the more I'm debt you get the more you owe them,

Well, in the past (and the present in many places) perpetual unrepayable debts were used as a way to implement slavery without calling it slavery. They call it debt peonage. You know, food for thought.

Short term it pads the companies books a bit more by adding an asset on top of the revenue. Medium term it's a perpetual impairment generator. The executives are just planning to cash out before the inevitable happens.

“Capitalism breeds innovation”

Meanwhile we have monthly installments for monthly installments.

It helps people who can still pay on average but have an unexpected cost which, due to higher bills, now pushes them into the red.

Because in the summer people run the AC more than they can afford and rack up like $300 bills when their off-summer average would normally be like $70. The loan programs are more like a deferred payment plan where they will cap the individual monthly payment at $150 or something, and then just push the surplus onto other future bills. Then usually when you close the account you owe them a bunch of money still, and that's when they start doing things like offering to set you up with loan services.

I guess they cover you for a while until you figure it out. It's better than nothing ig.

Have you heard of the concept of company towns?