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"And surprisingly credit agencies are willing to come to arrangements on the basis that something is better than nothing."

Not suprisingly. The credit companies do quite well. They've got far more to gloat about than your passenger. Those huge debt figures can be due to the accumulation of interest and late fees. Victims of easy credit often end up paying many times more than they borrowed because interest accumulates so fast. You can borrow a few hundred dollars and end up paying thousands in interest before you "renegotiate" or declare bankruptcy. By renegotiating the credit companies just squeeze a few more dollars out of a person they've trapped with their scheme. It's usury pure and simple.

There are two ways to make a profit lending money. Lend responsibly which means only to people who can pay it back at reasonable rates and stop lending if they get in over their heads. Or, irresponsibly which means give them as much credit as they like at high interest until they're way over their heads and can't possibly pay you back - then keep charging them interest until they've paid many times what they borrowed and they finally figure out they've been made a fool of and declare bankruptcy.

Why do the credit companies follow the irresponsible path? Because they make more money that way. The credit companies are doing far better than your passenger.

Borrow X amount from a "Harvey Norman" no interest scam, recieve a letter offerng a new credit card, use it and pay for all interest you thought was free - even if it is paid off. Money for nothng and your kids education is free.

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