What if their probability of defaulting on the debt is higher than 15% a year? Should they not be permitted to borrow money at all?https://twitter.com/AOC/status/1126499462107607040 …
-
These are predatory loans plain and simple. No, they should not be permitted to borrow the money, nor should the banks be permitted to make the loans.
So, if someone needs to borrow money to avoid catastrophe (repossession, foreclosure, medical bills, etc), the government should not permit them to do so at a fair interest rate that accurately reflects their probably of default? You'd rather they lose their car, house, or life?
-
-
Complex question, right? If they are desperate & have no money—> how does a 25% loan help? They won't/can't repay. Loan defaults & bank recovers money via write-off, taxes, sells the debt etc. Financial literacy in US is horrible, but system also is skewed towards banks.
-
Sometimes you have a steady income but need $500 three days before you get paid, and don't have an extra $500 laying around. It happens.
End of conversation
New conversation -
-
-
exactly!
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
Are you proposing that in what people perceive to be a most desperate hour, they be given the option to take out a high interest loan? Humans fail in this hour notoriously. The banks will get their money, it's just a matter of when and by what means.
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
-
-
You could certainly reduce the # if such emergencies, but they occurr in places with much more generous welfare systems too.
End of conversation
New conversation -
-
-
They probably should not borrow the money, because of better judgment not a law against it. Government might be given mandate to assist desperate cases in some other way.
Thanks. Twitter will use this to make your timeline better. UndoUndo
-
Loading seems to be taking a while.
Twitter may be over capacity or experiencing a momentary hiccup. Try again or visit Twitter Status for more information.