Unfortunately bankruptcy has been disempowered strongly. There are quite a few types of non-dischargeable debt like court rulings and student loans in the US. Credit Cards are definitely dischargeable but bankruptcy has also been made as painful as possible for working people.
Credit scores, created in the 80s, are required for any type of borrowing. Bankruptcy effectively denies the filer any type of credit or loans that aren't extremely predatory and costly. You effectively have to live 7 years without credit cards, new student loans, auto loans, mortgage, etc. Which, for many people under water might not be different than they live now, sans the credit cards. But in the absence of easy revolving credit, you may still need to borrow money to avoid eviction or your power being cut. In that case, your main option is going to be payday lenders. A service so corrupt and predatory it'd probably be classified as a criminal enterprise in the past.
I know someone who has delcared bankruptcy at least twice... each time she was showered with ads for credit cards and auto loans. Apparently the thought process is "this person can't declare bankruptcy again for x years, so we're safe."
...wtf? If a person has declared bankruptsy, sure they can't discharge again but their credit score is so trash they could just ignore creditors. As long as it isn't worth it to take someone to court, they have less incentive to pay.
Well, that's unexpected but I guess CC companies are willing to risk it. Especially if they know that CCs are the only viable option they have and they can offer penalty APRs with little pushback.
I've had extended family members declare bankruptcy several times and they're still approved for a credit card. Whereas I have never missed a credit payment in my life have a hard time getting a line of credit. I don't get it, the system is broken.
...for a few hours, until you need water. And food. And shelter.
Please don't tell me that you think people living in the woods by themselves because our extremely advanced modern society with practically limitless resources compared to nearly all of history can't provide basic needs like that for everyone participating in it is a-okay.
Hmm let me see, buy groceries on credit, or buy no groceries and starve to death, i guess I'll juat starve to death lmao. Glad life is going well for you friend!
I'll play devil's advocate here: I'm on the side with destigmatizing credit cards, as it just propels the bank's wallets with interest. But if you don't have money, and absolutely must get on credit to hang on to your life, I think you should, but you should also work toward repaying the debt you've grown.
Edit: I'm actually curious as to why I got down voted, maybe I'm wrong somewhere, so take it with a grain of salt ...
Really the only good thing about credit cards is it helps raise your credit score. I only use them for that to be able to get a decent apr on a loan.Otherwise i would never use them.
People are being stupid in this thread and downvoting you. Credit cards are designed to make poor people SUFFER! There are better ways to avoid starving
True there are more. I just typically dont use it otherwise i would rack up more debt. Using my debit card is the best way for me to track my finances.
You gotta find a good one that gives travel rewards or something. We've had a few vacations with free flights because of ours. Of course you should only spend what you can pay off in a month but it still adds up
If those are your only two options, buy the food. But let's be honest here, Americans aren't in $1 Trillion dollars of credit card debt because of groceries.
You don't need credit to buy a car, only to finance one. I bought my current car used and with cash and plan to do the same for my next one. Cars are a terrible thing to finance because they lose value so quickly.
If you want to build credit for a mortgage, use it to pay for a recurring monthly payment like car insurance or a phone bill. Pay it off every month and dont use it for anything else.
You don’t need credit to buy a car, only to finance one. I bought my current car used and with cash and plan to do the same for my next one. Cars are a terrible thing to finance because they lose value so quickly.
Yet another example of how car-dependent zoning is a trap. Imagine the financial freedom people would have if they didn't "need" a car in the first place!
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You don’t as long as you have enough cash to get something and keep it running. There is a huge market for predatory car loans for people that need a car but have shit credit.
49 replies
Unfortunately bankruptcy has been disempowered strongly. There are quite a few types of non-dischargeable debt like court rulings and student loans in the US. Credit Cards are definitely dischargeable but bankruptcy has also been made as painful as possible for working people.
Credit scores, created in the 80s, are required for any type of borrowing. Bankruptcy effectively denies the filer any type of credit or loans that aren't extremely predatory and costly. You effectively have to live 7 years without credit cards, new student loans, auto loans, mortgage, etc. Which, for many people under water might not be different than they live now, sans the credit cards. But in the absence of easy revolving credit, you may still need to borrow money to avoid eviction or your power being cut. In that case, your main option is going to be payday lenders. A service so corrupt and predatory it'd probably be classified as a criminal enterprise in the past.
I know someone who has delcared bankruptcy at least twice... each time she was showered with ads for credit cards and auto loans. Apparently the thought process is "this person can't declare bankruptcy again for x years, so we're safe."
...wtf? If a person has declared bankruptsy, sure they can't discharge again but their credit score is so trash they could just ignore creditors. As long as it isn't worth it to take someone to court, they have less incentive to pay.
My MIL declared bankruptcy and after that she was awash in credit card ads. What you say makes sense but it doesn’t square with what I saw.
Well, that's unexpected but I guess CC companies are willing to risk it. Especially if they know that CCs are the only viable option they have and they can offer penalty APRs with little pushback.
I've had extended family members declare bankruptcy several times and they're still approved for a credit card. Whereas I have never missed a credit payment in my life have a hard time getting a line of credit. I don't get it, the system is broken.
Same thing with my mother; she started getting pummeled with cc mailers within 6 months of her filing.
Wow, that is very harsh that not even bacrupcy can cleanse your student loans. For court rulings it makes a little bit of sense, but this...
I DECLARE BANKRUPTCY!
I came for this.
(That's what she said)
Destigmatize using credit cards to fund a lifestyle you can't afford
Existing is a lifestyle most cant afford at this point, but ok.
Existing is free.
...for a few hours, until you need water. And food. And shelter.
Please don't tell me that you think people living in the woods by themselves because our extremely advanced modern society with practically limitless resources compared to nearly all of history can't provide basic needs like that for everyone participating in it is a-okay.
Right?! Capitalism has quite literally made it illegal to revert to a hunter-gatherer lifestyle, unless you have money of course....
Capitalism didn't make anything illegal.
Our extremely advanced society provides convenience. And convenience is not free. Go live in the woods if you want a free life.
People own the woods.
Pony up, rents due.
You're a pony? Ok
If you can't afford to exist you definitely shouldn't have credit cards, because then you're just existing with interest.
Hmm let me see, buy groceries on credit, or buy no groceries and starve to death, i guess I'll juat starve to death lmao. Glad life is going well for you friend!
Unless your spending outweighs your earnings (in that case not even credit cards will help you), there is no reason to use credit.
I'll play devil's advocate here: I'm on the side with destigmatizing credit cards, as it just propels the bank's wallets with interest. But if you don't have money, and absolutely must get on credit to hang on to your life, I think you should, but you should also work toward repaying the debt you've grown.
Edit: I'm actually curious as to why I got down voted, maybe I'm wrong somewhere, so take it with a grain of salt ...
Really the only good thing about credit cards is it helps raise your credit score. I only use them for that to be able to get a decent apr on a loan.Otherwise i would never use them.
There are more benefits to credit cards, but if you don't pay them off every month pretty much all pros are massively outweighed by the cons.
People are being stupid in this thread and downvoting you. Credit cards are designed to make poor people SUFFER! There are better ways to avoid starving
True there are more. I just typically dont use it otherwise i would rack up more debt. Using my debit card is the best way for me to track my finances.
You gotta find a good one that gives travel rewards or something. We've had a few vacations with free flights because of ours. Of course you should only spend what you can pay off in a month but it still adds up
TRAVEL REWARDS??? We're in a conversation about people starving, and you're like "oh but this one gives you a free flight to Jamaica"
If those are your only two options, buy the food. But let's be honest here, Americans aren't in $1 Trillion dollars of credit card debt because of groceries.
Nope, that would be because of rampant consumerism being sold as the solution to depression.
I agree, but ultimately it is the individuals decision to engage in rampant consumerism and accumulate debt.
Yeah cause getting into crippling debt is a totally conscious choice /s lmao
But what about all those reward points I am missing out on? If I spend big now, in a decade I may be able to cash them in on a shitty kettle.
Credit card companies: "We'll give you 1% cash back and charge 25% interest"
Americans: "Wow 1%! This is a great deal!"
Part of the problem is you have to build credit to buy a house or car, and cards are the best way to do that.
But for many it is easy to get behind and they will eat you up quick. The whole system sucks.
You don't need credit to buy a car, only to finance one. I bought my current car used and with cash and plan to do the same for my next one. Cars are a terrible thing to finance because they lose value so quickly.
If you want to build credit for a mortgage, use it to pay for a recurring monthly payment like car insurance or a phone bill. Pay it off every month and dont use it for anything else.
Yet another example of how car-dependent zoning is a trap. Imagine the financial freedom people would have if they didn't "need" a car in the first place!
Absolutely. Fuck cars.
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Good bot!
Why do you need a credit to buy a car? You don't.
You don’t as long as you have enough cash to get something and keep it running. There is a huge market for predatory car loans for people that need a car but have shit credit.
A car is a privilege, not a right. If you can't afford it - use a bus instead.
Except for Alex Jones, because he deserves all of that and worse