The supporters of federal government want Americans to believe that there is no anomaly of this government behind the slowdown in the economy. The truth is never known to public.
What is more visible from the current affairs of federal government in talking about getting involved in Syria Conflicts could be certainly more negative move for the dumping economy. Why should Americans pay taxes or other duties for countries that are suspected in terror attacks? Haven’t America learnt any lessons from Israel attack?
On the other hand, the federal government needs more concentration on domestic financial measures. The average debt on an American is increasing day by day and has already crossed more than $15000 on an average whether under the belt of student loans or credit cards.
Since the start of the recession in 2008, some payday loan lenders have started earning in millions by charging enormous interest rates (which could be as high as 7000%) to those who are in serious debt. They are robbed by promoting payday loans falsely and in fact drawn to further invincible debt. Where are the usury laws? Where is the intervention of federal government in curbing these interest rates to affordable rates?
Payday loans are personal loans for bad credit. If the consumer has low credit score he is not eligible for routine low interest rate loans. However, if he has a secured job and aged more than 18 years then he can secure a payday loan against the regular monthly check received by him from his employer. This is short term financing but interest rate can be huge. APRs provided on the internet are often window dressed and when consumers finally signed a rate they are quite high than what has been published.
In fact, in 2012-2013 there were talks going on to curb the number of times the payday loans can be extended. The higher limit was proposed to 6. However, are these financial regulations going to reduce the debt or will they stop debtors taking temporary relief in terms of extension from payday loans repayments?
If federal government has not already noted then the payday loans lenders are smart enough to operate their entire world on internet so that they can never be traced physically and stay hidden from the regulatory inquiries.
The federal government will have to decide at what point of this debt market – whether at lending side or at borrowing side – they would like to put financial regulations. In neither case, they can’t afford Americans to suffer their entire life in debt. It would be good to see a less bad credit loan lender than a one more bad credit debtor.
All debt relief services are medicines and they don’t save a person from entering into the debt disease. The federal government will have to come out with some immunity to keep new people become the victims of this debt infection.