Quote Originally Posted by Mael Coluim View Post
Well, everyone know the statement, 'you can't take it with you.' Applies to credit debt, too; you leave it behind! And the credit card companies have to write it off.

Now in saying all that, I don't advocate taking on more than you can reasonably pay off in a reasonable time.
Funny thing, that. You see, if they don't write off some of it, it could never be paid. Here's the thing, forgetting the part about banks lending out money they don't have and doesn't exist aside, if they charge interest, and the system is a closed system (effectively we have a closed system, since the creation of money in the States involves 'loans' and interest) then there can never be enough money to repay all the loans. IE, in an overly simple way, If I borrow $10 and have to pay a dollar as the interest, they never gave me that dollar. I have to get it from somewhere else, which following the trail, had to be lended in. If I pay back that dollar, there is 1 less dollar to pay back to the banks, and someone somewhere in the chain is going to have to default. The darker side? The more loans at higher interest, the more HAVE TO DEFAULT to keep the system working. Think how much credit cards suck the money out of the system, which then is reloaned and continues the siphoning...