Any successful stimulus package must address credit card interest rates. This would have an immediate and positive impact on the economy.
There are a few states that already cap interest rates, but for the rest of us, 21-29% (and higher) is very common and would be considered usury under most other circumstances.
Lowering the prime rate does not help because the banks changed their terms over the last few years to include a little gem like this: your rate is prime plus X but will never be lower than YY... in a nut shell, credit card bills are not going down!
It%26#039;s time to federally regulate interest rates on credit cards, so why are they seemingly doing nothing about it?
Any successful stimulus package must address credit card interest rates. Right? Why aren%26#039;t they including it?bridge loan
WRONG. Any SUCCESSFUL stimulus package WILL NOT address ANY interest rates. The ONLY meaningful stimulus is ACROSS THE BOARD tax cuts. Allowing people to KEEP what they earn encourages they to EARN. Everything in the so called stimulus package is designed SOLELY to get VOTES in November.
Any successful stimulus package must address credit card interest rates. Right? Why aren%26#039;t they including it? loan
The theory behind the %26quot;stimulus package%26quot; is to get people to immediately spend money, resulting in more income for businesses. Whether that really works is a separate question. As to your specific question, if credit card interest rates were lowered, would that cause people to immediately spend more money to buy goods and services? I%26#039;m guessing that they probably don%26#039;t think it would, and thus that is why it is not included.
Re: Additional details
No, that is not clear at all. The majority of U.S. households have no credit card debt (I%26#039;m one of them). And most of those that do, do not regulate their spending based on interest rates. Lowering credit card interest rates would have no effect on most people%26#039;s spending.
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