Consumer debt crunch and division by two

Wojtek Sokolowski sokol at
Mon Jun 8 09:24:55 PDT 1998

At 10:54 AM 6/8/98 -0400, Doug Henwood wrote:
>* I'm not sure what consumer debt crunch you're talking about, but I'd
>argue that VISA cards have helped stave off social degradation, or at least
>material degradation, not to mention a political reaction against stagnant
>or falling real incomes.

Not to mention the fact that credit card debt is a form of unsecured loan - which means one can legally default on payments (Chapter 7 bankruptcy) and keep most of the personal goodies (ok, the art collection will have to go).

Hence the possibilties of the debt swaps, student loan to credit card or mortgage to credit card - NOTE: do not do it directly to avoid suspicion of the bankruptcy judge, pay your other debt with cash and use your VISA to pay your living expenses.

So I agree with Doug, a VISA or a MasterCard can be a way out of the debt slavery, if used properly :).



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