From Investing.com: 2025-01-10 02:02:00

Easy credit cards with high interest rates are a profitable swindle, extracting wealth from debtors who struggle to pay off ballooning balances. Decades of stagnant wages have made credit necessary to maintain the “American lifestyle,” but interest soon consumes income needed for essentials. Capping interest rates at 8% and late fees at $20 would force lenders to stop issuing cards to uncreditworthy households. Without easy credit, the reality of unaffordable essentials may lead to revolt. A debt jubilee is a temporary solution to a broken system, but the widening gap between earnings and expenses remains the core issue. Using financial fentanyl as a fix is unsustainable, potentially leading to awakening and revolt.



Read more at Investing.com: The Role of Debt in Sustaining a Fragile Economy