tag:blogger.com,1999:blog-9993543.post-1110559564997551822005-03-11T09:46:00.000-07:002005-03-11T09:46:04.996-07:00<a href="http://insider.washingtontimes.com/articles/normal.php?StoryID=20050310-114935-9596r">Senate passes reform measure / The Washington Times INSIDER</a> <br /> <br />I'll never understand why expecting people to repay their debts is considered a corporate hand out on the left. If I buy a sweater at the mall using a credit card, I should be expected to pay the credit card company that cost plus interest. The point of credit is to allow you to purchase something today and pay over time, thus allowing higher dollar items to be purchased earlier in life (most common example: your house). <br /> <br />Most creditors and independent companies offer insurance to repay credit debts in the event of death, illness, etc. Choosing to not carry such insurance is a risk that each individual must evaluate. Carrying a $50 balance probably doesn't warrant it. Carrying a $10,000 balance just might. In any case, why should the creditor be left holding the bag? <br /> <br />A point missed in the conversation is that this actually helps low-income families. Currently, credit (and the corresponding interest rate) is approved based on credit scores. The creditors looks at those scores and determines the risk they are assuming in issuing an individual credit. If you remove some of that risk in the form of bankruptcy, the creditor will be forced to compete with other creditors and lower the interest rates for traditionally higher credit risks.Commandanthttp://www.blogger.com/profile/05907537267562447618noreply@blogger.com