I'm getting very frustrated that banks can still get away with charging 15% or 20% or even 30% on credit cards while the rest of the economy is seeing interest rates around 1-percent or even less.
I know, the banks are charging such high rates because of the risk that unsecured credit card loans present. Well, that's too bad.
There used to be usury laws that prevented such high rates, and with overall rates in the economy now so low -- with mortgages at 4% and car loans at 1% and CD rates at 1% -- credit card rates above ten or 15% are just too high.
Now, why won't the state and federal legislators deal with this? Are they getting too much campaign money from the banks? Are the banks crying that they will have to raise other rates if credit card rates are lowered? Let's find out.
Consumers with high debt loads will never be able to claw their way out of debt paying 30% interest. And high rates will prevent borrowing and new purchases.
And yes, there are small business people who do need credit card loans to start and maintain their businesses.
It's time to cut rates, and cap them at low levels. And this is the time, when the economy really needs a boost in spending and debt reduction.