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In a lot of cases I would be happy to have the creditors take the loss. The credit card companies are not simply innocent victims. They deliberately try to len
by pg 17y ago
In a lot of cases I would be happy to have the creditors take the loss. The credit card companies are not simply innocent victims. They deliberately try to lend money to people who will have trouble paying it back, because the longer people take to pay back the principal, the more interest they'll pay.
The cases where people incur too much debt even to pay the interest are just instances of the credit card companies' algorithm missing slightly-- like a torturer accidentally killing his victim.
- philwelch 17y agoIn a sense, this makes credit cards even worse than the Mafia. If you borrow money from the Mafia and don't pay back, they will maim or kill you, but they probably want to avoid that as it is expensive. If you borrow money from the credit card and don't pay back, the credit card gets to garnish your wages for life, which is a pretty nice deal for them. So the Mafia actually has its incentives better aligned with their creditors.