4 ms·
Two hypothesis: 1) The nature of interest in unsecured loans is high interest (almost by definition) and increasingly so if you are seen as a credit risk. Thus
by dijit 1y ago
Two hypothesis:
1) The nature of interest in unsecured loans is high interest (almost by definition) and increasingly so if you are seen as a credit risk. Thus small debts compound over time making them unbearable for longer.
2) Our friend is merely Keeping up with the Jones’ despite never going above a zero balance.
One of these is uncharitable and ridiculous- the other is a known issue that keeps people in poverty.
I’ll let you figure out which.
- tasuki 1y agoI guess I wasn't being clear: I wasn't talking about the person from this thread! You said: > Most people are about 2 bad decisions from poverty. My reaction was to this. I agreed with you, and added the cause: utter financial recklessness. People spending money on things they don't need instead of saving say a quarter of their salary. For some time I was earning a couple times the average salary in my region of the world. Yet I found that spending about the average salary was more than enough to live a very comfortable life. I feel this is not the norm for whatever reason: most people inflate spending to match their income, and then they're 2 bad decisions (or even some bad luck) from poverty.