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The shadow chancellor is planning new rules on credit card interest [Image: David/SilverHub/REX/Shutterstock].

Some commentators are tutting about John McDonnell’s plan to limit credit card interest repayments to twice the amount borrowed.

They say it may reduce the discouraging effect – people would no longer be put off borrowing when they can’t afford it.

But Conservative policies have driven people into the hands of payday lenders who charge huge rates of interest anyway!

People are being forced into debt by Tory pay repression and benefit persecution.

In such an environment, Mr McDonnell’s pledge must be welcome.

If not, why not?

People trapped in a spiral of credit card debt would be protected by a cap on their interest payments under a Labour government, John McDonnell, the shadow chancellor, will say on Monday.

Speaking at the party’s annual conference in Brighton, McDonnell will announce plans to help the more than 3 million people in Britain who are paying far more in interest payments than they borrowed.

Under the proposals there would be a total cap, meaning people would not have to pay back more than twice the amount of their credit card borrowings.

Source: Labour to pledge help for millions trapped by credit card debt | Politics | The Guardian


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