“There's this wild disconnect between what people are experiencing and what economists are experiencing,” says Nikki Cimino, a recruiter in Denver.

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[–] 40 points 2 years ago (2 children)

Or just common sense laws against predatory lending by capping interest rates.

Most people don't have a safety net and live paycheck to paycheck.

A huge expense comes up, and rather than get a bank loan at even 8-10%, it goes on a credit card

Companies have a tiny "minimum payment" because they don't want you to pay it off. They want that balance to grow while people ignore it. They don't want it back now, they want thousands more later.

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  • [–] 0 points 2 years ago (1 child)

    Pretty sure every cc has the minimum payment higher than the interest. If you just stop buying shit you'll pay it off eventually, even if you can only afford the minimum payment. The balance can't grow unless you're still buying shit.

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  • [–] 3 points 2 years ago* (last edited 2 years ago) (1 child)

    They codified that so yes you will pay it off eventually. It will no longer continue to grow forever. However it will take an excessively long amount of time. Like taking a 30-year mortgage to buy a bag of fuckin McDonalds.

    For example the couple above, 62 and 65, will almost assuredly be dead by the time they pay it off at minimum payment.

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