> We owe money to the creditors... and what you do with a debt is to you pay it off.
That's not the case. Sometimes, you pay your debt off. Sometimes, you default, and file for bankruptcy. For lenders, it's the cost of doing business. If they don't want to deal with the possibility of bankruptcy, they shouldn't lend out money.
Lenders charge creditors a premium, because of the risk of default. It's as much on them to be careful about who they lend money to, as it is on the creditor to be careful about being able to pay off their debts.
That's not the case. Sometimes, you pay your debt off. Sometimes, you default, and file for bankruptcy. For lenders, it's the cost of doing business. If they don't want to deal with the possibility of bankruptcy, they shouldn't lend out money.
Lenders charge creditors a premium, because of the risk of default. It's as much on them to be careful about who they lend money to, as it is on the creditor to be careful about being able to pay off their debts.