Lowering interest rates or principal is not enough when it comes to irresponsible borrowers. In my opinion, all high-risk borrowers (those who have defaults more than 60+ days) should be mandated to take a financial education course, to learn how to budget, save, and get off the credit card merry-go-round. Don't want to take the course? Then give the keys back to the bank and go find other housing arrangements. If we don't take some drastic action, our permissive, nice guy attitude is going to bankrupt our country and strangle our future economic development!
Come on, Congress. Get it together
Good point and that sounds like a great idea on making these people take classes. But the lendor has to take some responsibility as well. When someone that has no credit sense and goes to borrow 20 grand and then the bad bank lendors come back and say "Wow you qualified for 60 grand, lets go ahead and set you up with that!"
There are so many people in this country that would fall for it and wind up defaulting on loans like this.
Some of these banks push the money at people like loan sharks of the streets.
I think some classes would be a great idea for the general borrowing public.
I know no one is holding a gun to there head but there are so many people that have no sense what so ever in managing there money.