Quote Of The Day
Israelis complain about over-draft, but in the United States of America there is no over-draft. As soon as you reach "minus" - they fine you immediately, and you need to request to pay the debt via credit card..
--- Bank of Israel Governor Stanley Fisher in a discussion in Knesset Finance COmmittee about bank fees and interest rates
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Not always. You can get overdraft protection if you have a good credit record and it's only the occasional dip.
ReplyDeleteBut in the US you can keep credit card debt. In Israel, the entire balance is deducted from your account at the end of the month. So, essentially it is the same, other than the monthly minimum payment.
ReplyDeleteThere are today in Israel visa cards that enable you to keep credit card debt.
ReplyDeleteThe problem is that the banks and the big players in the market want you to buy flats,take big mortgages and consume always more. The way to do it is to enable people to run into debt by enabling them to live on overdraft and they can charge interest.
So Fisher as Governor of the Bank of Israel should really put in order his house.
Wait, haven't we learned how credit card debt keeps people poor, and makes it impossible for generations to become wealthy? Haven't we see how much allowing huge amounts of debt causes the economy to bubble and then crash? Why would anyone want to emulate the American debt system?
ReplyDelete