""ripped off""
""create a scarcity in the availability of credit,""
""Such policies, even if they prove popular in the short-term, over time tend to hurt the exact populations that they intend to help,""
""Yes, it'll help on debt levels, household debt levels. But they won't be able to spend. The economy slows. Usually when the economy slows, unemployment tends to rise,""
A proposed 10% cap on credit-card interest is being pushed for by the president and has drawn both bipartisan support and Republican criticism. The cap could briefly ease affordability pressures for some consumers. Economists warn that an artificial interest-rate ceiling would create scarcity in credit availability, particularly affecting lower-income and subprime borrowers who rely on credit to make ends meet. Reduced access to credit may cause those households to cut spending, which could slow the economy and raise unemployment. Average U.S. credit card interest rates were cited as substantially higher than 10 percent in January.
Read at www.cbc.ca
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