To the editor: When I read about how high interest rates and credit card debt are affecting people in our state, I think about how most people who are not part of the 1% rely on credit cards to make a better living, but the interest rates have gone up on many credit cards. I just don't understand how the government allows this to happen. I remember when credit card interest was 6% to 10% and tax deductible. Somewhere along the line, the government decided to punish us for using credit cards by allowing credit card companies to charge whatever they wanted at usurious rates.
I keep asking our state senators and representatives to pass laws to control interest rates so that people who use credit cards are not punished. I never get a good response and no one seems to care. This is what keeps people poor. We need to demand credit card reform.
Linda Bradshaw Carpenter, Los Angeles
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To the editor: I applaud the state for adding financial literacy to graduation requirements in California high schools. But the irony of pairing that story with one that carried the headline “High Interest Rates Hit Californians Hardest” was hard to ignore. The reporters included some alarming statistics about rising credit card balances, defaults, and the effect high interest rates are having on the state’s housing crisis. All valid concerns.
High interest rates are only a financial burden for people who are in debt or considering taking out a loan. At the same time, these rates are beneficial to savers. Today, one can walk into almost any bank or credit union in Southern California, invest in a certificate of deposit or high-yield savings account, and receive between 2.5% and 5% interest, all insured by the government. The last time that opportunity existed, George W. Bush was president.
Still, the presumption throughout the entire article seems to be that debt is inevitable to achieving one's goals, but what message is that sending to our children? I wish journalists would explore alternatives to going deeper into debt, such as buying used items instead of new and using cash to avoid increasing credit card debt. The best financial education we can give young people is the daily example of living within our means.
Steven Felschundneff, Claremont
