..just pointing out that when I said/typed "Yes, you signed a contract", i did that to pre-concede that it is a persons choice to use a credit card. So, I was hoping not to get an ear-full on that.
The main point of my post is that the hard-lined view about debt does not take into account people who (for what ever reason) find themselves in a situation where they are stuck with a bill, largely (or even completely) of interest and penalty charges.
What if you made a short-term loan of $5000 from your neighbor agreeing to pay $5500 back within a month.
Let's say you pay him back the next day and he agrees to forgive the $500.
I think most people's sensibilities say that the deal is private and no tax is owed.
However, the IRS might see this as a loss to them since you didn't earn (say) $750 and paid (say) $250 to the IRS as income tax before making the $500 payment to your neighbor.
So, you and your neighbor said some words, made (effectively) no exchange, and a third party (IRS) thinks they should get $250. For what?
These idiosyncrasies expose fundamental problems with income tax.
Take note of the post (above) about the 1099-c and you'll see that there are those who oppose this specific taxation.
(Also take note of other posters who obviously didn't read anyone else's posts. uuhg).