3 ms·

If that was an actual problem wouldn't people be doing it without the college already? When I was in my early 20s I got non-stop credit offers and I could have

If that was an actual problem wouldn't people be doing it without the college already? When I was in my early 20s I got non-stop credit offers and I could have easily pulled out tens of thousands in crappy debt.

reddozen 3mo ago
Ok. And the interest on unsecured debts like credit cards are like 25%. Sounds like the risk is properly priced in. What's your point?
- AnthonyMouse 3mo ago
  On top of that, the amount of unsecured credit you can get with no/bad credit history is more like $500 than $250,000.
- AngryData 3mo ago
  Why does the interest matter much if you are going to declare bankruptcy anyways?
  - reddozen 3mo ago
    This has to just be an IQ gap or something. Is it actually impossible for you to view agreements from different perspectives? From the individuals' perspective, overusing uncollateralized debt to be discharged is a good deal. That loss is offset by the creditor by issuing higher interest to unsecured credit lines because people can default on their debts. From the creditor's perspective, it's risk adjusted for people who default. It just logically follows. I can't help you understand past this.
throw2ih020 3mo ago
> If that was an actual problem wouldn't people be doing it without the college already? I see you haven't heard of /r/churning. Although it doesn't involve bankruptcy, because then the sheriff comes down and takes your property from you...
- ashdksnndck 3mo ago
  Churning is not about taking out debt and not paying it off. It’s about signing up for credit cards and spending money to earn rewards points, and paying off the balance soon to avoid owing interest.
Aurornis 3mo ago
And what is the interest rate on those credit card offers? Is it the low single digits of a student loan which is not easily dischargeable? Or is it 18-30% like you’d expect from a loan where the recipient can discharge it more easily? This proves the point.
- AngryData 3mo ago
  Why would it matter if I just declared bankruptcy?
  - arealaccount 3mo ago
    I think they’re saying people do do it, which is why the rates are high

reddozen 3mo ago

Ok. And the interest on unsecured debts like credit cards are like 25%. Sounds like the risk is properly priced in. What's your point?

AnthonyMouse 3mo ago
On top of that, the amount of unsecured credit you can get with no/bad credit history is more like $500 than $250,000.
AngryData 3mo ago
Why does the interest matter much if you are going to declare bankruptcy anyways?
- reddozen 3mo ago
  This has to just be an IQ gap or something. Is it actually impossible for you to view agreements from different perspectives? From the individuals' perspective, overusing uncollateralized debt to be discharged is a good deal. That loss is offset by the creditor by issuing higher interest to unsecured credit lines because people can default on their debts. From the creditor's perspective, it's risk adjusted for people who default. It just logically follows. I can't help you understand past this.

throw2ih020 3mo ago

> If that was an actual problem wouldn't people be doing it without the college already? I see you haven't heard of /r/churning. Although it doesn't involve bankruptcy, because then the sheriff comes down and takes your property from you...

ashdksnndck 3mo ago
Churning is not about taking out debt and not paying it off. It’s about signing up for credit cards and spending money to earn rewards points, and paying off the balance soon to avoid owing interest.

Aurornis 3mo ago

And what is the interest rate on those credit card offers? Is it the low single digits of a student loan which is not easily dischargeable? Or is it 18-30% like you’d expect from a loan where the recipient can discharge it more easily? This proves the point.

AngryData 3mo ago
Why would it matter if I just declared bankruptcy?
- arealaccount 3mo ago
  I think they’re saying people do do it, which is why the rates are high