It's time to bring back usury laws.

[OzzyKP]

Don't use credit cards. How hard can it possibly be?

You've got to be wickedly stupid not to use credit cards as much as possible.

You've got fraud protection, warranty extension (usually), and I get essentially get 1% off every purchase and no annual fee. It also builds a good credit rating.

Just don't carry a balance. If you NEED to spend more than your means, use a line of credit to pay off the credit card.

Yea, I'd recommend getting one if for no other reason than to build credit. I resisted for a while and finally got one a bit ago. I have my bill automatically paid from my checking account, so it pretty much works exactly like a debit card as far as I'm concerned except it builds credit. One of these days I'll look into getting some fancy card with perks.

[VetLegion]

The issue here is whether the state should protect dumb people from bankrupting
themselves. I don't think it should. I don't see the big difference between someone
wasting his money on a big plasma TV and someone enjoying his brand new "pay two
dollars for each dollar spent!" credit card. Each of us is different.

[Dinner]

at anybody who thinks usury laws are a good idea.

I think banking should be regulated to the point were they cannot even think about peeing without permission. To do less risks money corrupting everything including the political system.

[onodera]

I'm not well-acquainted with your banking system, so please bear with me as I pester you with questions.
What does building a credit mean? Establishing a good credit history? What benefits does it have? Lower rates on future loans? Here in Russia only a bad credit history means anything, it means you won't get another loan.
Do many people use credit cards for their primary purpose, unlike Asher? Why do they do so? It might make sense here, with higher inflation overtaking the interest, but why do they do that in the US?
Can you get these other benefits Asher talked about when using a debit card? I can, here in Russia.

[Flubber]

at anybody who thinks usury laws are a good idea.

There have been points in my own life where an 80% APR would have been a good deal for me, relative to no loan. Credit is a good thing. If somebody needs money and is a default risk then why the hell do paternalistic jackasses think that preventing them from getting it does any good at all?

ahemm--if you are looking for paternalistic . .. .

:

In Canada, section 347 of the Criminal Code(1) makes it a criminal offence to charge more than 60% interest per annum.

:

I have mixed feelings on this. Like KH I wonder why government should get involved in a private business transaction. If I don't like the rate, I don't borrow . . But these laws are GENERALLY not aimed at protecting the college educated-- hell they are not really aimed at protecting people that can actually calculate compound interest

This in many ways is the same as "Diect Sellers" legislation (people can repudiate a contract made on their doorstep within a specified period without consequences-- this legislation has saved many people from bad contracts for long term supply of natural gas, electricity etc when their spouse got home and said "WTF did you sign?")

Both types of legislation are patenalistic. Unfortunately there ARE those folks that are not really that well wquipped to look after themselves.

[KrazyHorse]

Flubber, I have no idea why you think that I'd blindly agree with any law just because it's part of the Canadian Criminal Code...

[DirtyMartini]

If legitimate lenders are allowed to charge interest rates this high, what will all the loan sharks do? Won't someone please think of the mob!?!

[notyoueither]

Usury laws are irrelevant because of interstate banking. There is a race to the bottom in terms of "consumer protection".

I'm all for ensuring that consumers are protected against changes to the terms of their loans, especially on existing balances, and that all information is presented in a clear, unambiguous manner. But what the **** does this requirement have to do with government price controls (which is exactly what "usury laws" are)?

It should be legal to sell kidneys too. Of course no smart person would do it, so it's none of our concern.

[notyoueither]

ahemm--if you are looking for paternalistic . .. .





I have mixed feelings on this. Like KH I wonder why government should get involved in a private business transaction. If I don't like the rate, I don't borrow . . But these laws are GENERALLY not aimed at protecting the college educated-- hell they are not really aimed at protecting people that can actually calculate compound interest

This in many ways is the same as "Diect Sellers" legislation (people can repudiate a contract made on their doorstep within a specified period without consequences-- this legislation has saved many people from bad contracts for long term supply of natural gas, electricity etc when their spouse got home and said "WTF did you sign?")

Both types of legislation are patenalistic. Unfortunately there ARE those folks that are not really that well wquipped to look after themselves.

Indeed. Certain things should be regulated or banned because they take advantage of those who are desperate or who are not too bright.

If only an idiot or someone desperate would partake, should it be legal to buy or sell?

[Provost Harrison]

Well for one loan at the moment I am paying -0.4%. God bless student loans

[Ben Kenobi]

You've got to be wickedly stupid not to use credit cards as much as possible.

Why? I don't really need them.

You've got fraud protection, warranty extension (usually),

I've got fraud protection too. It's called cash. I don't have to worry about someone stealing my cc, because I don't have one.

I get essentially get 1% off every purchase and no annual fee.

Gee, ok. That would amount to about 3 dollars a month. Whoopie.

It also builds a good credit rating.

This is the best reason to have one. The alternative is to save up and use cash. I usually get discounts this way, that are well beyond the 1 percent.

[Skanky Burns]

This just in: Asher lives on $300 a month!

[Flubber]

Flubber, I have no idea why you think that I'd blindly agree with any law just because it's part of the Canadian Criminal Code...

You need to reread what I wrote. I never said or even implied that you would blindly agree with anything, let alone because its in the Canadian criminal code. I know I don't blindly agree with anything

[Asher]

This just in: Asher lives on $300 a month!

Yeah, no kidding.

The 1% return is amazing.

Partly because I charge and expense $8,000 PER MONTH for work stuff (Amazon EC2 accounts/bandwidth) on top of my everyday expenses (which are well in excess of $300/mo... I pay Rogers $360/mo alone ).

Ben is pretty retarded. Cash is bad in so many ways -- can't spend it online, its simply dirty, and it takes forever to pay for things.

I don't pay a cent to use my credit card and it generates money FOR ME and I can pay for things online...

[Flubber]

I've got fraud protection too. It's called cash. I don't have to worry about someone stealing my cc, because I don't have one.


.

ben -- I think Asher was talking fraud protection like if buy furniture from a dealer and they don't deliver, your visa will reverse the charge.

Oh and I like credit cards too and use mine constantly-- It gives me points, automatic recordkeeping and no need to carry large sums of cash. I pay off my card completely twice a month on my payday so I don't take full advantage of the available days of interest free credit