4 ms·
True, nothing wrong with this, but a repercussion would be increasing interest rates, which would undoubtedly drive some debtors to default on their loans.
by washedup 14y ago
True, nothing wrong with this, but a repercussion would be increasing interest rates, which would undoubtedly drive some debtors to default on their loans.
- scrumper 14y agoHow so? Making the creditor's loan pool more profitable (by increasing the resale price of defaulted debt) reduces their overall risk, which leads to either more loans being made or a reduction in rates.