Optimal Finance Daily · Sunday, August 9, 2026
Sam contrasts credit behavior in the US with India, suggesting that the difficulty of obtaining credit in India leads to lower default rates. Indian individuals, he notes, cherish credit due to its scarcity and the social implications of default, unlike in developed countries where credit is readily available, potentially leading to complacency.
“If you go to India where microlending is becoming big business, research what their default rates are compared to the United States.”
“Default rates are way below industry norms because each person recognizes how difficult it is to get credit.”
“Life is too easy in developed countries. We become soft, indebted, and lazy, just as creditors want us to be.”