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> is there never minimal cost-benefit analysis? Of course not. A huge portion of the population has essentially no understanding of finances, which is why they
by dpark 8y ago
> is there never minimal cost-benefit analysis?
Of course not. A huge portion of the population has essentially no understanding of finances, which is why they need to do things like call to ask why their loan balance is going up. Worse, there is a feeling of helplessness when finances seem like a mystery, hence in this case actually needing someone else to tell them to call and ask.
This is why the cries of “free market!” when, e.g., discussing caps on usurious rates at payday loan companies are missing the point. People get trapped in debt with no way and no understanding of how to get out.
- jadell 8y agoSo more education is probably the answer. Too bad that home economics (as well as civics and other useful life-skills classes) have been systematically removed from the US education system. A class like home economics would be precisely where I'd expect to be educated about things like personal finances and debt.
- darkerside 8y agoThat's what bankruptcy is for. It's actually an elegant solution for uncontrolled personal debt. The problem is that we haven't figured out how to properly apply that tool (or an alternative) to higher education.
- peatmoss 8y agoI keep waiting for an article wherein the author details their move overseas and renunciation of US citizenship to start a debt-free life in Germany or Australia.
- mnm1 8y agoExactly. Now if only there was a way to educate people about such things so they could make better decisions. Oh wait ...