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RE: LeoThread 2025-04-06 20:09

in LeoFinance6 months ago

Part 3/10:

To understand the rise of modern credit systems, we must look back at their evolution. Conventional long-term loans, which require collateral and come with serious repercussions for defaults, have paved the way for short-term unsecured loans. The advent of consumer credit in the 1950s has brought us to a point where individuals can borrow money almost instantaneously without a thorough vetting process. As a result, the proliferation of credit card debt and the subsequent growth of BNPL services reflect a significant shift in consumer behavior, marking a departure from the traditional understanding of financial responsibility.

The Buy Now Pay Later Model: A Double-Edged Sword