-- 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? 

[the_great_she_elephant]

The question posed in the OP is based on a fundamental misconception, that debt is somehow bad for the economy, when in fact it is what helps to keep the economy afloat. If companies or individuals could afford to clear all their debt within the next month then they wouldn't have needed to borrow it in the first place - and if nobody was ever permitted to buy  anything they could not afford to pay for outright then there would be  no call for credit providers, the banking industry would collapse and  nobody would have anywhere to deposit their savings - let alone receive interest on them

 If there were no banks or building societies, then nobody would be able to take out a mortgage, only a lucky few would ever manage to squirrel away under their mattresses enough money to buy a home and the bottom would fall out of the housing market . The same would apply to the market for cars, caravans, televisions and other expensive goods. How many jobs would that cost?

The question should not be about debt per se, but about  the ability to service that debt; and servicing a debt means being able to honour the terms agreed to, not being suddenly able to clear it all within a month.

[*mrgrizz*]

i am still waiting for a answer as to why the loans would be called in

come on i answered the question honestly

[monman12]

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"The country is not insolvent and there is no way the citizens are responsible for the national debt." Do you think if all debts were called in (government and private sector) they could be paid?

I would consider the phrase:

"government of the people, by the people, for the people",  then the well used term "debt to GDP ratio", and finally would you have your personal finances reflect the same (pro-rata) figures we currently have?

The private sector is responsible for 80.5 and 75.0 per cent of  Australia's  gross and net foreign debt respectively. I will let you research the term "private sector"

[poddster]

Freaki,

The country is not insolvent................yet, debt continues to grow at an alarming rate, if it is not halted insolvency will be reached.

At what point down the track is the Crossing of the Rubicon?

TGSE

Debt sinks the economy

Mr Grizz

Let me answer that with a question.

If you were a moneylender and you knew that the money you lent had no chance of ever being repaid, would it not make sense to call in the loan when the assets of the person you lent to were of less value than the loan?

Or would you continue to fund an ever increasing without the ever being repaid?

[the_great_she_elephant]

TGSE

Debt sinks the economy

Debt which cannot be serviced sinks the country.  The financial stability of this country is based on the premise of an expanding economy. How can our econonomy expand if no-one is able to borrow money?  Where are manufacturers going to get the capital to expand their businesses? How are mining entrepreneurs going to finance their exploration? How is the housing market going to flourish if no-one can take out a mortgage?

[poddster]

TGSE

If you were a moneylender and you knew that the money you lent had no chance of ever being repaid, would it not make sense to call in the loan when the assets of the person you lent to were of less value than the loan?

Or would you continue to fund an ever increasing without the ever being repaid?

[the_great_she_elephant]

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@poddster wrote:

TGSE

If you were a moneylender and you knew that the money you lent had no chance of ever being repaid, would it not make sense to call in the loan when the assets of the person you lent to were of less value than the loan?

Or would you continue to fund an ever increasing without the ever being repaid?

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If the money could not be paid it would be an unservicable loan as opposed to an ordinary loan - on which my business depends.

How does this relate in any way to your OP? You asked, specifically: 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?  Unless you are assuming that posters here have loans which they cannot service then it's a  pretty meaningless question, isn't it? 

Anyone with a mortgage of over $100,000, say, would be struggling to pay it off within a month - are you sugggesting  this means  they are all hovering on the verge of bankurptcy?

[debra9275]

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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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they were voted in by the community who belived in their election promises & expected them to do good on behalf of the WHOLE country

what do you suggest we do?? overthrow the govt??

hey, maybe that's not such a bad idea  

no, australians aren't apathetic, non caring and unaware. You can tell by all the anger around ATM

[freakiness]

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@monman12 wrote:

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"The country is not insolvent and there is no way the citizens are responsible for the national debt." Do you think if all debts were called in (government and private sector) they could be paid?

I would consider the phrase:

"government of the people, by the people, for the people",  then the well used term "debt to GDP ratio", and finally would you have your personal finances reflect the same (pro-rata) figures we currently have?

The private sector is responsible for 80.5 and 75.0 per cent of  Australia's  gross and net foreign debt respectively. I will let you research the term "private sector"

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Just for you Monman, I'll rephrase that to the citizens are not responsible for the government debt.

[poddster]

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@the_great_she_elephant wrote:

If the money could not be paid it would be an unservicable loan as opposed to an ordinary loan

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Now you are getting the gist 🙂

Ever increasing debt will become unservicable.