Should we create things that protect people from themselves?

Question

A friend of mine suggested making a law that people should be able to be loaned money if all their monthy payments are more than 75% percent of their income in order to keep people from over extending themselves financially. At what point do we say we need to protect people from themselves because they are not wise enough to make good decisions?

Answer 1

We already do for motorcycles... It's called helmet laws...
I guess we could do it for personal credit as well...

Answer 2

It's called "Common Sense". Some of us have it!
Others unfortunately have to learn the hard way.