Should We Outlaw Credit Cards?

The other day at coffee Rohan raised the possibility of outlawing credit cards entirely. The idea has appeal. Easy credit makes it too easy for people to drown in debt. And with such high limits on interest rates, credit card companies have turned into usury firms. Remember how the only thing that really pissed Jesus off was the money changers?

On the other hand, I was glad to have a credit card in college when my clients decided they didn't need to pay me until after my tuition deadline. Still, I could probably have come up with some other way to get the money to the bursar, especially if I didn't know I had the credit card backup.

So how about this: we outlaw credit cards for individuals while maintaining credit provisions for businesses. Debit cards have all the convenience without the quicksand, and they force the issue of only spending money that you actually have. At the very least personal credit cards should be way harder to get, with way lower credit limits, and way lower interest rates. And every high school should require all students to pass an economics class about how debt works and how to stay out of it.