Congress should target credit card interest rates
If our Congress really wanted to help the middle class, then they should pass legislation to reign in the usurious interest rates charged by credit card issuers. Why should these firms be allowed to charge usually 14-25 percent interest? Also, why are they allowed to charge late fees of $25 to $35 for missing a payment in that range? No wonder so many people are drowning in debt and filing bankruptcy.
Congress should pass laws restricting interest rates on balances to 6 percent (600 basis points) over the prime rate set by the Federal Reserve Bank. Also, late charges should be forbidden. If cardholders miss two payments, their credit cards should be canceled. I believe these actions would help the middle class immensely, even more so than the "huge tax cuts" to come, which we hear about ad nauseam.
We all know that the top 2 percent will make out really well, and the Middle class not so much.
John P. Brady