Remember that banks make money by lending to borrowers likely to generate income,
without defaulting on their debts.
Not exact matches
The populace has run out of its capacity to take
on new
debt without going quickly into
default on the
debt already issued.
It seems unlikely that Hellas will manage to repay its summer
debt obligations
without the agreement of its creditors or a significant drag
on its real economy (in the form of
default on obligations against its suppliers and employees).
If we can't even get our (extremely generous to private corporations) healthcare law enacted
without half our lawmakers threatening to shutdown the entire govt and
default on our
debts over it, there's no way we're going to have first world maternity leave.
But given the history of fraud and abuse in the
debt relief industry, the inability to provide any legal advice, and the carnage that can be done by
defaulting on debt without some real protection, the
debt settlement company and credit counselor risks are too great and the advantages too nominal.
If you
default on an unsecured
debt, the creditor can't take anything you own
without first going to court, winning a lawsuit, and then getting the judge to allow them to take an asset.
Fourth, a company can
default on particular
debt without necessarily going into bankruptcy.
Studies have shown that students who take
on debt without graduating are three times more likely to
default on their loans than borrowers who earn their degree.
While interest payments
on regular
debt can not be missed
without risking going into
default, preferred dividend
on the hybrid
debt of preferred stock can be suspended from time to time.
Nearly 7 million Americans have gone at least a year
without making a payment
on their federal student loans, a high level of
default that suggests a widening swath of households are unable or unwilling to pay back their school
debt.
One out of every six college graduates is in
default on student loan
debt and an estimated 3.6 million people have gone at least a year
without making any payment at all
on their college
debt.
[i] Outlining his student loan plan in the Washington Post last year, erstwhile presidential candidate Governor Martin O'Malley wrote, «we should cap the monthly payments
on students» loans, so students whose passion is teaching or policing or national service can pursue their dreams
without worrying about
debt or
default.»