3 ms·
CC interest is high because: 1. Most people pay off the balance each month; the people who don't _really_ need the credit. 2. The default rate of those people
by charlesdm 11y ago
CC interest is high because:
1. Most people pay off the balance each month; the people who don't _really_ need the credit.
2. The default rate of those people is probably (very) high. Given a default means a bank loses their capital, they need to make it back somehow.
Also, a student loan with 12% interest? If the loan still carries a significant balance, she should refinance at a much lower interest rate (pledge some collateral if you have to, like a car/house/existing share portfolio).