Who is legitimately suggesting that? This guy should have paid off his debt. But he should have paid off only his debt, not three times his debt plus losing the thing the debt was incurred for so that the entity holding the debt could make even more money off of it.
If the debt hadn’t ballooned to an absurd amount, he could have gotten out from under it. But instead he fell victim to a system that is specifically set up to trap him in an unending spiral of debt.
Again, yes, he made a bad choice, although at the time of his choice it wasn’t all that bad because he could afford to discharge the debt. No one can predict what’s going to happen in 2 years. I have a mortgage. It’s costing me more per month than the mortgage payment because I have an insurance policy that will pay on the mortgage if I get too sick or disabled to keep working. I’m not sure such things are, or more to the point were, available back in the 90’s for car loans, especially for people with bad credit. If I didn’t have that policy I’d be taking the exact same risk this guy took, because I can’t possibly afford to pay off my mortgage if I lose my job.
What gets me about these conversations is that we all take risks, but the higher on the socioeconomic ladder we are, the more those risks are absorbed by people who are lower on the ladder. The banks took huge risks in the buildup to the housing crisis, and when they lost their gamble, the entire country gave them money to cover the loss, and they still insisted on collecting that money a second time from their debtors.
That’s building again, and this time it’s in car loans. People are taking out 8 year loans to buy $60,000 pickups. Yes, that’s insanely stupid on the part of the people taking out the loan, but it’s also insanely stupid on the part of the banks because as soon as people start defaulting on those loans, the whole system’s going to collapse again. Of course, the banks have no particular incentive to care because they made out like bandits the last time the system collapsed.
That’s what this boils down to - do you have the sense that you need to act responsibly toward society as a whole or not? “This person who has no financial education and may not have even graduated high school did something dumb by believing this other guy who has a masters in financial management who told him the loan was no problem” is a true statement. But it overburdens the debtor with responsibility that is at minimum shared 50% with the company handing out the loans and it ignores the fact that when the system collapses, again, the vast majority of us are going to suffer, again.