Clark Howard was on the radio. I'm a fan. I listen whenever I can . He's a very good consumer advocate. Mr. Howard teaches me a lot. Being a consumer advocate is my "road not taken". At one time, I was poised for that career, then decided to do something different. My interest did not wain, however.
Today, a caller was in trouble over credit card debt. This is a recurring problem on Mr. Howard's program. My grandsons are also in deep credit card debt. They have ruined their credit ratings. I learn that some people are paying 26% interest on their unpaid balances. That is outrageous! The credit card companies should be ashamed of themselves, but they get away with it because some time ago, We repealed the usury laws. Usury laws set a limit on interest that can be charged on a debt.
I think it was during the Ford administration that usury laws were repealed. We were having a terrible time with inflation. Remember the button, "WIN"? It meant, "whip inflation now". President Ford wore a "WIN" button. Inflation was running at double digits. Usury laws held borrowing to less than 5% interest. (I think it was 5%.) Banks stopped granting mortgages, because by lending money, they lost money as the loan was repaid. The economy was coming to a halt, so congress repealed the usury laws so banks could make a profit when they granted a mortgage.
Now the situation is completely out of hand. Banks look at credit reports and find any excuse to raise the interest rate. We no longer pay cash for things. We're a credit card country. Everyone needs a credit card. Young workers are particularly vulnerable. So are college students. It is too easy to get sucked under so much debt, the choice is to declare bankruptcy or keep paying more in interest than what the item cost in the first place. (Why can't people do without an electronic item until they can pay cash for it?)
Hospitals are now charging interest on medical bills past due. What does a person do when a medical emergency strikes in their family? I should think it is reasonable to work a payment schedule out with medical billing...and pay in installments until the debt is paid. At least, let the patient pay principle first. I don't think there should be any interest payment on medical bills as long as the patient is making regular payments.
I think congress should reinstate the usury laws to prevent the credit card companies from becoming predators. I think people should practice more self discipline. Set goals. Save money. Pay cash. Thumb nose at interest payments.
Today, a caller was in trouble over credit card debt. This is a recurring problem on Mr. Howard's program. My grandsons are also in deep credit card debt. They have ruined their credit ratings. I learn that some people are paying 26% interest on their unpaid balances. That is outrageous! The credit card companies should be ashamed of themselves, but they get away with it because some time ago, We repealed the usury laws. Usury laws set a limit on interest that can be charged on a debt.
I think it was during the Ford administration that usury laws were repealed. We were having a terrible time with inflation. Remember the button, "WIN"? It meant, "whip inflation now". President Ford wore a "WIN" button. Inflation was running at double digits. Usury laws held borrowing to less than 5% interest. (I think it was 5%.) Banks stopped granting mortgages, because by lending money, they lost money as the loan was repaid. The economy was coming to a halt, so congress repealed the usury laws so banks could make a profit when they granted a mortgage.
Now the situation is completely out of hand. Banks look at credit reports and find any excuse to raise the interest rate. We no longer pay cash for things. We're a credit card country. Everyone needs a credit card. Young workers are particularly vulnerable. So are college students. It is too easy to get sucked under so much debt, the choice is to declare bankruptcy or keep paying more in interest than what the item cost in the first place. (Why can't people do without an electronic item until they can pay cash for it?)
Hospitals are now charging interest on medical bills past due. What does a person do when a medical emergency strikes in their family? I should think it is reasonable to work a payment schedule out with medical billing...and pay in installments until the debt is paid. At least, let the patient pay principle first. I don't think there should be any interest payment on medical bills as long as the patient is making regular payments.
I think congress should reinstate the usury laws to prevent the credit card companies from becoming predators. I think people should practice more self discipline. Set goals. Save money. Pay cash. Thumb nose at interest payments.
posted by gardenbug at Wednesday, July 05, 2006
2 Comments:
I think that the whole medical system is crumbling under its own weight, and while I would like to blame the system, sadly - I think the blame lies squarely with the consumer. Some time in the late 70's or early 80's, people got the idea that suing the medical profession was the answer to their problems. Certainly, some of those lawsuits are justified. Others take up the courts' time and cost everyone else in increased insurance premiums and health care costs. I read that the number one reason people file bankruptcy in the USA is over medical care costs. It's shameful.
I don't like medical insurance because it pays the salaries of a lot of clerks...adds to the cost. I also don't like having my insurance company telling me what doctor I have to go to ..telling me some proceedure is unnecessary, if my doctor thinks it is. I don't like it that the cost for a proceedure goes up when the physician finds out you have insurance. As you know, I work with a wholeistic physician who keeps me healthy by subscribing nutritional supplements. She monitors my health very well. None of this is covered under Medicare. I pay out of pocket. I wish I could set up a medical cost account...saving up my own money, under my control, and paying for my medical costs myself. These accounts should be tax free and could only be used for medical expenses...all expenses including doctor, hospital, medications, nutritional supplements...and so on. This would completely by-pass the government and all those clerks in insurance companies and in government making decisions for me. The system would be simple and cost effective. I like to be completely in control of my life....especially my health.
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