Why do people pay exorbitant interest rates?
Why do governments run down the utilities by not spending enough on them, sell them off and then criticise private ownership for raising tariffs to pay for the backlog of capital renewals?
Banks charge high interest rates because of the bad debts. It isn't a very profitable business, compared to commercial or mortgage lending. If the Govt. clamped down, credit cards would cease to exist (which would be a very good thing IMO).
