Higher losses among credit card lenders and higher rates for credit card users would greatly diminish both the availability and desirability of consumer credit. Fear of losses and the absence of a secondary market to unload risk would force lenders to more judiciously extend credit. Simultaneously, higher rates would reduce the appeal of credit card debt, causing fewer Americans to partake. FULL ARTICLE
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2 comments ↓
I never really thought of it this way. I’m no fan of credit card companies but do see that higher rates would scare off more people from using them. Maybe they should just mandate 14% interest rates on all new cards. That’ll help reduce this country’s debt load!
or, how about eliminating the income tax?
When government is the cause of most of our problems, why do so many people look to it as the solution too?
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