This strikes me as a very dumb question. For all the answers to this, simply look at the credit card industry and consumer motivation to spend money they do not

This strikes me as a very dumb question. For all the answers to this, simply look at the credit card industry and consumer motivation to spend money they do not have. People want stuff they cannot afford, so they spend money they do not have, it costs them dearly. That's how the system works; not that I advocate it. It takes considerable effort to get out of the cycle, especially for people in consumerist USA. The way I look at it is: If they ask me for my social security number, then I am getting a loan, and so I do not go through with the transaction. For my prepaid phone I spent $250 for the phone, and I pay $19 monthly. No SSN required. For a phone plan, I would spend $0 (or whatever for a higher-end phone), sign a contract, provide my SSN, and pay monthly over at least 2 years.