>>Debt "slaves" is a lie.<<
Let me give you just one example.
In the US, if you have a judgment against you, it is legal for the lender to garnish your wages and take 25% of your takehome pay. In Virginia, the creditor can do this every six months, seamlessly, without any respite in between. And, at the contract rate of interest, which, can be as high as 29% -- actually there is no legal limit, this is just the highest I have seen so far.
So, just one example. One of my clients owed a vehicle loan of $5000 -- co-signed for a friend, who defaulted, the car was repossessed, the creditor got a judgment against the client and started garnishing her wages. Three years later, after having 25% of her takehome garnished every week, she now owes $8500. 25% of her takehome isn't enough to even get ahead at 29% interest. She is falling further and further behind
She's never going to be able to pay off that debt.
If that isn't slavery, I don't know what is.
Should she have foreseen this? I doubt very many people even know this is possible. I didn't until I saw it. |
