[gtremper]

Considering their default rate is surely higher that 0.75% (1.5/200), how is that sustainable?

[sev]

Couldn't a rate in between these 2 extremes work? Like a 70% APR?

[gtremper]

That's breaking even at a ~5.83% default rate, which is still unrealistically low. If they have a default rate of 20%, they'd need at least 240% APR to break even (assuming 1 month loans).

[zaroth]

That's 20% monthly default, but better to think about an annualized default rate, which at 20% would be much more manageable, right?

[Kinnard]

The default rate would be lower with a lower interest rate. #secondordereffects

[zo1]

Someone has more trouble paying off $228 instead of $200?

Granted, it could be right at an invisible tipping point, but let's be honest.

[ceejayoz]

> Someone has more trouble paying off $228 instead of $200?

Yes? That's like a month's food for some folks.

[FireBeyond]

$28 is a month's food?