Letter: credit card use
Consumer spending is the fastest and most efficient way to stimulate the economy and we’re now in a boat where very few can afford to buy anything anymore, partly because people are struggling to make ends meet in the household and in most cases it’s a household that, because of the business economy, monthly income has been reduced due to mandatory furloughs and layoffs.
Using a credit card when the cash flow is limited is almost impossible for average consumer to avoid. The problem is that because of the interest rates, consumers end up owing so much more than what they borrow and end up in a bigger hole. The government continues to make the stand that the economy needs to be stimulated, but where’s the assistance to the consumer?
The lending practices of creditors that offer credit cards are what’s damaging to the economy. Credit card companies trap customers in a debt cycle that they cannot free themselves from, leaving them unable to support the economy through continued spending. Without healthy consumer spending the economy will continue to fail.
The government needs to step in and regulate these credit card companies so high interest rates and outrageous fees aren’t crippling American citizens and allow citizens to start putting money back into the economy instead of the pockets of the CEO’s of unfair credit card companies.
If the government mandated the credit card companies to take a just a few measures to help consumers pay the debt they’d find that the overall credit card debt would be reduced. And, with less bankruptcies, court costs and debts that will never be recovered, the credit card companies really wouldn’t be losing precious profits. Sounds like a win-win to me.