Should there be a cap on interest rates on debt which is means tested?

Question

I personally believe that more should be done to help prevent people spiralling into crippling debt.  Should debt & loan companies have a cap on the interest rates their allowed to charge which is dependent on the persons income?

Answer

So you want people who make more money to have higher interest rates and more interest to pay back? 🥴

Answer

I think everything (whether it’s credit cards, car loans, or student loans, etc.,) should absolutely have an interest rate cap. However, I don’t think it should depend on income. It should be the same across the board.

Answer

Maybe more education instead of punishing those with higher earnings. The issue isn’t really high interest rates but maybe the materialism and competition of our culture, and ease of obtaining loan after loan. How would lower interest rates help people in lower earning brackets stay out of debt?

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Absolutely not. Interest rates based on income in absurd. Just because someone makes more, doesn’t mean they should have to make up for those who don’t make as much. Credit should always be the deciding factor in interest rates.

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The interest rates should be universal for that type of loan.
Also, it amazes me how many types of loans the average person has, makes my head hurt.

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Yes there should be a cap on interest rates. No it shouldnt be dependant on income. Should be the same across the board.

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Interest rates shouldn’t exist at all. Outrageous, I know.

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It shouldn't be income based, but there should definitely be a cap. Paying 30% interest is ridiculous. Especially when most necessary things are expensive to the point of having to have a loan or credit card. Not to mention the interest rates on student loans are part of the reason why college kids are in crippling debt.

Answer

Absolutely not. Why would you want to punish people why are striving to be successful, more productive members of society? If lower income people are the ones with all the incentives then there's no reason to want to pursue anything more.

Answer

What would be the cap though? I don’t think it should be based of income since you are punishing high earners.

Should there be a cap on interest rates on debt which is means tested?

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