then you don't know as much about economics and financial planning as you think you do. I suggest that you cut-up your credit cards and start paying with cash everywhere you go.
First of all inflation is not currently running at 6%. Secondly, a credit card is a means of purchasing without the use of cash. A credit card is only designed as a credit-mechanism for the sake of convenience. At the end of the month, you are expected to pay the balance owing on your credit card. If you do not, you are penalized at a rate of 21+%.
If you are using credit cards to live on, then you don't know as much about economics and financial planning as you think you do. I suggest that you cut-up your credit cards and start paying with cash everywhere you go.
jehova · 31-35, M
@swirlie im aware of that. Inflation is typically 4.2% credit interest is about 5 times that amount (21% which is the low end). If i could pay my credit card off, monthly, i probably wouldnt need the credit card. As weve noted the national credit is ever increasing. Therefore ppl ARE spending more than they have in order to survive (implying inflation and interest rates; which should be tied are outpacing wage growth. Wage is dependent of an employers buying power, which decreaze with inflation. That is NOT sustainable. Ive proposed a possible solution. Do you suggest the same old, which isnt working; suddenly will?
swirlie · F
@jehova
American debt continues to rise because debt is part of American culture that has been taught as 'normal financial behavior' for the past 80 to 90 years in America.
It all got started with the government telling people to borrow money from the bank and buy all they needed with it, which was a game plan that was intended to jump-start the economy after the Great Depression of 1929.
What the government forgot to tell everyone was to re-pay their bank loans. Americans are not a rich culture of people because they are largely an uneducated society which is why everyone including the US government is so far in debt.
American debt continues to rise because debt is part of American culture that has been taught as 'normal financial behavior' for the past 80 to 90 years in America.
It all got started with the government telling people to borrow money from the bank and buy all they needed with it, which was a game plan that was intended to jump-start the economy after the Great Depression of 1929.
What the government forgot to tell everyone was to re-pay their bank loans. Americans are not a rich culture of people because they are largely an uneducated society which is why everyone including the US government is so far in debt.