Comments on: Can high credit card interest rates promote recession? http://creditopics.com/creditbuzz/corporations/can-high-credit-card-interest-rates-promote-recession/ Credit and Financial Topics that Matter to You! Wed, 17 Mar 2010 05:47:16 +0000 http://wordpress.org/?v=2.9.1 hourly 1 By: Thin Kaboudit http://creditopics.com/creditbuzz/corporations/can-high-credit-card-interest-rates-promote-recession/comment-page-1/#comment-91 Thin Kaboudit Sat, 16 Aug 2008 13:28:55 +0000 http://creditopics.com/creditbuzz/corporations/can-high-credit-card-interest-rates-promote-recession/#comment-91 Actually, high credit interest rates USUALLY help fend off recession, if you think about it: in a free market, the interest rate you qualify for depends on how well you have handled loans (which is all a credit card is!) in the past. The better job you have done, the lower rate you qualify for. Consequently, people who are lousy at handling money typically end up with prohibitively high rates, whereas those who "oil the wheels of commerce" with their better money skills will get the lowest rates, encouraging them to keep on doing whatever they are doing. When government gets involved in the personal debt industry(other than to prevent the stupid from fraud), good things rarely happen... Actually, high credit interest rates USUALLY help fend off recession, if you think about it: in a free market, the interest rate you qualify for depends on how well you have handled loans (which is all a credit card is!) in the past. The better job you have done, the lower rate you qualify for.

Consequently, people who are lousy at handling money typically end up with prohibitively high rates, whereas those who “oil the wheels of commerce” with their better money skills will get the lowest rates, encouraging them to keep on doing whatever they are doing.

When government gets involved in the personal debt industry(other than to prevent the stupid from fraud), good things rarely happen…

]]> By: trucknut http://creditopics.com/creditbuzz/corporations/can-high-credit-card-interest-rates-promote-recession/comment-page-1/#comment-90 trucknut Wed, 13 Aug 2008 11:52:18 +0000 http://creditopics.com/creditbuzz/corporations/can-high-credit-card-interest-rates-promote-recession/#comment-90 Yes,because it lessens the amount of money you would have for future purchases. Yes,because it lessens the amount of money you would have for future purchases.

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