4 ms·

Clearly default and a lifetime of ruined credit is the better option.

by journalctl 7y ago

pc86 7y ago
Literally nothing can result in a lifetime of ruined credit other than a lifetime of not paying your bills.
- PopeDotNinja 7y ago
  Except student loans in the USA. They can't be discharged and the debt never goes away. Unpaid student loans will haunt you forever.
  - pc86 7y ago
    Like I said. A lifetime of not paying your bills.
  - deleted 7y ago
    [deleted]
  - ac29 7y ago
    > student loans in the USA. They can't be discharged and the debt never goes away. Yeah, this is a common myth. Student loan payments in the US are limited to 10% of discretionary income for up to 20 years. If you make too little to pay off your loans on the standard 10 year plan you aren't just saddled with the debt forever. https://studentaid.ed.gov/sa/repay-loans/understand/plans/income-driven https://studentaid.ed.gov/sa/repay-loans/understand/plans/in...
    - dragonwriter 7y ago
      > Student loan payments in the US are limited to 10% of discretionary income for up to 20 years. No, they aren’t. You can choose an income contingent repayment plan that is limited that way, but it's not the default and servicers steer people beat served by those plans away from them in favor of staying on the standard plans and taking deferments.
    - journalctl 7y ago
      Yeah, federal loans. Private student loans are basically usury.
aripickar 7y ago
I'm saying that bankruptcy at 22 or however young is the much better option. You get it discharged before 30, and so it doesn't even impact the terms you get if you're trying to buy a house for a lot of people. If your options are bad credit for 7 years in your 20's, or 250k in debt, then everyone is going to choose the bad credit every time.
- MiracleUser 7y ago
  maybe that's how it should be. Then kids wont get approved for 250k loans due to the risk and colleges will have to either ask for more money upfront (good luck), expect less students (not good for funding), or lower tuition.
- journalctl 7y ago
  Bankruptcy is ten years now, for what it’s worth.

Clearly default and a lifetime of ruined credit is the better option.

pc86 7y ago

Literally nothing can result in a lifetime of ruined credit other than a lifetime of not paying your bills.

PopeDotNinja 7y ago
Except student loans in the USA. They can't be discharged and the debt never goes away. Unpaid student loans will haunt you forever.
- pc86 7y ago
  Like I said. A lifetime of not paying your bills.
- deleted 7y ago
  [deleted]
- ac29 7y ago
  > student loans in the USA. They can't be discharged and the debt never goes away. Yeah, this is a common myth. Student loan payments in the US are limited to 10% of discretionary income for up to 20 years. If you make too little to pay off your loans on the standard 10 year plan you aren't just saddled with the debt forever. https://studentaid.ed.gov/sa/repay-loans/understand/plans/income-driven https://studentaid.ed.gov/sa/repay-loans/understand/plans/in...
  - dragonwriter 7y ago
    > Student loan payments in the US are limited to 10% of discretionary income for up to 20 years. No, they aren’t. You can choose an income contingent repayment plan that is limited that way, but it's not the default and servicers steer people beat served by those plans away from them in favor of staying on the standard plans and taking deferments.
  - journalctl 7y ago
    Yeah, federal loans. Private student loans are basically usury.

aripickar 7y ago

I'm saying that bankruptcy at 22 or however young is the much better option. You get it discharged before 30, and so it doesn't even impact the terms you get if you're trying to buy a house for a lot of people. If your options are bad credit for 7 years in your 20's, or 250k in debt, then everyone is going to choose the bad credit every time.

MiracleUser 7y ago
maybe that's how it should be. Then kids wont get approved for 250k loans due to the risk and colleges will have to either ask for more money upfront (good luck), expect less students (not good for funding), or lower tuition.
journalctl 7y ago
Bankruptcy is ten years now, for what it’s worth.