Yesterday said:

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Jack Boyett said:

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Maybe the average guy not having a credit card would be a net positive

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That is not the governments job.

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Everything is not the government's job, including subsidies to private companies, yet here we are.

Get the government out of everything, including subsidies to private companies, and I'm all for it. If there's an exception for anything, then there's a path opened for an exception to all things.

Also, the government not being in the job of housing lending in the early aughts is what led to the crash in W's last year in office, And we all know how well that "Too Big To Fail" went for the average American.

People taking huge 'loans' thru credit cards is the problem. Many of us are fortunate enough to be blessed with good jobs and never have to worry about bills, food, healthcare - but all of us know someone with some nightmare story about someone who is making minimum payments against a balance that they'll never be able to pay back. Some people call it 'bad luck', but it's really 'bad decisions'.

No Spin Ag said:

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Yesterday said:

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Jack Boyett said:

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Maybe the average guy not having a credit card would be a net positive

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That is not the governments job.

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Everything is not the government's job, including subsidies to private companies, yet here we are.

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Don't threaten me with a good time.

zephyr88 said:

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People taking huge 'loans' thru credit cards is the problem. Many of us are fortunate enough to be blessed with good jobs and never have to worry about bills, food, healthcare - but all of us know someone with some nightmare story about someone who is making minimum payments against a balance that they'll never be able to pay back. Some people call it 'bad luck', but it's really 'bad decisions'.

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That really doesn't have to be the case in 2024. My cousin was in that spot, until I explained that he could transfer the balance to a 0% apr for 18 months CC. So he did, then paid it back over that 18 months. He was considering taking a loan against his car that was free and clear. All he had to do was a quick balance transfer. Easy.

Speaking bigly, we need two parties. Maybe a new left and right will come through maga.

Yesterday said:

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No Spin Ag said:

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Yesterday said:

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Jack Boyett said:

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Maybe the average guy not having a credit card would be a net positive

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That is not the governments job.

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Everything is not the government's job, including subsidies to private companies, yet here we are.

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Don't threaten me with a good time.

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Dude, if you're for cutting private companies off the government teet in every way, you're very much alright in my book.

zephyr88 said:

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People taking huge 'loans' thru credit cards is the problem. Many of us are fortunate enough to be blessed with good jobs and never have to worry about bills, food, healthcare - but all of us know someone with some nightmare story about someone who is making minimum payments against a balance that they'll never be able to pay back. Some people call it 'bad luck', but it's really 'bad decisions'.

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They don't have to pay it back. It's not the IRS where they'll take your home and paycheck. Your credit takes a hit and you'll be a cash buyer for a while but that's better than paying a debt you made for 20 years. Just talking out loud, not at you.

Great . Unconstitutional Government intervention always works out so well.

Hasn't this already been done in Europe without the doomsday effects predicted in this thread?

Could this be done with enhanced federal prosecution for credit card fraud and theft? Looks like that this would greatly help the industry and the consumers. Lock up the fraudsters.

Mas89 said:

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Hasn't this already been done in Europe without the doomsday effects predicted in this thread?

Could this be done with enhanced federal prosecution for credit card fraud and theft? Looks like that this would greatly help the industry and the consumers. Lock up the fraudsters.

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Locking up fraudsters, if you can catch them, costs a lot of money and requires more government.

Government interference with the freedom of contract

Trump is NOT a conservative.

Mas89 said:

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Hasn't this already been done in Europe without the doomsday effects predicted in this thread?

Could this be done with enhanced federal prosecution for credit card fraud and theft? Looks like that this would greatly help the industry and the consumers. Lock up the fraudsters.

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I was going to ask how much of the higher rates pay for the fraud the CC companies have to cover? That can't be a small number.

We should hang those thieves from the highest tree.

Yesterday said:

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Mas89 said:

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Hasn't this already been done in Europe without the doomsday effects predicted in this thread?

Could this be done with enhanced federal prosecution for credit card fraud and theft? Looks like that this would greatly help the industry and the consumers. Lock up the fraudsters.

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Locking up fraudsters, if you can catch them, costs a lot of money and requires more government.

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That's money well spent. I wish I could dedicate my fed tax to that effort alone. Good job for the fbi.

Some people have accused Trump of being a closet Democrat and since he is a lame duck President, we may be seeing a lot of this.

However, it does not change my vote.

halfastros81 said:

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Great . Unconstitutional Government intervention always works out so well.

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Usury rates are illegal. The question being asked is above what level is usury? Payday loan rate acceptable?
Who sets the rate that is legal? 10, 15, 20, 25?

What's your number that is legal?

TheBonifaceOption said:

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Quote:

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You know that means that the average American will no longer have credit available to them, right? An unsecured credit product to everyday Americans comes with a ton of risk.. the banks will no longer take that risk if the govt caps what they can charge. Horrible policy imo.

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Back away from the ledge.

First of all, CC companies do not make their money on the "28%" interest. They make their golden egg on the transaction fee at swipe, so jot that down. You think you're pulling one over on Visa by paying your balance off every month?

Further, creditors lose billions on bankruptcy. This would reduce the amount of loss dramatically. In reality this would result CCs reducing the limit they allow to be borrowed.

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This falls into the category of something that goes totally against free market principles that I believe in but I think could be a net benefit to society. People have way too much cc debt and lowering the rates will decrease it massively because credit will dry up and the balances won't grow so quickly.

If Trump and Bernie Sanders think a 10% interest rate cap on credit cards is a good idea then they should start their own credit card business and charge 10%. Not tell other credit card companies what to charge.

GE said:

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This falls into the category of something that goes totally against free market principles that I believe in but I think could be a net benefit to society. People have way too much cc debt and lowering the rates will decrease it massively because credit will dry up and the balances won't grow so quickly.

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It going against the free market is exactly why we should not do it. It puts us on a very dangerous path.

This country was founded on individual responsibility.

We have stopped letting the idiots eliminate themselves.

Aggies1322 said:

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zephyr88 said:

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People taking huge 'loans' thru credit cards is the problem. Many of us are fortunate enough to be blessed with good jobs and never have to worry about bills, food, healthcare - but all of us know someone with some nightmare story about someone who is making minimum payments against a balance that they'll never be able to pay back. Some people call it 'bad luck', but it's really 'bad decisions'.

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That really doesn't have to be the case in 2024. My cousin was in that spot, until I explained that he could transfer the balance to a 0% apr for 18 months CC. So he did, then paid it back over that 18 months. He was considering taking a loan against his car that was free and clear. All he had to do was a quick balance transfer. Easy.

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That's a GOOD way to use cards. Thankfully, your cousin had someone like you in their life to explain the way to beat the system and, he had the discipline to do it. Bravo!

Unfortunately, for every good story, there's a bad one where someone who was already in semi-bad shape used their card to make yet another bad decision and it snowballs. Like someone already living paycheck to paycheck, making minimum payments, using their cards to go on a vacation.

Quote:

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You think you're pulling one over on Visa by paying your balance off every month?

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My million frequent flyer miles says 'hello'.

BTKAG97 said:

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If CCs are capped at 10% then it's going to be really difficult to get a CC if you have really bad or no credit less than perfect.

Credit limits will also stagnate and some people may see their's reduced.

Secured CCs may start increasing their share of the market.

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fify

I've used cards both idiotically and wisely. It is not the governments business either way.

Tom Fox said:

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I've used cards both idiotically and wisely. It is not the governments business either way.

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Agree.

Personal choices. Personal responsibilities.

Personal consequences.

Tom Fox said:

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GE said:

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This falls into the category of something that goes totally against free market principles that I believe in but I think could be a net benefit to society. People have way too much cc debt and lowering the rates will decrease it massively because credit will dry up and the balances won't grow so quickly.

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It going against the free market is exactly why we should not do it. It puts us on a very dangerous path.

This country was founded on individual responsibility.

We have stopped letting the idiots eliminate themselves.

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10 years ago I would have agreed with you completely but my views have shifted away from pure libertarianism recently to a more pragmatist approach. Not saying I'm right and in the long run there could be unintended and unforeseeable consequences that outweigh the financial benefits to the lower class that this 10% cap could have.

Part of why my views have shifted is more directly understanding the capacity of the average person and then considering that fully half of people have even more limited capacity than them. Not just intelligence but also in terms of morals and discipline, and that's not changing any time soon.

Then they die. It is not our responsibility to nanny state them.

I'd be on board with 20%. 10% is way too low, especially with current interest rates.

zephyr88 said:

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Tom Fox said:

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I've used cards both idiotically and wisely. It is not the governments business either way.

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Agree.

Personal choices. Personal responsibilities.

Personal consequences.

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My wallet. My choice.

This gives banks an excuse to demand bailouts from the taxpayer. It's like when gov demanded home loans be given to people with bad credit. When it blew up, the banks got taxpayer bailouts.

10% isn't enough to cover all the defaults. So without gov backstopping, banks would drastically tighten credit at 10% cap. Then our consumer economy tanks, along with your retirement account.

But that all said, it sounds and feels really good tho. I mean who likes high cc interest rates? This is like all of Bernie and liberal proposals. The path to hell is paved with good intentions.

BlueTaze said:

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This gives banks an excuse to demand bailouts from the taxpayer. It's like when gov demanded home loans be given to people with bad credit. When it blew up, the banks got taxpayer bailouts.

10% isn't enough to cover all the defaults. So without gov backstopping, banks will tighten credit. Then our consumer economy tanks, along with your retirement account.

But that all said, it sounds and feels really good tho. I mean who likes high cc interest rates?

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What bailouts are you referencing in 2008?

This thread just shows once again how many people actually support socialism.

How do you go from a free market capitalist to not?

I think they are too easy to get. All it takes is one missed payment to spiral into unending debt.

I think a 90 day grace period at 0-10% then higher rates would be a better solution. Otherwise people will max out their cards, declare bankruptcy and shack up with a friend with good credit.

Aggies1322 said:

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TheBonifaceOption said:

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BREAKING: Senator Bernie Sanders announces he will work with Trump to cap the credit card interest rates at 10%

— Eric Daugherty (@EricLDaugh) November 15, 2024

You know the state of the Democrat Party is bad when the far left loon is more moderate than the average thought leader on the left.

I for one would love to see this policy in place. Usury is wicked.

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You know that means that the average American will no longer have credit available to them, right? An unsecured credit product to everyday Americans comes with a ton of risk.. the banks will no longer take that risk if the govt caps what they can charge. Horrible policy imo.

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Good. Usery is wrong.

Bondag said:

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I think they are too easy to get. All it takes is one missed payment to spiral into unending debt.

I think a 90 day grace period at 0-10% then higher rates would be a better solution. Otherwise people will max out their cards, declare bankruptcy and shack up with a friend with good credit.

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Back in the day when I was young and poor, missing a payment date was a possibility due to US mail variability.

With the advent of the internet and auto payments, there's really no excuse for missing a payment these days.

People need to be free to make their own choices, but owning the consequences must also come with it.

Otherwise, you're pushing the cost of someone's bad decisions into the pocket of responsible people.