8 ms·

Millions of Americans Get Wages Garnished Over Credit Card Debt

39 points by user_235711 12y ago

jschwartzi 12y ago
The more I learn about what happens to people who are in debt and fall into hard times, the less I want to buy anything with credit.
- chiph 12y ago
  It's OK to use credit -- you just need to treat it with respect. Like a loaded gun.
- crusso 12y ago
  Which is how you should feel about it. Not approaching credit with a healthy amount of respect is a large part of the reason why it's such a general problem. Sure, in the article the first example they posted was of a person down on his luck - but that doesn't explain the epidemic of high credit card debt we've had even during boom periods. In general, I think that people just aren't good at living within their means. Having been on my own .com rollercoaster ride, I know what it's like to have to adjust your lifestyle drastically at times to avoid going into debt. It's difficult, but downsizing your house and selling your luxury car is a lot better than the alternative of living on the edge and losing everything when life throws your the inevitable curve ball.
- gretful 12y ago
  Credit is a trap for the unwary and those that fail to plan ahead. I include myself in that group, as I have credit debt. Don't do - save your money.
  - geebee 12y ago
    My brother asked me for advice, when he was in college, about whether he should get a credit card. I told him that he should, if he was confident that he make a small charge and consistently pay the bill, on time, every month. However, if he wasn't confident that he could do this, he shouldn't. He decided against the credit card. In retrospect, I didn't give him good advice. It's not that the overall approach is a bad one, but I didn't understand or emphasize just how important it is to establish a credit history. When you're in college, credit card companies will offer you a line of credit even if you have no previous credit history. If you can charge $10 a month, and pay it on time every month, for several years… I'm not kidding, banks will lend you $750,000 to buy a house at the most favorable rates 5 years later simply based on your demonstrated ability to pay $10 a month reliably and not run up a $10,000 debt just because you can. It's a test, and it's an important one to pass - but if you aren't going to pass, don't take it (yet). You will need to eventually. If you don't take this test and pass it, banks will at best charge you a higher interest rate that could actually cost you well over 100K over the lifetime of the loan. They might not loan to you at all. So yeah… if you can't handle credit, don't do it, but be aware of how important it is to establish a credit history.
    - gretful 12y ago
      yes, like fire, credit is useful servant but a terrible master. If you relax your attention it's easy to turn the relationship upside down.
  - zo1 12y ago
    Would you say the same about buying a large item (such as a home) on credit? They are fundamentally both debt, but drastically different in details.
  - allegory 12y ago
    Been there. I now have no debt after spending 14 years paying it off. 14 years lost.
    - zo1 12y ago
      "14 years lost." 14 years lost how? Do you not have the house/item that you spent 14 years paying off? Or was it credit-card debt?
      - allegory 12y ago
        Credit card, new car and catalogue debt. Everything purchased is gone or broken. I threw a lot of money into a mortgage and ended up in negative equity for 2 years as well. This is how I learned that status and material things are not important. Unfortunately my parents taught me the opposite to this and I paid with slavery for a long time. I realised that they too are slaves to their purchases and status. Shit happens! Everything I own is worth about £1000 now and I can afford to just replace it and go "meh".
- at-fates-hands 12y ago
  Well credit cards are a pretty recent development. The first general purpose card wasn't created until 1966. Sure, you can trace different forms of credit all the way back to the Crusades and the Knights Templar, but credit cards are a recent invention. If you think it about this way, the greatest generation never used credit. They saved until they had the money to buy stuff. My grandparents never had credit cards, and it wasn't until my parents were in their 40's and quite wealthy before they started using credit cards. If anything, you should use them only to maintain your credit rating. Keep a small balance (under $100) and use them to make small purchases. That way, you can reap the benefits to your credit score, without putting yourself in a huge hole.
  - gabzuka 12y ago
    And even the relevance of the credit score depends on where you are and what you're planning to do with it. Where I live you can get mortgages without a credit history as they value more that you can live within your means than having a history of going over it.
    - misaelm 12y ago
      Lenders do rely on a variety of factors when deciding who to lend money to but the credit score (as in FICO in the US) doesn't depend "on where you are and what you're planning to do with it".
      - gabzuka 12y ago
        Yes, of course, that was a typo from me. I meant to write "... the relevance of the credit score". Thanks for pointing it out.
  - Jtsummers 12y ago
    > If anything, you should use them only to maintain your credit rating. Keep a small balance (under $100) and use them to make small purchases. That way, you can reap the benefits to your credit score, without putting yourself in a huge hole. Don't leave the balance, pay it off every month. It doesn't benefit your credit score. From a Bank of America FAQ [0]: Fiction: You must carry a balance on your credit cards to build a credit history. Fact: You do need to use your credit cards to build a credit history, but that doesn't mean you must carry an unpaid balance. In fact, your best strategy is to use your credit cards and pay off the bill in full each month so you keep your overall debt-to-credit limit low. [0] https://www.bankofamerica.com/credit-cards/education/5-facts-about-credit-cards.go https://www.bankofamerica.com/credit-cards/education/5-facts...
- lazythrowaway 12y ago
  When I was in college, and my wife and I were in hard times, we had a $10,000 credit line that we ran up to full and I've been slowly paying down. I currently pay around $70 a month in interest on it - and it was so worth it. It's so cheap now that I don't even register it as an expense today, but the value of the money was 100x to me then when I was struggling so much.
- sillysaurus3 12y ago
  Important note: If you don't buy anything with credit, you could find yourself unable to sign up for internet service at a new apartment because you're an "unknown credit risk." This happened to me, and I would have been completely screwed if I hadn't had a roommate who did have credit. The ISP was the only service available at the apartment, and they absolutely refused to let me sign up. It wasn't because I had bad credit; I had never used credit. From my point of view, it was absolutely crazy. I tried everything in order to persuade them to let me open an account, such as offering to pay for several months of service in advance, but their policy prohibited anyone with "unknown credit risk" from creating a new account under any circumstances. All you have to do is get a credit card, buy all your groceries with it, then pay it off every month. Paying it off every month is the most important part. If you suddenly find yourself in a position where you have much less income, resist the temptation to use your credit card as a supplementary income.
  - deleted 12y ago
    [deleted]
- shmerl 12y ago
  Good point.
- JoshTriplett 12y ago
  Purchasing on credit is completely fine, as long as you actually have the money to do so. Assuming that you do, credit cards have some significant advantages over cash, notably receiving rewards for purchases that you'd make anyway, and tracking your purchases more easily. The incredibly dangerous thing is purchasing something you don't actually have the money for, and paying for it over time, with interest.
kenj0418 12y ago
- Option 1: Avoid getting into debt - Option 2: Pay your bills on time - Option 3: File Bankruptcy If you haven't taken option 1 or option 2 and you start getting court notices - then it's time to start talking to someone about option 3.
- bitJericho 12y ago
  Option 4: Don't fight the wage garnishment It's happened to me with an old student loan. I didn't fight it, they took some of my paycheck, the debt was gone in no time and everybody was happy.
- Zikes 12y ago
  You know how much it costs per hour to talk to someone about option 3? Even trying to prove how broke you are costs a lot of money.
  - reverend_gonzo 12y ago
    Bankruptcy attorneys generally charge a fixed rate, and there are pretty stringent laws about what they can and can't charge. Furthermore, the lawyer will do all further dealings with your creditors to get the amount owed cut down. If you're in the position where you can't pay your bills, you absolutely need to talk to an attorney.
- danielweber 12y ago
  Option 3 works unless it's a debt to the government, like student loans or tax debt.
EGreg 12y ago
Aren't there bankruptcy protections?
- jschwartzi 12y ago
  There are none for student loans. If you file bankruptcy they're the only kind of debt that you can't discharge.
  - liber8 12y ago
    This isn't true. 11 USC 523 contains a long list of non-dischargeable debts, including child/spousal support obligations, certain taxes, and debts incurred by fraud or willful injury.
  - jrs235 12y ago
    You can get student loans discharged. It's a misconception that many believe, even lawyers. It's just very, no, extremely, difficult to do so. ADD: From the horses mouth: "However, certain circumstances might lead to your loans being forgiven, canceled, or discharged." ( https://studentaid.ed.gov/repay-loans/forgiveness-cancellation https://studentaid.ed.gov/repay-loans/forgiveness-cancellati... )
    - jschwartzi 12y ago
      Huh. That contradicts what I remember from my exit counseling. Perhaps it's a useful misconception?
hughes 12y ago
It's hard to see these "millions of americans" as victims in this matter. It's almost always possible to just _not buy_ something if you can't afford it.
- lewispollard 12y ago
  In theory, yes - but there are entire armies of marketing and sales people who'll use every trick in the book to convince your fickle brain otherwise.
- Kalium 12y ago
  Just like millions of Americans conscientiously choose to not buy food and life-saving medical care each day! Life isn't always as simple as "don't buy more things".
  - zo1 12y ago
    Don't forget these two: "Save when you can, instead of spending". And "don't have kids you can't take care of, so they don't end up starving and unable to pay for 'life-saving medical care' when they're older."
    - Kalium 12y ago
      Don't forget to fully anticipate the future with perfect accuracy so you can be sure that you'll be certain of your ability to afford kids. Life is uncertain and variable. Demanding that people make choices based on unknowable futures is a bit silly.
      - zo1 12y ago
        "Life is uncertain and variable. Demanding that people make choices based on unknowable futures is a bit silly." And what about demanding that other people pick up your burden if the unknowable future impacts you negatively? It works both ways, you know. You are 100% correct, life is uncertain and variable. And there is no way for anyone to fully anticipate the future with perfect accuracy. However, that right there is the most powerful reason that should be compelling individuals to be more careful and risk-averse. Especially when it comes to family, kids and health.
kolev 12y ago
Reading the responses here, I think you guys are completely disconnected from the reality, because you (like me) are lucky to have a high-paid high-in-demand profession! There are people in America who go to bed hungry - and not because they overspend or manage finances poorly. Just go over at http://www.feedingamerica.org/ http://www.feedingamerica.org/ as starters!
- zo1 12y ago
  "overspend or manage finances poorly" The sort of debt that you're talking about goes way further than the narrow perspective that most take on it. It begins before you are even born, and I think we should all ruminate on that. Let me elaborate a bit, despite consistently getting down mods for expressing this point of view before. The debt begins with the parents that choose to have kids when they are unsure of their financial wellness and security for the years to come of their child's growth to adulthood. i.e. People shouldn't be having kids unless they're damn sure they can take care of them till they're adults and able to take care of themselves.
  - smtddr 12y ago
    >>The debt begins with the parents that choose to have kids when they are unsure of their financial wellness and security for the years to come of their child's growth to adulthood. Having children should not be tied to having X amount of money - https://news.ycombinator.com/item?id=8177836 https://news.ycombinator.com/item?id=8177836
    - zo1 12y ago
      I'm not saying that you should have X amount of money in order to have kids. The statement is "you should have enough money to enable you to take care of your kids into adulthood, because doing so otherwise is negligent". It's not a matter of money, but about lack of negligence and burden.
      - smtddr 12y ago
        >>you should have enough money to enable you to take care of your kids into adulthood, because doing so otherwise is negligent I would phrase this as "Society should be structured such that money isn't a concern because there is a safety net for everyone to be caught in aside from the extreme cases like say that "octo-mom"[1] situation. 1. http://en.wikipedia.org/wiki/Nadya_Suleman http://en.wikipedia.org/wiki/Nadya_Suleman
joshuaheard 12y ago
People don't wake up one day and find their wages garnished. They must have a lawsuit filed against them, be served with a summons, get a judgment against them, and finally have their wages garnished. And the money that is being garnished is to pay back the creditor for the money and/or services that the debtor received. It's called justice.
- shmerl 12y ago
  Charging constant percentage on the debt is not called justice. It's a rip off.
  - zo1 12y ago
    They agreed to it when they signed up for the debt. I don't get it, just because someone (corporation/rich person) has lots of money, doesn't mean that not giving them back what they gave you is okay. Not giving them back money that you took is the rip off. Is it nice? Could they be a little more compassionate to peoples' situations? Sure, of course. That's why you have institutions that help people with debt-counseling. On the other hand, why not do what they did here. Make laws that prohibit over-burdening debt from being given to an individual.
    - shmerl 12y ago
      "Agreed" because they had no choice. Profiting from other's debt is simply crooked, but became acceptable in society.
      - zo1 12y ago
        I'm not sure I understand what you're saying. What is your argument, exactly?
        shmerl 12y ago
        You said that profiting from debt is alright since parties have agreed to it. I'm saying that it's not, and such agreement comes from limiting circumstances, not because it's a good practice.
cryoshon 12y ago
"One in 10 working Americans between the ages of 35 and 44 are getting their wages garnished. That means their pay is being docked — often over an old credit card debt, medical bill or student loan." Think about how severe of a situation this stat depicts. News like this really destroys the "economic recovery" propaganda that the MSM trumpets. People have no cash in hand. The income they do have is being ripped from them rapidly via debts of various kinds. The result is society-scale movement towards poverty.
deleted 12y ago
[deleted]
danielweber 12y ago
Mods, please fix the title to match the article. Millions are having wages garnished over "credit card debt, medical debt, and student loans." No breakdown is given among categories. This is a serious enough issue without misleading headlines.
zo1 12y ago
Do you not have something like this in America: http://www.liberty.co.za/our-products/protecting-your-income/personal-income-protection/Pages/personal-income-protection.aspx http://www.liberty.co.za/our-products/protecting-your-income... It's pretty much a sort of "insurance" that then pays out your salary for X amount of time if you become unable to work for whatever reason. There are many different types/kinds of this type of thing here...

39 points by user_235711 12y ago

The more I learn about what happens to people who are in debt and fall into hard times, the less I want to buy anything with credit.

chiph 12y ago
It's OK to use credit -- you just need to treat it with respect. Like a loaded gun.
crusso 12y ago
Which is how you should feel about it. Not approaching credit with a healthy amount of respect is a large part of the reason why it's such a general problem. Sure, in the article the first example they posted was of a person down on his luck - but that doesn't explain the epidemic of high credit card debt we've had even during boom periods. In general, I think that people just aren't good at living within their means. Having been on my own .com rollercoaster ride, I know what it's like to have to adjust your lifestyle drastically at times to avoid going into debt. It's difficult, but downsizing your house and selling your luxury car is a lot better than the alternative of living on the edge and losing everything when life throws your the inevitable curve ball.
gretful 12y ago
Credit is a trap for the unwary and those that fail to plan ahead. I include myself in that group, as I have credit debt. Don't do - save your money.
- geebee 12y ago
  My brother asked me for advice, when he was in college, about whether he should get a credit card. I told him that he should, if he was confident that he make a small charge and consistently pay the bill, on time, every month. However, if he wasn't confident that he could do this, he shouldn't. He decided against the credit card. In retrospect, I didn't give him good advice. It's not that the overall approach is a bad one, but I didn't understand or emphasize just how important it is to establish a credit history. When you're in college, credit card companies will offer you a line of credit even if you have no previous credit history. If you can charge $10 a month, and pay it on time every month, for several years… I'm not kidding, banks will lend you $750,000 to buy a house at the most favorable rates 5 years later simply based on your demonstrated ability to pay $10 a month reliably and not run up a $10,000 debt just because you can. It's a test, and it's an important one to pass - but if you aren't going to pass, don't take it (yet). You will need to eventually. If you don't take this test and pass it, banks will at best charge you a higher interest rate that could actually cost you well over 100K over the lifetime of the loan. They might not loan to you at all. So yeah… if you can't handle credit, don't do it, but be aware of how important it is to establish a credit history.
  - gretful 12y ago
    yes, like fire, credit is useful servant but a terrible master. If you relax your attention it's easy to turn the relationship upside down.
- zo1 12y ago
  Would you say the same about buying a large item (such as a home) on credit? They are fundamentally both debt, but drastically different in details.
- allegory 12y ago
  Been there. I now have no debt after spending 14 years paying it off. 14 years lost.
  - zo1 12y ago
    "14 years lost." 14 years lost how? Do you not have the house/item that you spent 14 years paying off? Or was it credit-card debt?
    - allegory 12y ago
      Credit card, new car and catalogue debt. Everything purchased is gone or broken. I threw a lot of money into a mortgage and ended up in negative equity for 2 years as well. This is how I learned that status and material things are not important. Unfortunately my parents taught me the opposite to this and I paid with slavery for a long time. I realised that they too are slaves to their purchases and status. Shit happens! Everything I own is worth about £1000 now and I can afford to just replace it and go "meh".
at-fates-hands 12y ago
Well credit cards are a pretty recent development. The first general purpose card wasn't created until 1966. Sure, you can trace different forms of credit all the way back to the Crusades and the Knights Templar, but credit cards are a recent invention. If you think it about this way, the greatest generation never used credit. They saved until they had the money to buy stuff. My grandparents never had credit cards, and it wasn't until my parents were in their 40's and quite wealthy before they started using credit cards. If anything, you should use them only to maintain your credit rating. Keep a small balance (under $100) and use them to make small purchases. That way, you can reap the benefits to your credit score, without putting yourself in a huge hole.
- gabzuka 12y ago
  And even the relevance of the credit score depends on where you are and what you're planning to do with it. Where I live you can get mortgages without a credit history as they value more that you can live within your means than having a history of going over it.
  - misaelm 12y ago
    Lenders do rely on a variety of factors when deciding who to lend money to but the credit score (as in FICO in the US) doesn't depend "on where you are and what you're planning to do with it".
    - gabzuka 12y ago
      Yes, of course, that was a typo from me. I meant to write "... the relevance of the credit score". Thanks for pointing it out.
- Jtsummers 12y ago
  > If anything, you should use them only to maintain your credit rating. Keep a small balance (under $100) and use them to make small purchases. That way, you can reap the benefits to your credit score, without putting yourself in a huge hole. Don't leave the balance, pay it off every month. It doesn't benefit your credit score. From a Bank of America FAQ [0]: Fiction: You must carry a balance on your credit cards to build a credit history. Fact: You do need to use your credit cards to build a credit history, but that doesn't mean you must carry an unpaid balance. In fact, your best strategy is to use your credit cards and pay off the bill in full each month so you keep your overall debt-to-credit limit low. [0] https://www.bankofamerica.com/credit-cards/education/5-facts-about-credit-cards.go https://www.bankofamerica.com/credit-cards/education/5-facts...
lazythrowaway 12y ago
When I was in college, and my wife and I were in hard times, we had a $10,000 credit line that we ran up to full and I've been slowly paying down. I currently pay around $70 a month in interest on it - and it was so worth it. It's so cheap now that I don't even register it as an expense today, but the value of the money was 100x to me then when I was struggling so much.
sillysaurus3 12y ago
Important note: If you don't buy anything with credit, you could find yourself unable to sign up for internet service at a new apartment because you're an "unknown credit risk." This happened to me, and I would have been completely screwed if I hadn't had a roommate who did have credit. The ISP was the only service available at the apartment, and they absolutely refused to let me sign up. It wasn't because I had bad credit; I had never used credit. From my point of view, it was absolutely crazy. I tried everything in order to persuade them to let me open an account, such as offering to pay for several months of service in advance, but their policy prohibited anyone with "unknown credit risk" from creating a new account under any circumstances. All you have to do is get a credit card, buy all your groceries with it, then pay it off every month. Paying it off every month is the most important part. If you suddenly find yourself in a position where you have much less income, resist the temptation to use your credit card as a supplementary income.
- deleted 12y ago
  [deleted]
shmerl 12y ago
Good point.
JoshTriplett 12y ago
Purchasing on credit is completely fine, as long as you actually have the money to do so. Assuming that you do, credit cards have some significant advantages over cash, notably receiving rewards for purchases that you'd make anyway, and tracking your purchases more easily. The incredibly dangerous thing is purchasing something you don't actually have the money for, and paying for it over time, with interest.

kenj0418 12y ago

- Option 1: Avoid getting into debt - Option 2: Pay your bills on time - Option 3: File Bankruptcy If you haven't taken option 1 or option 2 and you start getting court notices - then it's time to start talking to someone about option 3.

bitJericho 12y ago
Option 4: Don't fight the wage garnishment It's happened to me with an old student loan. I didn't fight it, they took some of my paycheck, the debt was gone in no time and everybody was happy.
Zikes 12y ago
You know how much it costs per hour to talk to someone about option 3? Even trying to prove how broke you are costs a lot of money.
- reverend_gonzo 12y ago
  Bankruptcy attorneys generally charge a fixed rate, and there are pretty stringent laws about what they can and can't charge. Furthermore, the lawyer will do all further dealings with your creditors to get the amount owed cut down. If you're in the position where you can't pay your bills, you absolutely need to talk to an attorney.
danielweber 12y ago
Option 3 works unless it's a debt to the government, like student loans or tax debt.

EGreg 12y ago

Aren't there bankruptcy protections?

jschwartzi 12y ago
There are none for student loans. If you file bankruptcy they're the only kind of debt that you can't discharge.
- liber8 12y ago
  This isn't true. 11 USC 523 contains a long list of non-dischargeable debts, including child/spousal support obligations, certain taxes, and debts incurred by fraud or willful injury.
- jrs235 12y ago
  You can get student loans discharged. It's a misconception that many believe, even lawyers. It's just very, no, extremely, difficult to do so. ADD: From the horses mouth: "However, certain circumstances might lead to your loans being forgiven, canceled, or discharged." ( https://studentaid.ed.gov/repay-loans/forgiveness-cancellation https://studentaid.ed.gov/repay-loans/forgiveness-cancellati... )
  - jschwartzi 12y ago
    Huh. That contradicts what I remember from my exit counseling. Perhaps it's a useful misconception?

hughes 12y ago

It's hard to see these "millions of americans" as victims in this matter. It's almost always possible to just _not buy_ something if you can't afford it.

lewispollard 12y ago
In theory, yes - but there are entire armies of marketing and sales people who'll use every trick in the book to convince your fickle brain otherwise.
Kalium 12y ago
Just like millions of Americans conscientiously choose to not buy food and life-saving medical care each day! Life isn't always as simple as "don't buy more things".
- zo1 12y ago
  Don't forget these two: "Save when you can, instead of spending". And "don't have kids you can't take care of, so they don't end up starving and unable to pay for 'life-saving medical care' when they're older."
  - Kalium 12y ago
    Don't forget to fully anticipate the future with perfect accuracy so you can be sure that you'll be certain of your ability to afford kids. Life is uncertain and variable. Demanding that people make choices based on unknowable futures is a bit silly.
    - zo1 12y ago
      "Life is uncertain and variable. Demanding that people make choices based on unknowable futures is a bit silly." And what about demanding that other people pick up your burden if the unknowable future impacts you negatively? It works both ways, you know. You are 100% correct, life is uncertain and variable. And there is no way for anyone to fully anticipate the future with perfect accuracy. However, that right there is the most powerful reason that should be compelling individuals to be more careful and risk-averse. Especially when it comes to family, kids and health.

kolev 12y ago

Reading the responses here, I think you guys are completely disconnected from the reality, because you (like me) are lucky to have a high-paid high-in-demand profession! There are people in America who go to bed hungry - and not because they overspend or manage finances poorly. Just go over at http://www.feedingamerica.org/ http://www.feedingamerica.org/ as starters!

zo1 12y ago
"overspend or manage finances poorly" The sort of debt that you're talking about goes way further than the narrow perspective that most take on it. It begins before you are even born, and I think we should all ruminate on that. Let me elaborate a bit, despite consistently getting down mods for expressing this point of view before. The debt begins with the parents that choose to have kids when they are unsure of their financial wellness and security for the years to come of their child's growth to adulthood. i.e. People shouldn't be having kids unless they're damn sure they can take care of them till they're adults and able to take care of themselves.
- smtddr 12y ago
  >>The debt begins with the parents that choose to have kids when they are unsure of their financial wellness and security for the years to come of their child's growth to adulthood. Having children should not be tied to having X amount of money - https://news.ycombinator.com/item?id=8177836 https://news.ycombinator.com/item?id=8177836
  - zo1 12y ago
    I'm not saying that you should have X amount of money in order to have kids. The statement is "you should have enough money to enable you to take care of your kids into adulthood, because doing so otherwise is negligent". It's not a matter of money, but about lack of negligence and burden.
    - smtddr 12y ago
      >>you should have enough money to enable you to take care of your kids into adulthood, because doing so otherwise is negligent I would phrase this as "Society should be structured such that money isn't a concern because there is a safety net for everyone to be caught in aside from the extreme cases like say that "octo-mom"[1] situation. 1. http://en.wikipedia.org/wiki/Nadya_Suleman http://en.wikipedia.org/wiki/Nadya_Suleman

joshuaheard 12y ago

People don't wake up one day and find their wages garnished. They must have a lawsuit filed against them, be served with a summons, get a judgment against them, and finally have their wages garnished. And the money that is being garnished is to pay back the creditor for the money and/or services that the debtor received. It's called justice.

shmerl 12y ago
Charging constant percentage on the debt is not called justice. It's a rip off.
- zo1 12y ago
  They agreed to it when they signed up for the debt. I don't get it, just because someone (corporation/rich person) has lots of money, doesn't mean that not giving them back what they gave you is okay. Not giving them back money that you took is the rip off. Is it nice? Could they be a little more compassionate to peoples' situations? Sure, of course. That's why you have institutions that help people with debt-counseling. On the other hand, why not do what they did here. Make laws that prohibit over-burdening debt from being given to an individual.
  - shmerl 12y ago
    "Agreed" because they had no choice. Profiting from other's debt is simply crooked, but became acceptable in society.
    - zo1 12y ago
      I'm not sure I understand what you're saying. What is your argument, exactly?
      - shmerl 12y ago
        You said that profiting from debt is alright since parties have agreed to it. I'm saying that it's not, and such agreement comes from limiting circumstances, not because it's a good practice.

cryoshon 12y ago

"One in 10 working Americans between the ages of 35 and 44 are getting their wages garnished. That means their pay is being docked — often over an old credit card debt, medical bill or student loan." Think about how severe of a situation this stat depicts. News like this really destroys the "economic recovery" propaganda that the MSM trumpets. People have no cash in hand. The income they do have is being ripped from them rapidly via debts of various kinds. The result is society-scale movement towards poverty.

deleted 12y ago

[deleted]

danielweber 12y ago

Mods, please fix the title to match the article. Millions are having wages garnished over "credit card debt, medical debt, and student loans." No breakdown is given among categories. This is a serious enough issue without misleading headlines.

zo1 12y ago

Do you not have something like this in America: http://www.liberty.co.za/our-products/protecting-your-income/personal-income-protection/Pages/personal-income-protection.aspx http://www.liberty.co.za/our-products/protecting-your-income... It's pretty much a sort of "insurance" that then pays out your salary for X amount of time if you become unable to work for whatever reason. There are many different types/kinds of this type of thing here...