Quote Originally Posted by TinCow View Post
While this is true, I don't think that even a radical move like eliminating credit cards will solve that problem. There are many, many businesses that thrive off of usurious interest rates. Everything from used car dealers to furniture stores to 'debt consolidation' agencies. If you want to see how bad this problem has gotten, you need look no further than Rent N' Roll. That's right... you can buy car tires and rims with a custom loan. As long as people are willing to take out loans to buy chrome rims, this problem will continue. Even without credit cards, people will find ways to get loans they cannot afford. Education needs to be the first line of defense. Once people know how to live off a balanced budget, the usurers will cease to be a problem.
The problem is basically solved if the only ones providing irresponsible loans are black market loansharks.

Why it's a radical idea to demand that loan providers are responsible and make sure that the people they are lending money to are actually capable of repaying is quite frankly beyond me.

The people working at a bank have 3+ years of economic education. Of course they know more about how to handle your economy than you do, that's why they work at a bank and are allowed to lend money to people; they are supposed to use that knowledge to help people make sound economic choices, just like a mechanic is there to help you take care of your car.