Take a look.
I have to admit, interest rates are high, on the other hand credit card debt is actually high risk unsecured debt. After falling for several years credit card delinquencies are rising again.
Using credit cards people tend to spend more and care less about what an item costs. And studies have shown that credit card spending is mostly for everyday purchases, but not necessarily necessities.
But here is the point for Sen Sanders, while it appears desirable to lower interest rates, the reality is that such a move will simply encourage more spending on credit as the interest portion of payments declines account balances will increase with the result of no change or perhaps higher monthly payments and over time higher total interest payments.
By the way, the average credit card balance from month to month is less than half the amount Sen Sander’s quotes.
Categories: Observations on life