They are replacing higher wages with credit.
I'm old enough to remember when you used to oppose debt creation.
Consumers are going into debt, they're not paying down debt. They are going into debt because wages aren't rising. So just like last decade, people are using credit to replace real wages for spending. How long do you think that consumer debt bubble can sustain on its current course?
Hmmm...so...in order for the economy to grow, consumers must take on more debt. And BTW - personal loans are unsecured.
You forgot to mention that APR of unsecured debt to high risk consumers is 24-30 %. No trickle down wage gains would cover that if indeed
people are financing recurring expenses on CCs. Nevermind the service fees, late fees that tick it up near 40% effective apr.
Personally I'm a "freeloader" as far as that is concerned. I just pay them off each month and pay nothing while the poor people
support the business model. I didn't use to be able to do that. I negotiate debt all the time. As long as you don't dick me around I'll
give you a huge break. The second you get righteous and act like a victim? Well, I may give you one more shot, but any consumer would do
better with me by playing it straight and just negotiating a payout on time no interest whatsoever. 1. Don't pretend you don't owe 2. take fucking responsibility
3. don't take the offensive then you get a sweetheart deal that cuts it in half given annuity valuation. IOW, don't be a Trump.
On the RE commercial side, no deals, I'm secured with firsts or seconds and if there is equity, I either get the money BIF or take the collateral, same
with Merchant cash advances. That's business, not consumers.
Anyway, my advice for any debtor is cut the bullshit, be honest and try to pay your damn debts. You'll feel better about yourself.
You know who is bothering people who don't owe money they refuse to pay? Nobody.
