• Neato@kbin.social
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    1 year ago

    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.

    • CandleTiger@programming.dev
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      1 year ago

      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.

      • Neato@kbin.social
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        1 year ago

        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.

        • InputZero@lemmy.ml
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          1 year ago

          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.

      • TurboDiesel@lemmy.world
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        1 year ago

        Same thing with my mother; she started getting pummeled with cc mailers within 6 months of her filing.

    • CADmonkey@lemmy.world
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      1 year ago

      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.”

      • Neato@kbin.social
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        1 year ago

        …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.

    • theFibonacciEffect@feddit.de
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      1 year ago

      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…

  • Gigan@lemmy.world
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    1 year ago

    Destigmatize using credit cards to fund a lifestyle you can’t afford

    • Grayox@lemmy.mlOP
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      1 year ago

      Existing is a lifestyle most cant afford at this point, but ok.

        • ashe@lemmy.starless.one
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          1 year ago

          …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.

      • Gigan@lemmy.world
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        1 year ago

        If you can’t afford to exist you definitely shouldn’t have credit cards, because then you’re just existing with interest.

        • Grayox@lemmy.mlOP
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          1 year ago

          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!

          • robotica@lemmy.world
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            1 year ago

            Unless your spending outweighs your earnings (in that case not even credit cards will help you), there is no reason to use credit.

          • PeWu@lemmy.ml
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            1 year ago

            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 …

            • Bluefruit@lemmy.world
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              1 year ago

              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.

              • Gigan@lemmy.world
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                1 year ago

                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.

                • Lexi Sneptaur@pawb.social
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                  1 year ago

                  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

                • Bluefruit@lemmy.world
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                  1 year ago

                  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.

              • uid0gid0@lemmy.world
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                1 year ago

                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

                • Taco@lemmy.zip
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                  1 year ago

                  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”

          • Gigan@lemmy.world
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            1 year ago

            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.

            • Grayox@lemmy.mlOP
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              1 year ago

              Nope, that would be because of rampant consumerism being sold as the solution to depression.

              • Gigan@lemmy.world
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                1 year ago

                I agree, but ultimately it is the individuals decision to engage in rampant consumerism and accumulate debt.

                • Grayox@lemmy.mlOP
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                  1 year ago

                  Yeah cause getting into crippling debt is a totally conscious choice /s lmao

    • slazer2au@lemmy.world
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      1 year ago

      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.

      • Gigan@lemmy.world
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        1 year ago

        Credit card companies: “We’ll give you 1% cash back and charge 25% interest”

        Americans: “Wow 1%! This is a great deal!”

    • JokeDeity@lemm.ee
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      1 year ago

      I mean, I paid what I borrowed, and they’re still saying I owe nearly that much. Reality doesn’t jive with what you’re saying when interest rates are so high that it crushes you into a hole just for borrowing.