Spouting, I've read similar arguments from other sources and they seem at least worth considering. However, note that lending with collateral really protects the *creditor*, not the debtor. Sure, if you default on the loan the lender gets the collateral and so you're not in perpetual debt, but in exchange *you've lost your stuff*.
Spouting, I've read similar arguments from other sources and they seem at least worth considering. However, note that lending with collateral really protects the *creditor*, not the debtor. Sure, if you default on the loan the lender gets the collateral and so you're not in perpetual debt, but in exchange *you've lost your stuff*.
The really poignant pawn collateral I encountered wasn't the entertainment pieces, musical equipment, firearms, or even wedding rings -- it was the *work tools*. Default on your loan and now you lose your job as a carpenter, plumber, mechanic, etc.
Spouting, I've read similar arguments from other sources and they seem at least worth considering. However, note that lending with collateral really protects the *creditor*, not the debtor. Sure, if you default on the loan the lender gets the collateral and so you're not in perpetual debt, but in exchange *you've lost your stuff*.
The really poignant pawn collateral I encountered wasn't the entertainment pieces, musical equipment, firearms, or even wedding rings -- it was the *work tools*. Default on your loan and now you lose your job as a carpenter, plumber, mechanic, etc.
Interestingly, work tools are generally exempt from liquidation in bankruptcy proceedings.