Fast-forward 100 years: US citizens post-Reagan-Bush?In 1987, Ronald Reagan’s government decreed that consumers—you and I—would no longer be able to deduct the usurious interest rates on consumer loans and credit cards of all sorts. (And we really didn’t even know, then, what usurious was.)
No interest would be deductible except that on home equity loans. Needless to say, we all went scampering off to our friendly banker to turn our consumer debt into liens on our homes.
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1 comment:
Thought-provoking article. I never really thought about this in those terms (slaps forehead!). I guess I was lucky to be raised in a cash-based household: my parents' only debt was their mortgage, which was probably paid off long before the advent of home equity loans.
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