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While not a slave, for many bankruptcy will ruin any chance of the ownership of assets for 7-10 years. While not slavery, bankruptcy will put you into the peas

While not a slave, for many bankruptcy will ruin any chance of the ownership of assets for 7-10 years. While not slavery, bankruptcy will put you into the peasant category. Tobacco advertising is essentially banned, since it has long term affects. Credit should be no different. If used wisely it can be a good thing, but at the same time it’s marketed to the easiest and most vulnerable. Credit advertising itself should be banned with tax incentives given to companies that require everyone to go through a financial course. In my personal opinion a free financial course should be required before you first get your SSN and then no higher than a $500 credit limit for 6 months after.

PragmaticPulp 5y ago
> While not a slave, for many bankruptcy will ruin any chance of the ownership of assets for 7-10 years. People declaring bankruptcy aren't in a position to have good credit scores or acquire more assets anyway. If you can't service your debts, you're not going to be securing more loans and buying more assets. Bankruptcy is a chance to reset the debt to $0 and start over. The bankruptcy even drops off your credit score entirely after several years, making it a complete reset. Bankruptcy is better in every way than forcing people to service those debts forever.
- ajross 5y ago
  > People declaring bankruptcy aren't in a position to have good credit scores or acquire more assets anyway. That's... kinda ridiculous. My twitter feed[1] is absolutely filled with flush 20-somethings who clearly aren't seven years into their careers showing off their NFTs and cars and condos and whatnot. People right out of college with zero assets are getting loans. People right out of bankruptcy can't. So it's not the same. [1] Seeded, it seems, from my following of a few Tesla-related accounts. There's... a somewhat distressing level of overlap.
- cyberlurker 5y ago
  I have no debt, but I hold this opinion: Student loan debt should be able to be discharged in bankruptcy. If an institution gives someone a $200k education and that person can’t pay the debt back with their career, it was overpriced and should have never been give a loan. I’ve seen people flee the country and live in Australia or Germany so as just to escape their student loans. Bad on them for making the poor financial choice but good for them sticking it to the industry that gives out these loans.
  - sokoloff 5y ago
    If you make student loans easier to discharge, you make them harder to get. That might be part of your plan, but it does make it harder for the less wealthy to afford college, so there's a trade-off here, not a straight victory.
    - landemva 5y ago
      After a year or two, college costs would drop dramatically. The breadth of degree programs, some of which lead to careers serving coffee, would also shrink.
      - sokoloff 5y ago
        Harvard and Stanford admit about 1 in 20 applicants. MIT around 1 in 15. I doubt you’d see those schools get cheaper as the demand far exceeds the supply. I think you would see a lot more legacy admissions and an overall wealthier student body in the top-tier colleges if poor people couldn’t easily borrow to attend. (As one of those people 35 years ago, I think that’s a way worse outcome than today.) State schools and schools with high admission percentages might get cheaper in tuition, but it’s still going to be expensive to live and eat for 4 years with no income coming in for most of the year.
        landemva 5y ago
        High school students apply to many colleges, and each student rarely goes on to attend multiple colleges concurrently. That ratio about applications is misleading, and is generally understood to be intended to be social signaling of exclusivity. Why would a student not want to work part time to have a little income? I found it beneficial.
        kortilla 5y ago
        If people had to pay $200k to attend Harvard, the price will absolutely collapse. 1 in 20 applicants is only the top 5%. Being in the top 5% income earners in the country is not a high enough bar to shell out $50k a year extra post tax to pay a child’s tuition.
wombatpm 5y ago
>In my personal opinion a free financial course should be required before you first get your SSN and then no higher than a $500 credit limit for 6 months after. While I appreciate the sentiment, SSN is required for anyone to be claimed as a dependent. My Children had theirs issued shortly after birth. I rather see something alonog a required class before you can open your first credit card. I got mine in college and had a $25k credit limit by the time I graduated. It was very easy for classmates of mine to get into serious debt.
pishpash 5y ago
You always have human capital. Always. (Unless you're in a coma or some such.)
nobody9999 5y ago
>In my personal opinion a free financial course should be required before you first get your SSN and then no higher than a $500 credit limit for 6 months after. And when you have a lawsuit filed against you in a comparative negligence[0] jurisdiction, even if you have no debt at all, bankruptcy may be your only choice -- when the lawyer's fees will bankrupt you even if you win the lawsuit (let alone having to pay even a small percentage of a seven or eight-figure judgement). What financial advice (free or otherwise) can you give to someone in that situation? I was in that situation and faced either bankruptcy after trial (even if I won) or bankruptcy before trial and still lose access to favorable credit terms. Bankruptcy guaranteed. With no bad financial decisions or lack of financial education needed. If your scenario (ignorant people making bad financial decision) were the only issue, I might agree with you. But there are a whole bunch of other scenarios that don't include bad decisions. All you need is someone to sue you for some large amount of money (even if there's no merit to the suit, the lawyer's fees for going to trial will do the job) or incur large medical bills for injuries/illnesses that have nothing to do with poor choices. [0] https://www.law.cornell.edu/wex/comparative_negligence https://www.law.cornell.edu/wex/comparative_negligence Edit: Added the missing link.

PragmaticPulp 5y ago

> While not a slave, for many bankruptcy will ruin any chance of the ownership of assets for 7-10 years. People declaring bankruptcy aren't in a position to have good credit scores or acquire more assets anyway. If you can't service your debts, you're not going to be securing more loans and buying more assets. Bankruptcy is a chance to reset the debt to $0 and start over. The bankruptcy even drops off your credit score entirely after several years, making it a complete reset. Bankruptcy is better in every way than forcing people to service those debts forever.

ajross 5y ago
> People declaring bankruptcy aren't in a position to have good credit scores or acquire more assets anyway. That's... kinda ridiculous. My twitter feed[1] is absolutely filled with flush 20-somethings who clearly aren't seven years into their careers showing off their NFTs and cars and condos and whatnot. People right out of college with zero assets are getting loans. People right out of bankruptcy can't. So it's not the same. [1] Seeded, it seems, from my following of a few Tesla-related accounts. There's... a somewhat distressing level of overlap.
cyberlurker 5y ago
I have no debt, but I hold this opinion: Student loan debt should be able to be discharged in bankruptcy. If an institution gives someone a $200k education and that person can’t pay the debt back with their career, it was overpriced and should have never been give a loan. I’ve seen people flee the country and live in Australia or Germany so as just to escape their student loans. Bad on them for making the poor financial choice but good for them sticking it to the industry that gives out these loans.
- sokoloff 5y ago
  If you make student loans easier to discharge, you make them harder to get. That might be part of your plan, but it does make it harder for the less wealthy to afford college, so there's a trade-off here, not a straight victory.
  - landemva 5y ago
    After a year or two, college costs would drop dramatically. The breadth of degree programs, some of which lead to careers serving coffee, would also shrink.
    - sokoloff 5y ago
      Harvard and Stanford admit about 1 in 20 applicants. MIT around 1 in 15. I doubt you’d see those schools get cheaper as the demand far exceeds the supply. I think you would see a lot more legacy admissions and an overall wealthier student body in the top-tier colleges if poor people couldn’t easily borrow to attend. (As one of those people 35 years ago, I think that’s a way worse outcome than today.) State schools and schools with high admission percentages might get cheaper in tuition, but it’s still going to be expensive to live and eat for 4 years with no income coming in for most of the year.
      - landemva 5y ago
        High school students apply to many colleges, and each student rarely goes on to attend multiple colleges concurrently. That ratio about applications is misleading, and is generally understood to be intended to be social signaling of exclusivity. Why would a student not want to work part time to have a little income? I found it beneficial.
      - kortilla 5y ago
        If people had to pay $200k to attend Harvard, the price will absolutely collapse. 1 in 20 applicants is only the top 5%. Being in the top 5% income earners in the country is not a high enough bar to shell out $50k a year extra post tax to pay a child’s tuition.

wombatpm 5y ago

>In my personal opinion a free financial course should be required before you first get your SSN and then no higher than a $500 credit limit for 6 months after. While I appreciate the sentiment, SSN is required for anyone to be claimed as a dependent. My Children had theirs issued shortly after birth. I rather see something alonog a required class before you can open your first credit card. I got mine in college and had a $25k credit limit by the time I graduated. It was very easy for classmates of mine to get into serious debt.

pishpash 5y ago

You always have human capital. Always. (Unless you're in a coma or some such.)

nobody9999 5y ago

>In my personal opinion a free financial course should be required before you first get your SSN and then no higher than a $500 credit limit for 6 months after. And when you have a lawsuit filed against you in a comparative negligence[0] jurisdiction, even if you have no debt at all, bankruptcy may be your only choice -- when the lawyer's fees will bankrupt you even if you win the lawsuit (let alone having to pay even a small percentage of a seven or eight-figure judgement). What financial advice (free or otherwise) can you give to someone in that situation? I was in that situation and faced either bankruptcy after trial (even if I won) or bankruptcy before trial and still lose access to favorable credit terms. Bankruptcy guaranteed. With no bad financial decisions or lack of financial education needed. If your scenario (ignorant people making bad financial decision) were the only issue, I might agree with you. But there are a whole bunch of other scenarios that don't include bad decisions. All you need is someone to sue you for some large amount of money (even if there's no merit to the suit, the lawyer's fees for going to trial will do the job) or incur large medical bills for injuries/illnesses that have nothing to do with poor choices. [0] https://www.law.cornell.edu/wex/comparative_negligence https://www.law.cornell.edu/wex/comparative_negligence Edit: Added the missing link.