Re:Americans Hold Over $4.1T in Consumer Debt
by grandalf on Sunday February 26, 2017 @11:48AM
(#13738144)
> Defaulting isn't a big deal even to the banks.
True, but the ceiling on the amount that can be loaned to a person is limited by the market-driven interest rate for packages of dischargeable debt.
> not dischargable, but with better terms or interest rates
Yes, I think we'd see aggressive refinancing offers and all sorts of other semi-dark patterns... which would be irrelevant to the 98% who don't declare bankruptcy, but likely quite life-changing to those who do.
What would be interesting though would be credit offerings, cards for instance, that are not dischargable, but with better terms or interest rates.
My concern though is mandating classes of debt as non dischargable by law, banks wont necessarily pass the savings along to the customer, so the laws should allow certain types of debt to be dischargeable but subject to your agreement with the bank. So you get a non dischargeable card at 2 pts less than the normal one.