Chuck Frank wrote:
If it could be used for anything, then I would reinstate the income tax deduction and even add a credit for credit card and personal loan interest.
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It's not that unusual for people to have accrued more in CC debt than the balance on their morgage.
I completely disagree, or maybe I'm not understanding and need clarification. This proposal sounds like American taxpayers would foot the bill to reward those individuals who are most financially irresponsible, for being financially irresponsible.
Chuck Frank wrote:
It's criminal the way that the near monopoly credit card issuers are jacking up interest rates on credit granted under a much lower rate agreement with the card holder.
Since those "contracts" can be thrown out at will by the banks (who were bailed out with those same cardholder's tax money) What is to stop them from doing the same with instruments such as morgages and business loans? What if you suddenly received a letter in the mail from your morgage company saying your 6% fixed rate morgage was being jacked up to 27%?
Apples and oranges - while a mortgage really is a contract, a credit card agreement is anything but. Read the fine print on any credit card agreement, and you'll quickly see all the marketing fluff offers no real guarantees to the consumer. Credit card companies typically offer low interest rates for a very limited timeframe, obviously for one reason - to attract new customers.