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by reddozen 17 days 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?
2 comments
AnthonyMouse 17 days 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.
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AngryData 16 days ago
Why does the interest matter much if you are going to declare bankruptcy anyways?
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reddozen 16 days 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.

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