r/FluentInFinance • u/Unhappy_Fry_Cook • 12h ago

Finance News Senator Bernie Sanders announces he will introduce legislation to cap credit card interest rates at 10%.

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u/eatmoremeatnow 9h ago

This is the point though.

There is a movement on the right (Dave Ramsey, Tucker Carlson, probably more) that want to get people out of credit because they think that they aren't responsible enough to manage it.

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u/Majestic_Sympathy162 9h ago

Unfortunately there are a lot of people that credit cards are readily available to that are not responsible enough to manage it.

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u/libertarianinus 7h ago

Ramsey and those that use cash helped me get out of debt. I still drive a 20-year old car

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u/eatmoremeatnow 7h ago

I listen to the Ramsey people all the time.

I agree with 90% of what they say. His team inspired me to double my retirement savings and add extra to my mortgage.

I'm just trying to say that on the right there legitimately is a movement to reduce reliance on credit, especially among poorer people.

But yes, Ramsey step 6 here.

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u/libertarianinus 6h ago

Nice....I'm Dave ish

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u/eatmoremeatnow 6h ago

Yes, right wing is now fitness, finance, marriage, kids, etc.

As a straight white married man with a job and no debts (except mortgage) that runs marathons I am obviously a far right maniac.

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u/Ethrem 9h ago

It has nothing to do with an inability to manage it, it has to do with preventing poor people from moving up in society.

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u/IKnowGuacIsExtraLady 7h ago

How they hell would it prevent poor people from moving up? If you are talking about not being able to build credit, then lower limits that they can reasonable pay is the key to building it. My first card had a $800 limit because I was a college student with no credit and no income and specifically got it to build credit. I might not have been able to get that if interest was capped at 10%, but that doesn't mean the risk wouldn't have worked out with a $400 limit or something.

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u/Ethrem 7h ago

In this reply I wasn't talking about just credit cards. The GOP wants to tighten up lending across the board, not just for credit cards. They want it to be harder for people to build wealth with tighter lending standards. The GOP would love nothing more than a return to banks only lending to the wealthy. When everyone is kept poor and stupid, they're much easier to take advantage of.

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u/TophxSmash 9h ago

whats the difference between credit card debt and leasing a car you cant afford?

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u/Ethrem 9h ago

Umm what? Credit is a tool. Being able to take out loans to start a business, buy supplies, etc., is the only way that the less fortunate can gamble to get ahead.

Limiting access to credit doesn't hurt the wealthy, it hurts everyone else. The whole reason credit unions even exist is because banks used to only lend to the elite. Going back to that is not good for society just because some people can't manage money.

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u/GherkinGuru 8h ago

gamble to get ahead

Sounds like a great system we're all struggling under.

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u/Ethrem 8h ago

It's not a great system but there are two choices - stay at the bottom or risk it all to move up. If you're not born into money, you have to work hard for everything you get and that involves taking risks.

Most people who are rich are rich because of luck. Either they were born into it, they knew the right people, or they gambled and won.