A friend contacted me the other day about a disturbing piece of mail he received- a credit card notice which most people don’t even open. This letter informed me of new information about changing credit card interest rates on new debt rolled over and debt created through spending.
What is worse is that this new interest rate might apply to monthly payments made, depending on the order in which the money comes into the card.
What is this new interest rate? It is 31% and on a Nordstrom credit card.
Credit card companies are pushing the envelope. However, President Trump has said that he would put caps on credit card interest rates and while price controlling is a dangerous path to take, I like the direction he is heading. However, unless Trump, Harris, or any groups of politicians get serious about the situation at hand, we are going to have a major problem on our hands.
We need a program that rewards consumers for getting out of debt, so we can begin mitigating the greediness of credit card companies. The solution? Interest rates need to start being controlled rather than capped. Only our politicians can solve these issues, yet this raises another complication: politicians will need to find the balance between finding a solution and making sure not to step too hard on the toes of their credit card politics-supporting friends.
Circling back to where we started, we always seem to come back to the same old problem of politicians wanting to hold their positions in office. However, these politicians are going to start seeing a much bigger problem if the great credit card walkout occurs and people start to walk away from their debt.
Bob Brooks is the host of the Prudent Money Radio Show, heard every weekday from 3:00 PM - 3:30 PM on FM Radio 91.3 KDKR
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