To the editor: When studying how high interest rates and credit card debt hurt people in our state, I take into consideration how most people who find themselves not a part of the 1% depend on bank cards to assist them dwell a greater life, however rates of interest went up on quite a lot of bank cards. I simply don’t perceive how the federal government is permitting this to occur. I keep in mind when bank card curiosity was 6% to 10% and tax deductible. Someplace the federal government determined to punish us for utilizing bank cards by permitting the bank card firms to cost no matter they please at mortgage shark charges.
I hold asking our state senators and representatives about legal guidelines to manage the rates of interest, in order that individuals who use bank cards gained’t get punished. I by no means get reply and no one ever appears to care. That is what retains individuals poor. We have to demand bank card reform.
Linda Bradshaw Carpenter, Los Angeles
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To the editor: I applaud the state for including monetary literacy to the commencement necessities at California excessive colleges. However the irony of pairing that story with the one bearing the headline, “Excessive rates of interest hitting Californians tougher,” was troublesome to disregard. The reporters included some alarming statistics about rising bank card balances, defaults and the impact excessive rates of interest have on the state’s housing disaster. All of that are legitimate considerations.
Excessive rates of interest are solely a monetary burden to people who find themselves in debt or contemplating taking out a mortgage. On the similar time, these charges are useful to savers. Proper now one can stroll into nearly any financial institution or credit score union in Southern California, spend money on a certificates of deposit or high-yield financial savings account, and obtain wherever from 2.5% to five% curiosity and it’s authorities insured. The final time that chance existed, George W. Bush was president.
Nonetheless, the presumption all through the story appears to be that debt is unavoidable to be able to obtain one’s objectives, however what message is that sending to our kids? I want the reporters explored options to going additional into debt, corresponding to shopping for used as a substitute of recent and utilizing money to keep away from including to your bank card debt. One of the best monetary training we can provide younger individuals is the day-to-day instance of dwelling inside our means.
Steven Felschundneff, Claremont