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An idea for credit defaulters!

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10/13/2015 9:53:46 PM
Posted: 2 years ago
Let's suppose in a society of 1000 people 100 are credit defaulters due to non payments against their loans. So what if the government decides to forgive their all loans. The government clean their names from the national credit register but further restrict these 100 defaulters from taking any new loans for the period of next say 3-5 years. The defaulters only need to pay say 100-150 dollars each month in case unemployed from their social money and 200-500 dollars if employed and have suitable earnings. The collected sum from all of these 100 defaulters would go to a joint fund supervised by the government which later on the government can use to payoff the debtors.

Impact: The biggest impact of this would be after three years when these 100 defaulters would enter in the society as fresh.

Preconditions: Defaulters can only use this opportunity once in a life time.
Only defaulters with loan up to 50,000 dollars are eligible for this program.

I would really like to hear your feedback on this and please feel free to educate me if I sound a maniac to you.