4 ms·
What is the incentive to pay it off at all, if it will be forgiven in X years?
by rabidrat 8y ago
What is the incentive to pay it off at all, if it will be forgiven in X years?
- logfromblammo 8y agoSo that lenders will keep loaning you money when you need it, and on better terms. Lending terms will tighten up as the jubilee deadline approaches. If it's only 5 years away, lenders will not even bother calculating payoff periods further than 5 years into the future, minus the amount of time required to file and collect on any lawsuits for nonpayment. If a state actually hits a jubilee with debt still on its books, it will quickly find that borrowing becomes a much weaker tool in its fiscal toolbox. It might also help to make all persons holding elected office with budgeting or spending authority at any time during the state's indebtedness to become ineligible to hold such offices for Y years after a jubilee.