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Four Types of Revolvers:1. On low income with poor Financial Literacy Capacity - managing money whilst on a low income and drawing upon low Financial Literacy Capacity is infinitely more challenging than for those that are, or have been, on good salaries, inherited wealth, good genes and mentoring by their parents and peers etc - approx. 40% of Revolvers and 50% of Persistent Revolvers.
2. Reasonable wealth and income that succumb to Compulsive Buying Disorder - approx. 25% of Revolvers and 15% of Persistent Revolvers.
3.
High on Assets,
temporarily Low on Cashflow. The
Writer recently lent
several thousand dollars to an old bank work colleague who owns two adjoining semi-detached houses in the Willoughby
area. He has previously rented one and lived in the other. He would possess level 4
Financial Literacy
Capacity. He is refurbing both sides presently, whence he will rent both and continue to live with his 'mom'.
He has over $2.5m in equity. His banker (one of the
Four Pillars) declined to
increase his mortgage, perhaps because his
Four Pillars banker is earning more on his
three Credit Cards. He has another two credit cards with the bank he
worked for many years.
4. Milk the system scallywags. In Feb 2018, the Writer mentioned to a few B&B swimmers that he swims with, his interest in addressing inequities in Credit Card pricing, Predatory Advertising and some Credit Card Issuers' propensity to issue credit cards 'willy-nilly'. A female swimmer in her 50s told the Writer that she has worked in debt collection for several years and the worst case that she had experienced was a man of ill-repute intent on 'playing-the system' that had 25 Credit Cards. The Writer gleaned from her comments, and the tone of those comments, that many of the debtors that the debt collection firm that she works for pursues are of ill-repute, meaning dishonest. Not all Persistent Revolvers are vulnerable people with poor Financial Literacy Capacity -Milk the system scallywags would account for approx. 10% of Revolvers and 15% of Persistent Revolvers. Of the above Four Types of Revolvers, the initial two types are candidates as Eligible Persistent Revolver Plaintiffs. It would be necessary to 'Test/Measure' potential Eligible Persistent Revolver Plaintiffs rigorously to ensure that each met the requirements in (2.) of Eligible Persistent Revolver Plaintiffs.
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