-- CREDIT--

[poddster]

If all your credit cards, loans, and mortgage were called in and you had to finalize them all  by the end of  the financial year (30th June) where would that leave you and what would you do to pay your debt? 

[*mrgrizz*]

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@poddster wrote:

Not inevitable is you resist it Lurk, but it would mean a mammoth re-education program.

Some in this thread have the attitude that if it is beyond your means you wait until it is not beyond your means, I applaud those people 🙂

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where is this magical world where you can pay cash for a house?

[poddster]

You are correct mrgrizz, you have a good hold on the reality of what could happen, unfortunately you and some others here are the very small minority. The vast majority of people are oblivious of what is happening around them and prefer to put on blinkers and pretend that everything is fine. some are unable to grasp any concept that is beyond their want.

[*mrgrizz*]

why are the loans being called in?

there is a clause in almost every loan contract, where the loan provider reserves the right to call in, sell, transfer etc etc

what is the need for the loan to be called in?

[poddster]

Erica, it is all part and parcel of the same problem that has been allowed to evolve with the advent of easy credit and the raising of peoples' expectations of what they must have.

Young married couples, in the past lived in accommodation provided by one set of parents or the other, often in a flatette in the back yard, paying minimal rent to help with the overall budget of the household.

[poddster]

Mrgrizz in this hypothetical scenario the reason is irrelavant

[*mrgrizz*]

i know of no loan that has ever been called in, unless the borrower has defaulted

[freakiness]

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@poddster wrote:

You are correct mrgrizz, you have a good hold on the reality of what could happen, unfortunately you and some others here are the very small minority. The vast majority of people are oblivious of what is happening around them and prefer to put on blinkers and pretend that everything is fine. some are unable to grasp any concept that is beyond their want.

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What makes you think the vast majority hock themselves for life and buy houses they can't afford?

It seems like huge generalizations with nothing to back them up.

[*crikey*mate*]

i get your point and for most things i do agree.

but for some things, it is good to borrow within the means of your future exp[ected income.

For example, whilst there are many, many advantages to renting, I am not an advocate for it as a long term CHOICE (I emphasize the word chioice as i understand that many have no choice) because to rent you are merely relenquishing control to yet another third party to whom you become "enslaved". Fine if the advantages are sufficient enough and you have a plan B (such as a property to live in) should a rental ever becime unavailable in the future.

Many would say to rent up until you can afford to buy a house outright is a foolish move as during the interim you are paying off someone elses investment, rather than your own. especially for this generation, when the concept of pensions and guaranteed income until death are in question.

Also, in a business, it is sometimes worth short term debt to secure finance for expansion which will increase or enable increase of future profit. If the current business is able to repay the encumberment should the new business not prosper.

A lot of types of credit are IMO, bad, but ones with the potential for long term profit through increased revenue or rise in value - appreciation, can be a good thing and a worthy risk.

For example - do I NEED 4 dobbies? NO. The two I have are providing me with what i need now. BUT with 2 more doobies I can increase profits or secure a contract to provide something and increase my long term security as my stability and ability to save increases.

OR

I may want to recap my roof now, but it isn't due to rain, so it can wait a while until I save the money.... But the damage caused as a result of irregular maintenance can be more than the cost to do timely repairs and maintenance, so it might just be worthwhile to secure short term loan/debt.

(not meaning I as in me, but I as in a general question to a person)

[the_hawk*]

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@poddster wrote:

Deb, who put those pollies there? Who stood by while they plundered the country?

Was't it an apathetic, non-caring and unaware collection of Australian people?

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the people did based on fraudulent claims and policies, we should all do a charge back for item not as described 

[freakiness]

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@poddster wrote:

As the country is insolvant it would not be possible for it to make any payments from non existant funds. So if a person was reliant on payment from the country then they would not receive any.

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The country is not insolvent and there is no way the citizens are responsible for the national debt.