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It might be worth trying, but you are describing CDs with souped up interest rates. Many poor folks carry credit card balances at 15+% interest. Paying those o
by ptero 4y ago
It might be worth trying, but you are describing CDs with souped up interest rates.
Many poor folks carry credit card balances at 15+% interest. Paying those off would be much more efficient for them that those CDs. Unfortunately if they manage to pay their credit cards they soon start racking them up again.
- giantrobot 4y agoThis elides a more fundamental problem. For a lot of middle class earners, it's difficult to keep non-trivial amounts of cash on hand. So there's no cash to cover the cost of a broken appliance or repair on a car. A credit card is many people's only accessible $1k for some emergency bill. It's not that most people are maxing out credit cards on fur coats and caviar, they're paying for necessary and often unplanned expenses. They rack up credit card charges because as soon as they pay off one expense they get hit with another. This is especially true for people stuck with 15% interest rates.