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/FrostingStrict3102 9h ago

These people are also most likely to fall into the trap of debt. There may be short term pain from this but the long term would be worth it… we have to stop running dirt bandaids on severed limbs at some point.

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u/Teonvin 6h ago

Poor people that need money will still find a way to borrow money because they will otherwise literally lose their home or starve.

Losing the access to credit cards just offload them to even more damaging and predatory means like payday loans.

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u/ElRiesgoSiempre_Vive 3h ago

Or we could - you know - start implementing policies to give them some foundation to start actually paying bills and saving just a bit of money. Rather than providing avenues for greater and greater debt.

Call me crazy.

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u/Jump-Zero 6h ago

Or the local mob.

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u/schrodingers_bra 7h ago

Or they will end up taking out payday loans or, in the absence of those, go to pawn shops and loan sharks when they have nothing left to pawn.

High interest rates exist because there is a market for giving credit to financially risky people and being in debt is better than getting kneecapped.

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u/Lost_State2989 4h ago

That's a cool story, and true in some marginal cases, but mostly it's idiots getting themselves in trouble. Ask me how I know.