I legitimately can’t spell it out any better, I’m sorry, but that was my last hailmary
Then you really should take some more classes 🤪
A lender only has so much money, and they can lend that money to anyone. If someone defaults on a loan, the lender experiences a relatively large opportunity cost, as additional funds, effort, and time are required for any repo or garnishing - and in the end, it’s quite rare to actually recoup it all. If they had lent that money to someone else, they could have gotten all the money without any additional cost.
It gets more complicated in the middle - someone who pays extra and on time won’t make nearly as much as someone paying minimums.
Then you really should take some more classes 🤪
A lender only has so much money, and they can lend that money to anyone. If someone defaults on a loan, the lender experiences a relatively large opportunity cost, as additional funds, effort, and time are required for any repo or garnishing - and in the end, it’s quite rare to actually recoup it all. If they had lent that money to someone else, they could have gotten all the money without any additional cost.
It gets more complicated in the middle - someone who pays extra and on time won’t make nearly as much as someone paying minimums.