The Brutal Logic of the Debt Spiral

The logic of the spiral is brutal. You lose your job. You use credit cards to survive.

You max them out. Now you are paying 20-plus percent interest, and the powerful

compounding effect starts working against you. Naturally, the next logical

step is to try to get a loan to stop the bleeding, and this brings us to the cruel

irony of the banking system. Banks love to lend you money in sunny days,

when you don't need it. But the moment you need it the most, they slam the door.

When you lose your income, you statistically become a high-risk borrower.

Lenders will either decline you or approve you at predatory interest rates. This is how you