Tuesday, April 29, 2008

The Evil of 30% Interest Rates.

The Evil of 30% Interest Rates.
lol, do I really have to spell out the evil of 30% interest rates? Apparently yes. They'll cut to the Chase, Watch ova ya, Bankrupt Our Assets, Master our Domain, and basically reduce our Capital to next to nothing. Credit card companies are not completely evil, however 30% interest rates, are.

When will the banking industry admit that perpetually in debt consumers need to be given a break if they have been dutifully paying exorbitant credit-card interest rates for years on end. If a bank can effectively make money charging the equivalent of 40% to 50% compounded annual interest on unending credit card debt, why would they have any desire to invest in a small business venture? Allowing banks to charge such high interest rates is causing the banks to not want to do anything else but keep people in debt at high interest rates. Banks have become addicted to high credit card interest rates and they are bringing down the worlds economy in the process. If not the worlds economy, most definitely they are bringing down the economy of the United States.

Not only do banks overcharge on credit card interest rates at an obscene level, but the profits are then used to set up industry in other countries that in turn reduce job opportunities in our own country! As you get more and more in debt, your chance of getting out of debt decrease because the excessive interest you are paying goes to fund job opportunities IN OTHER PARTS OF THE WORLD. Eventually the overseas investments trickle back in the form of low cost products that then help you "save" a minimal amount of money. Now you know why Walmart is so popular.

Banks collected 17 billion dollars in "fees and penalties" in 2007. The banking system of overcharging on credit card interest rates and then reinvesting that money in other countries is putting americans out on the streets. If you had to choose between a gas tax "holiday", or cessation of all interest charges on an existing credit card once a person has over time paid back 50% in interest versus what they originally borrowed, we can quickly see how inconsequential a gas tax holiday really is. lol, but at present time we can't even expect the gas tax holiday either.

I started two websites that explore the evil of high credit card interest rates and offer solutions that don't cripple the banks ability to make money while offering a chance for consumers to reduce their own debt.

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