In a situation when Senator Bernie Sanders and Congresswoman Alexandria Ocasio Cortes achieve lower interest rates on credit cards to 15%, to assess the validity of this proposal should be based on one simple fact.
It lies in the fact that, as shown by a survey conducted in December last year, the website CreditCards.com that about a quarter of adult Americans believe that death will not extinguish the debt on the cards. However, 41% hopes that will pay off during the life, and the vast majority were respondents who were unable to confidently answer this question — they were 65%.
“This is an alarming statistic that, as we had hoped, will still more encouraging, — said the analyst CreditCards.com Ted Rossman. But once it so happened, it is necessary to do anything, including to get a second job or cut expenses so first and foremost get rid of debt on cards. Because the interest rate is much higher than for all other types of loans. Besides, it is hardly necessary to count on the fact that the bill was developed by Sanders and Ocasio-Cortez, will be adopted.”
The main condition for the expert considers that timely and full payment by cards. But received only 40% of respondents. Leaders in debt are mortgage (debt was present in 54% of the respondents), credit cards (53%), autostudy (47%), a student loan (21%), fees (13%) and personal loans (11%). The total amount of all types is steadily increasing, reaching in I quarter of this year, according to the Federal reserve Bank of new York, of 13.67 trillion dollars — more than in the third quarter of 2008, before the recession. And this increases the share of payments overdue by 90 days or more, and mainly talking about credit cards and student loans.
“You want to show more responsibility, summed up Rossman. But “minus” on the card, as a rule, is not formed due to the fact that its owners went on a cruise or shopping. Alas, the debts have to climb due to health problems, the need to repair the car or make home repairs, and sometimes — due to the lack of own funds at the most vital. In such a situation it is best not to be, and it is therefore necessary to do everything possible to live within your means and have a reserve in case of unforeseen circumstances.”