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I'm partial to an even simpler solution: Make it easier to go into bankruptcy, and discharge the loan in bankruptcy. If your debt load is unsustainable, such t
by lostdog 7y ago
I'm partial to an even simpler solution: Make it easier to go into bankruptcy, and discharge the loan in bankruptcy.
If your debt load is unsustainable, such that your interest payments are more than XX% of your income, then you effectively already are bankrupt. We can either try to get people back on their feet, or let their debtors grind them into the dirt for a while longer.
- tptacek 7y agoIn reality, credit card companies will already settle for a fraction of owed principal if they believe you're seriously considering bankruptcy --- I've personally watched them come down to less than 20%, and my understanding is that people who are good at these negotiations can get them much lower still.
- patio11 7y agoCan confirm. Remember, a) if they sell it to a debt collector, they're probably selling at 3 to 5 cents on the dollar [+] and b) they can't sell it, at all, if your bankruptcy notification gets to them before the Big Ponderous Corporate Process pulls your account into their package being sold to a debt collector. [+] More if they haven't worked it a lot internally or if it is sold while fresh or if you look like someone who is extremely collectible but let's say "Typical case for people who are on verge of bankruptcy" pushes you waaaaay down the stack on all possible ways to price debt.
- deleted 7y ago[deleted]