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I'm not seeing it, and nor would anyone else who relies on good credit ... So, anyone who disagrees with you fails to see the value of good credit? The proble

by _pius 13y ago

I'm not seeing it, and nor would anyone else who relies on good credit ... So, anyone who disagrees with you fails to see the value of good credit? The problem with your argument is that we're talking about people who've already harmed their own credit, probably for reasons out of their control. It turns out that people screw up their credit for all sorts of reasons, even though they presumably understand that it's harmful.

Zigurd 13y ago
That reasoning is circular: If they are already in default, the debt is being sold at a discount, so if the debtor buys it at market value, there is no perverse incentive, and the debt holder gets market value. Incentive is only perverse if it would induce an otherwise non-defaulting debtor to default to get his debt to be sold at a discount.