Stimulate The Economy Without Government Spending

Reduce the maximum interest chargeable on credit card debt. Reducing this interest rate does not cost our government any money at all.

If it is reduced to 12% or less, many times many home owners and others will be able to carry their debt, both credit card and other. This measure would enable credit card useage with far less fear.

This measure would not effect the current balance sheets of the credit card companies, but it would nominally reduce their income going forward on debts at interest higher than the new reduced maximum. But most of those owing that debt are likely "underwater" already and will default now or in the near future.

Reducing the interest rate may actually moderately increase the income of the credit card companies since more of those "on the edge" will be able to make their payments. For this reason, voluntarily reducing their rates might help the credit card company's incomes.

In any case, this issue must be addressed by experts. But overall, reducing the maximum credit card rate to a maximum of 12% or less would significantly stimulate consumer spending without any government spending.