Anyone who knows me is aware of my concern that banks and credit card companies are gouging financially struggling families with crushingly high interest rates. Last Friday, the New York Times and the Washington Post ran stories that were very critical of the high interest rates charged by the banks, credit card companies and department stores. The reporters for these stories reached out to me for comment.
Millions of consumers live paycheck to paycheck and these are the same families suffering the burden of maintaining the profit streams of major banks. Consumers use credit cards as a social safety net for unexpected expenses. They then have a difficult time paying off the balance as accruing interest continually increases the overall outstanding balance making it nearly impossible to catch up. Often times, 50% or more of consumers’ monthly payments go to pay interest only.
Here are links to the stories:
NY Times Story: https://www.nytimes.com/2017/10/19/business/credit-cards-debt-banks.html
Washington Post Story: https://www.washingtonpost.com/news/business/wp/2017/10/20/retail-credit-cards-increasingly-come-with-perks-and-a-25-percent-interest-rate/?utm_term=.1f31c9fcd275
If you know someone who is struggling with overdue debts, as always, please have them call us for a bankruptcy consultation at 212-315-3755.