1) The nature of interest in unsecured loans is high interest (almost by definition) and increasingly so if you are seen as a credit risk. Thus small debts compound over time making them unbearable for longer.
2) Our friend is merely Keeping up with the Jones’ despite never going above a zero balance.
One of these is uncharitable and ridiculous- the other is a known issue that keeps people in poverty.
I guess I wasn't being clear: I wasn't talking about the person from this thread!
You said:
> Most people are about 2 bad decisions from poverty.
My reaction was to this. I agreed with you, and added the cause: utter financial recklessness. People spending money on things they don't need instead of saving say a quarter of their salary.
For some time I was earning a couple times the average salary in my region of the world. Yet I found that spending about the average salary was more than enough to live a very comfortable life. I feel this is not the norm for whatever reason: most people inflate spending to match their income, and then they're 2 bad decisions (or even some bad luck) from poverty.
