Reply #134: Isn't this a difficult problem.... [View All]

[sendero]

.... the provisions in this bill that prevent write-off in bankruptcy are indefensible IMHO. They would have been reasonable if exceptions for medical/unemployment/other reasonable unforeseeable calamities were made.

But I'm pretty much on board with this minimum payment mess, although I would have preferred a phase-in where only newly incurred debt was handled that way, but the accounting for that would have been a nightmare.

Why? Because way too many Americans are basically innumerate and do not understand the simple FACT that paying 2% on your debt every month is getting you NOWHERE.

Credit/lending laws are rife with similar constructs to protect the borrower, from disclosure rules to collection rules. Everyone seems to have no problem with these - so please stop talking out of both sides of your asses on this point. It is an improvement to prevent CC companies from essentially collecting interest-only payments forever.

Now if they would outlaw mortgages with interest only or reverse amortization, we'd be getting somehwere.