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I'm not sure what to take from this. It makes it less punishing to not make your payment on time, but is that a good thing? If you make this a habit, you will
by trey-jones 3y ago
I'm not sure what to take from this. It makes it less punishing to not make your payment on time, but is that a good thing? If you make this a habit, you will eventually end up spending more on interest than you do on groceries...
On the other hand, "You don't have the money to pay us, now you owe us more money!" is always kind of an interesting dynamic, on the order of "the beatings will continue until morale improves."
I'm not saying that this is a bad thing, just that it doesn't seem like a huge win for consumers. My bias is that this is not something that I deal with often (being late on CC payment).
- ars 3y agoThere are a lot of people who always run balances, so interest is always accruing. It won't change a whole lot for them in that regard. There's probably people on the margin will will pay late, then be hit with interest. Or they'll be late and cancel their no-interest grace period. Banks are complaining about this, but I think in the net their income won't change all that much. They'll probably also rates rates slightly, and/or make penalty interest rates more common, or stricter.
- aaomidi 3y agoWhy are we punishing people for being poor again? Stick with the interest fee. Late fees make absolutely no sense
- matchbok 3y agoThen don't use a credit card. Simple.
- aaomidi 3y agoAlternatively: I live in a system where I can have government reduce the power of companies. I’ll do that instead.
- matchbok 3y agoThis isn't reducing the power of any company. The money and fees will be shifted around. This accomplishes nothing other than encouraging people to rack up more debt.
- bigstrat2003 3y agoI'm neutral on this subject, but I don't think "punishing people for being poor" is an accurate framing at all. It's more like "punishing people for making bad financial decisions".