bad credit should stay until the person pays back? current rule rewards the bad debtors?
Current financial rule erases bankruptices & bad/negative credits in 7 years or so & the person can start over with clean credit. In my opinion the person should keep his/her bad credit forever until he/she pays back. Why are we rewarding the irresponsibles by clearing their credit?
I agree. I might make an exception for rare people who are ruined for reasons beyond their control, but for the most part consumers dig their own holes and shouldn’t be forgiven debts that responsible people either pay off in time or don’t accumulate in the first place.
People know what they make and what they can afford. They just choose to overlook it when they want something new.
Health insurance is so cheap in the US that there is no reason not to have any. Job loss is a risk to everyone, and so the grown-up thing to do is not to use credit to supplement one’s income. If you lose your job, get another one, even at a fraction of your original salary, rather than sit around for a year waiting to be offered more money.
March, 25th 2010 at 2:49 am
Businesses also get their debt erased sometimes. Look at this bailout.
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March, 25th 2010 at 3:05 am
I didn’t see a halo! Haven’t YOU ever been late on a payment? WOW! if you haven’t, what are you still doing on earth!?? There are cases, such as terrible illnesses, accidents, no fault of the victim, might not have the most perfect medical insurance, and the bills put you under – you are saying EVERYBODY should be stuck with a bad credit rating – no matter what the circumstances are!??? Ever heard of a "second chance"!? Even God forgives us for our sins!! Of course, there are people who think grows on credit cards, it’s just a piece of plastic! I understand that, and they get out from under by filinf BK! Maybe, and maybe not, they learn a lesson, but don’t be judging all mankind as deadbeats!
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March, 25th 2010 at 3:53 am
I agree. I might make an exception for rare people who are ruined for reasons beyond their control, but for the most part consumers dig their own holes and shouldn’t be forgiven debts that responsible people either pay off in time or don’t accumulate in the first place.
People know what they make and what they can afford. They just choose to overlook it when they want something new.
Health insurance is so cheap in the US that there is no reason not to have any. Job loss is a risk to everyone, and so the grown-up thing to do is not to use credit to supplement one’s income. If you lose your job, get another one, even at a fraction of your original salary, rather than sit around for a year waiting to be offered more money.
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March, 25th 2010 at 4:34 am
because most bankruptcies have nothing to do with irresponsibility!
the number one reason for personal bankruptcy is a catastrophic medical event.
the number two reason is long-term job loss.
the creditors don’t lose much in most cases unless the credit was unsecured such as credit cards. in the case of credit cards the creditor has already made a profit on the money due to their fees and interest rates so they have no loss and that is why unsecured credit can be cleared.
either way(secured or unsecured) creditors get to take tax credits for the loss and it does not hurt them. many creditors prefer to force people into bankruptcy rather then work on payment plans because of the tax right offs and the justification it gives them for the outrageous rates and fees they charge.
there are loopholes that should be closed i agree and limits to how many times a person or business may file but the facts are that creditors get as much out of bankruptcy as debtors and the majority of filings has nothing to do with irresponsibility.
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