While compound interest may not be great for the person who took the loan, it is great for the loaner or investor. If I where to look for an investing opportunity I always look for when the interest is rolled into the principle. Daily compounding interest is the fastest and surest path to wealth.
Now, compounding interest isn't so great for the person who has the loan. While I can feel the pain of those people being robbed by compounding interest, the terms should always be read and understood before an agreement is made.
Instead, the greatest debt-related threat to the solvency of the United States government and the value of the dollar could be the fact that the US isn't actually making any net principal or interest payments on its debt.That is the US government is borrowing money to make the interest payments, even as it borrows to roll over the principal payments even as it borrows still more to fund the general spending which is in excess of taxes collected.This Creates the risk of a potential compounding and acceleration of interest payments on that debt.
No, banks should not have a more viable alternative to compounding interest rates, because compounding interest rates are an easy way to conduct banking. Consumers can understand compound interest rates. It is a clear way to have banking that is less subject to fraud and manipulation than other incentive programs.
No, banks should not have a more viable alternative to compounding interest rates. People dist like compounding interest rates which is why they would like a better choice. What they need to consider is what the bank is actually doing for them. They are lending out money in the hopes that it will be paid back. It is a business and they have to make money and be smart. The compounding interest rates do just that.
No, I do not think that they need an alternative to compounding interest, because this method has been used for a long time, and it has shown to be a very effective method. They do not need to try to fix something that is not broke, and this is not.