[ArGee]

Now, believing that "God is merciful" and "God damns people to Hell for all eternity," there's a contradiction!

There is no contradiction in G-d's mercy and the existence of Hell.

Shalom.

[malakhi]

There is no contradiction in G-d's mercy and the existence of Hell.

Sure there is. We are finite beings. Any action we undertake has finite consequences. Infinite punishment for a finite sin is unjust.