As I read the article, there is no government money involved. The banks want to forgive up to 40 percent of the debt in an effort to recoup the other 60 percent rather than lose 100 percent because the person can’t pay. While this may initially sound like deadbeats getting another break, we need to consider the practices of the credit card companies.
Many of these people borrowed relatively small amounts but were charged interest rates and various fees at a rate a self-respecting loanshark would have been reluctant to charge 20 years ago. It is not unusual that a person who had a four to five thousand dollar debt saw his interest rate double or triple and incurred fees greater than the original interest. Many of the people have paid more actual dollars than they originally borrowed but still have a balance greater than the original loan. The predatory practices of the credit card issuers do not warrant sympathy.
Making a decent profit is absolutely necessary to remain in business but gouging people just because you have the power to do so is not free enterprise at it’s best. I normally think everyone should meet his or her obligations but when I encounter a skunk and a porcupine involved in a pissing match I normally don’t pick a favorite.
I hope what you say is true. But I smell another bailout.