A warning to credit card holders: The U.S. government’s borrowing problems could soon become your borrowing problems.
Right now, in Washington, politicians are fighting over whether to raise the U.S. debt ceiling — which determines the amount of money that the nation can spend on its debt — above $14.3 trillion. If the debt ceiling isn’t increased, the United States won’t have enough money to pay all of its bills. That could result in a default on its financial obligations.
If Barack Obama’s elected president, he says he’ll reform the way credit card issuers increase interest rates. And if that happens, he may end up helping out Sen. John McCain. According to newly released financial disclosure forms, McCain’s been paying an eye-popping 25.99 percent on his personal credit card.
Sorry, credit cardholders, last night’s rate cut was a bailout for investment bankers. Your cut comes tomorrow.