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In his “Divine Comedy”, Italian poet Dante Alighieri has booked a special place in the seventh round of hell for people who charged conditional interest rates. Seven hundred years later, “Usury” does not appear much in common, but the problem has not disappeared. Last year, both Republicans and Democrats are campaigns Providing economic relief with diligent Americans, especially in terms of debt on the credit card. For too long, excessive banks to failure made huge profits, charging incredibly high interest rates on a credit card. That must be done. Because of this, we introduced the legislation with interest rates with credit cards with a maximum of 10%.
Americans drown in a record $ 1.17 trillion of debt on a credit card. Thanks to inflation and slow economy, many families have been forced to charge basics such as foods, gasoline and even renting on their credit cards, collecting deep debt. It’s unsustainable – and credit card companies know that. That’s why they increased interest rates so dramatically.
In the meantime, these companies are getting richer and richer. Only 2022 made a whopping $ 130 billion interest and fees after sending three billion requests that begged Americans to apply for their credit cards.
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And although large banks can borrow money of less than 4.5% of the federal reserves, a recent Forbes report has found that these same financial institutions charge an average consumer of 28.6% of credit card interest.
Changing interest rates on a credit card could save borrowers over $ 7000 during the Lobby Life. (Cyberguy.com)
Let’s be clear. When large financial institutions are charged over 25% of credit card interest, they are not engaged in a loan -available business. Are Participated in extortion and loan. And it needs to be done.
During the campaign, President Donald Trump set an idea we both support. In September is his campaign promised to limit interest rates With 10% to provide temporary and immediate help with diligent Americans struggling to make ends meet and cannot afford huge interest payments with a sudden jump in mortgage, rent, food and gas.
We agree. So we have introduced legislation fulfill Trump’s promise. In harmonizing interest rates on a credit card at 10% over the next five years, our account would give Americans the opportunity to compensate, offering really relief to work people.
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Visa, Mastercard and American Express will no doubt actively lobby the Congress against this legislation. That should not be a surprise. After all, in the last five years, these three huge credit cards have made over $ 145 billion profits and have paid almost $ 375 million fees to their executive directors. Their main argument against our account is that it can limit access to a low -income consumers’ loan.
They have it back. Our account would limit the financial institutions to charge the US Class of exploitation and predatory interest rates that can catch them in the vicious debt cycle.
Today, 28% interest rate on a $ 5,000 credit card state costs a consumer of as much as $ 11,000 interest and lasts up to 24 years to pay off. Challenging interest rates of credit card at 10% would save a consumer over $ 7,200 interest. Banks could still make over $ 3,700 from that consumer. They just wouldn’t succeed.
Our legislation is not radical. This is what the vast majority want. A recent poll showed that 77% of Americans support interest rate interest rates for interest rate.
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In harmonizing interest rates on a credit card at 10% over the next five years, our account would give Americans the opportunity to compensate, offering really relief to work people.
When too big banks on the verge of collapse 2008 after their greed and recklessness cited millions of Americans to lose their homes, work and life savings, taxpayers saved them with multi-trilion rescue. But when it comes to helping working families, it seems that Congress couldn’t worry less.
Now is the time for Congress to offer a tangible financial relief to work families struggling under the weight of immediate interest rates. Americans need relief. And we can provide this by adopting this critical legislation.
Republican Josh Hawley represents Missouri in the Senate of the United States and the author is “”Maleness: male virtues of America need. “
