Forum Post: What is Forever Debt.
Posted 9 years ago on Aug. 12, 2014, 11:52 p.m. EST by DebtNEUTRALITYpetition
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One problem I have with economists who speak of consumers servicing their monthly debts is they never tell us what it would cost to eliminate the debt.
My latest blog article, short but to the point. http://alexlogicwords.blogspot.com/2014/08/forever-debt.html
What is forever debt? Or Usury - ( alive and thriving in these United (?) States ) by any other name is still Criminal.
A good rundown of this thriving blight on humanity ( again - From A Comedian - and - NO - not a public service announcement ) :
Tue Aug 12, 2014 at 12:31 PM PDT John Oliver's amazing takedown of payday lenders: 'Even cluster@#$%s are bigger in Texas'
by mlangenmayrFollow
Going to add that there are times when payday lenders actually do save someone's butt. LIke they are short 40 bucks and as a result will face huge penalties and fines. A loan from a payday vendor at times can save somebody from bigger, immediate fines. The key is to not get caught in an ongoing cycle of payday loans.
I will respectfully disagree - and encourage you to contemplate on Sarah Silverman's closing bit ( perhaps should be a public service message ? ).
Where is the link?
http://www.dailykos.com/story/2014/08/12/1321032/-John-Oliver-s-amazing-takedown-of-payday-lenders-Even-cluster-s-are-bigger-in-Texas
Payday loan companies do require a person to have income. They don't just give money out than put people hopelessly in debt.
I went to a consumer financial protection bureau meeting in Los Angeles in May of 2013 and there were literally a couple dozen payday speakers, not all were employees, some were actually customers.
I'm just suggesting that if a person is short on cash and they know they have more money coming in, just not right away, a payday loan can save them from accruing fines and penalties from overdraft fees when they might just not have enough money to pay a bill when it is due.
https://occupywallst.org/forum/what-is-forever-debt/#comment-1043092
BTW - if you did not have the money to begin with - with ones established regular income - why should one expect good results by removing further what you already don't have in advance of your already inadequate regular income?
a one time expense can throw a monthly budget off whack. Imagine being 60 bucks short causing two different credit cards to raise the interest rate if they don't each get their 25 or 35 dollar minimum. In that situation, a payday loan, if one is approved, saves the consumer from what could potentially be hundreds of dollars in penalties, fines, and an increase in the interest rate charge. If the 60 dollar loan is paid back next month, I don't know what the total charge would be, I'm assuming around 85 bucks? Well worth it to avoid late payments.
https://occupywallst.org/forum/what-is-forever-debt/#comment-1043102
I'm ok with the concept of credit cards and credit card debt, up to a point. I'm not ok with calling credit cards unsecured if the credit card company can go to court and get the debt secured. If an unsecured debt can become secured, it was never truly unsecured debt. This would also mean that extra 10 to 15% in interest rate charges could no longer be justified either.
Other issues, no reasonably priced debt suspension insurance is in play because credit card companies and the FED/comptroller of the currency blocked insurance companies from offering competing debt suspension insurance products. I guess workers can compete 10 to 1 for a job, but corporations should get a monopoly when it comes to debt suspension insurance and then overcharge for the insurance by 1,000%
But getting back to forever debt, economists, by never mentioning what it would actually cost to pay off ongoing monthly "serviceable" debt, are playing into the banker's hands.
It's just a new statistic I am suggesting be added. We have "monthly serviceable debt," how about "monthly paydown debt" numbers as well.
The more complicated one can make an issue - the easier to do all kinds of crime and call it legal. Credit cards gave birth to an ever expanding/escalating " vicious cycle/circle " lending/usury slavery.
For another perspective/viewpoint/angle on the speeding demise of society the practices of the unsustainable are numerous and all feed into the decline ->
Tue Aug 12, 2014 at 01:28 PM PDT Your Services Are No Longer Required - The Coming "Great Idleness"
by JaxpaganFollow
There is an amazingly simply solution to credit card debt. Immediately reduce everyone's credit card debt by around 65%, then simultaneously raise the monthly minimum payment from 2% to 5%. What this does is keep the minimum payment similar to what it was before, but with a superior principle to interest rate spread.
This does two things, it discourages the running up of even more debt because the monthly payments get much bigger right away. However, it actually increases everyone's buying power by reducing the amount that goes to interest rate charges versus what can be respent, reduces their debt by 65%, and gives consumers a reasonable chance to actually pay down their remaining credit card debt.