In the various bills coming out of Congress to address the economic hardships being experienced by everyday Americans…there are plans in place to help making/delaying mortgage payments…rent payments…delays in evictions…student loans…etc. Yes it is important to make sure everyone has stable housing during the stay at home environment.
And then we have the support checks for $1,200 arriving in our back accounts or mailboxes three weeks to three months from now. Something of a help…but probably not enough and probably not soon enough for a lot of people.
So what will those people do? They will probably fill the gaps with credit card purchases and cash advances. So when will Congress address credit card debt?
One of the big questions around credit cards is the exorbitant interest rates charged…even in a robust economy. And right now, when the fed rate is virtually zero…why aren’t we legislating credit card interest rates down?
I have gotten any number of very concerned letters and emails from the banks I do business with or have credit cards with letting me know they are here to help during the pandemic. And suggestions to increase use of online banking or apps to handle my financial transactions.
But nary a one has suggested that they are going to lower the interest rate (even for the short period we are stuck in this) or do anything to make it easier to make payments and protect my credit score. Why not?
Those most vulnerable to the current economic decline probably can’t get in much trouble with credit cards because they probably don’t have many. But those that do probably have rates in serious double digits. Those in the working and middle class that aren’t currently working will probably be tempted to use their cards and are the most likely to get into trouble.
So when will Congress get around to addressing credit card debt and credit card interest as part of the recovery bills they keep floating?