> But they look at everyone else with similar income and credit and look a the default rate and figure out what they need to charge to make a profit. But don't

> But they look at everyone else with similar income and credit and look a the default rate and figure out what they need to charge to make a profit. But don't these number take into account the fact that the average person is scared/ashamed of defaulting? If personally declaring bankruptcy were much more common, would interest rates be where they are right now?