>what is it >why do some people hate it >how to avoid it >is it fair
>>1567685 (OP)I think one case it pops up is in hire-purchases where you acquire the item but are still yet to pay it off fully (like how you mortgage a house and live in it whilst you are paying it off). If you fail to meet a certain number of instalments then I guess the buyer comes to reclaim the item, since the contract was broken and they have lost their trust that you will pay it off fullyIt's annoying because if an emergency pops up, one would prefer to have fewer short-term expenses so they can dedicate all your cash towards mitigating that emergency. Someone with instalment plans instead needs to set aside money.Also you have to pay interest or a markup on the item's price I assume, so in the end you do pay more than someone who bought it upfront.I'm not sure if fairness applies to Hire-purchases, since you can just choose to not hire-purchase if you don't want to be at risk of reposession. But I suppose the nature of the hire-purchase can be made more fair. Imo the seller ought to be lenient and allow the customer to pay instalments late, arrange a new payment plan, freeze the plan if the person faces medical/mental problems etc. And ofc it would be consumer finance legislation that would ensure that flexibility.In another case, if you are a sole trader and have wracked up tons of debt that you can't pay, then I think eventually the courts can sell your belongings to pay off some of the debt? Not sure. (key word is unlimited liability)
>>1567685You rent a material thing, or you try to purchase it but you pay in installments. If you stop paying and you don't return the thing, the repo man comes and takes the thing away (usually to return it to the original owner).People "hate it" because it takes the thing away while they might still be using it, and there is usually little or no recovery of payments already made (if it was going to be a purchase).How to avoid it: don't rent things, don't do payment plans longer than one or two installments, manage your money so you don't default on payments.Is it fair: I guess so? How'd you like it if someone gave you $500 and then ran off with your car and you couldn't do anything to get the car back?
