Surprising with the high interest rates? Or not? Are consumers so ignorant/stubborn that they just keep borrowing at ridiculous rates? How much of this is from compounding interest? And the banks keep making the loans… ugh. Seems like we’re setting up another 2010.
Relevant story - A close friend’s brother-in-law ended up getting kicked out of his family house for reasons not worth going into. He and his wife are splitting and their assets/debts are under a microscope. They’re renters with a bunch of credit card debt and an auto loan. The auto loan is for 28K. The auto? A 10 year old Mazda with a max value of 10K!! Do these banks really make enough in jacked rates, late fees, etc. to cover the reckless lending and defaults?
Morning, Matt. Hope to find you well and in good spirits today.
I concur with your questions.
My auto loan was for 32K at 4.1%. The auto? Chevy Colorado Black Edition. In 5 years it was paid in full. A 10 year old Mazda with 28K on the loan with a max value of 10K equals 2.5 X times the loan? How the hell can that happen. Predatory lending? I thought there are laws against that.
My credit cards sank me. That I tried to over come and made bad choices.
As for family’s stateside and in my country getting in debt. I liken it to, "Monkey See, Monkey Do effect. " Your commander and chief said, I made a fortune off of being the King of Debt but its bad for the country and threw another close to 8 trillion dollars and is about to do it again.
As well, the governing party at the time do it with ease, or so it seams, leaving it for the next administration to fix the mess.
That is what I see.