The Reserve bank just lowered its rate. Would lowering Credit cards rates to this level for a few months provide immediate relief, if not, vital stimulus, to the whole economy?
Should Banks lower Interest on Credit Cards during Corona Crisis?
GOFYS on 20/03/2020 - 15:22
Comments
No. Credit cards shouldn't be used by people as a personal loan.
Reducing the interest on credit cards is just teaching people how to get buried in debt.
Wait? People have to learn that? I thought it was the default position?
Sorry, I was doing a few things at the same time.
The word I was looking for is encourage.
(And it would still be silly because no one needs that encouragement.)
OP username GOFYS
with credit cards debt
Nope.
If you want economic stimulus, without even hitting up tax payers, the electricity system should be nationalised again to mitigate the "severe damage" that it has been doing to the economy since it's inception.
The ACCC has already called it "unsustainable", because it's making large enterprises viable, prior to any pandemic occurring.
without even hitting up tax payers, the electricity system should be nationalised
Where's the money coming from?
No trivial questions please.
hahaha nice try OP, the correct way is dont use CC if you cant afford to pay in full at the end of the month.
geesus do you know lowering cc rate is actually destroying a country? because many will think "hey cheap free easy money, see this on ozb iphone pro $1,800 just buy it using CC we dont need to pay it off, interest is so cheap"
hey cheap free easy money, see this on ozb iphone pro $1,800 just buy it using CC we dont need to pay it off, interest is so cheap"
Isn't that how Afterpay and Zippay work? They are basically no-interest credit card.
Yes it's sooook great, I only have to pay $10 a week teehee
N. O.
No.
There are two types of credit card users: transactors and revolvers. Transactors are indifferent to the interest rate because they always pay off their monthly balance. Revolvers behave in the opposite way and pay the high penalty interest on the large outstanding balances. A small reduction in the interest rate makes virtually no difference to their predicament.
PS: credit card interest rates don't follow the cash rate, unlike mortgage rates.
Do you not pay off the full balance of your credit card every month?
If not, why not?