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.