Re:US credit card defaults jump to highest level since 2010
by jghn on Monday December 30, 2024 @03:47PM
(#42553322)
I don't disagree but people talking about current rates as if they're terrible distort reality. It really wasn't that long ago (aughts) that rates in the 5/6% range were viewed as historically good. And I'm old enough to remember when rates in the teens were normal.
[ Parent
| on HN ]
Re:US credit card defaults jump to highest level since 2010
by polymathemagics on Monday December 30, 2024 @04:00PM
(#42553465)
Yeah, and for a lot of earners in high tax states, the effective interest rate you pay is essentially almost half off thanks to the mortgage interest tax deduction. If your marginal tax rate across federal / state / local is high (mine's 46%), then you can get back almost half the interest. Which shortens the gap between a 3% vs 6% mortgage, the effective difference being more like 1.5% than 3%.