Advantage to the debtors.

[king1]

You shouldn't have to pay such a high price for borrowing money, even if you default the penalty should not be so harsh. It is a necessity today to have money and that is all they are doing, acquiring money so that they can carry on living. It's so backward to financially penalise a debtor who is trying but can't afford the repayments. Why the hell would they then put them into EVEN MORE! financial hardship. That's is so backward for forming a healthy population where we all move forward together not just a chosen few. The govts today want a 'sick' nation, namely a mentally sick nation because we are easier to manipulate, control, deceive and conquer. Sick people don't ask questions because they are too busy being 'sick' all the time. It's a real problem. 

I think the only interest that governments have in debt and lending etc is economically driven, it allows people to spend money that they otherwise would not be able to spend, which helps boost the economy.  

But the problem with not having financial penalties is so many members of society will conveniently forget or ignore their obligations if the penalty was not there - just ask any business owner... and then there are the absolute ratbags who actively go out of their way to rip people off.

My mum told me when I was about 8 that "debt is BAD" and "if you don't have the money in the bank, you cannot afford it..." - words of wisdom i'm glad she imparted, obviously I had to moderate the debt is bad mantra to buy a home and pay the student loan.  I did fail miserably when I got my first credit card at 18, loaded that up and spent the next two years paying it off.  Last time I did that...  

What is backward about it is that living on credit is so normalised nowadays, but ultimately though I think it is up to the individual themselves not to get bonded to the loan sharks