I guess I need to jump in here to provide a reality check.
Short intro you have to weed through to give you some insight. My mom and dad had a small grocery store in the Adirondacks back in the late 50's early 60s'. Just before I was born. (1) gas pump, small store. Beer, bread, and cigarettes. That was about it. Early convenient store. (Think Appalachia Mountain poor) Dad would give all his drinking buddies credit. They would stiff him. Mom & Dad were poor also. Five kids (before me) and increasing debt as a result of extending credit. Needless to say, they went bust. They didn't file bankrupcy, but probably should have. They made arrangements witheveryone to repay the debt, out of their pocket. THEY MADE THE DEBT. Even though their people they gave credit to walked away on them. "Your out of business, I don't owe you"..
Dad passed on TWO lessons he learned.
1.) Never give credit, unless they DESERVE credit and can pay it back. (look up the word credit)
2.) Never do business with friends
Needless to say, when I was born a year after disolving the store. We didn't have anything growing up. They repaid the debt in full by 1972. Dad retired in 1981.
Sam, about mortgage rates... If YOU were lending your buddy's cash, WHO would you loan it to? The guy that pays you back all the time(Good rating) or the guy that stiffs you (poor rating) ?? We're not talking about $50 beans. I'm talking THOUSANDS of dollars. Remember, that the bank is there to MAKE money, not provide a charity service. The manager, or loan officer has to answer to the board, and the stockholders. WHY should they care about how anyone runs your finances? Its obvious they can not live within their means, if their continual credit history is poor. Key word here is continual. If they are always late, they should not go for the extravagances. No one NEEDS the internet. Nor NEEDS cable TV, nor NEEDS cigarettes, beer, and a whole host of other perks that are afforded to those who can afford them.
The insurance industry is the same. Its about managing calculated loss. Why should the people that can manage their assets pay extra to offset costs derived from people who don't. (Collections for stiffs) They are simply rewarding those who comply with the agreement with better rates, than those who do not. The costs of collection, late fees, legal, etc. can be staggering. Put the onis on thise who create the problem.
As far as costs based on professions, who is more likely to have problems? An office worker or a guy in the coal mines? That adds into the calculations as to what the outlay of cash for the company will be.
Who needs car insurance more? Bad drivers or good? Why should good drivers pay the debtload for bad drivers.
Its all the same thing.