Unfortunately bankruptcy has been disempowered strongly. There are quite a few types of non-dischargeable debt like court rulings and student loans in the US. Credit Cards are definitely dischargeable but bankruptcy has also been made as painful as possible for working people.
Credit scores, created in the 80s, are required for any type of borrowing. Bankruptcy effectively denies the filer any type of credit or loans that aren't extremely predatory and costly. You effectively have to live 7 years without credit cards, new student loans, auto loans, mortgage, etc. Which, for many people under water might not be different than they live now, sans the credit cards. But in the absence of easy revolving credit, you may still need to borrow money to avoid eviction or your power being cut. In that case, your main option is going to be payday lenders. A service so corrupt and predatory it'd probably be classified as a criminal enterprise in the past.
I know someone who has delcared bankruptcy at least twice... each time she was showered with ads for credit cards and auto loans. Apparently the thought process is "this person can't declare bankruptcy again for x years, so we're safe."
...wtf? If a person has declared bankruptsy, sure they can't discharge again but their credit score is so trash they could just ignore creditors. As long as it isn't worth it to take someone to court, they have less incentive to pay.
My MIL declared bankruptcy and after that she was awash in credit card ads. What you say makes sense but it doesn’t square with what I saw.
Wow, that is very harsh that not even bacrupcy can cleanse your student loans. For court rulings it makes a little bit of sense, but this...
I DECLARE BANKRUPTCY!
I came for this.
(That's what she said)
Destigmatize using credit cards to fund a lifestyle you can't afford
But what about all those reward points I am missing out on? If I spend big now, in a decade I may be able to cash them in on a shitty kettle.
Credit card companies: "We'll give you 1% cash back and charge 25% interest"
Americans: "Wow 1%! This is a great deal!"
Part of the problem is you have to build credit to buy a house or car, and cards are the best way to do that.
But for many it is easy to get behind and they will eat you up quick. The whole system sucks.
You don't need credit to buy a car, only to finance one. I bought my current car used and with cash and plan to do the same for my next one. Cars are a terrible thing to finance because they lose value so quickly.
If you want to build credit for a mortgage, use it to pay for a recurring monthly payment like car insurance or a phone bill. Pay it off every month and dont use it for anything else.
Except for Alex Jones, because he deserves all of that and worse
