Wipe slate clean with debt amnesty

gauly

There is the most fantasticly bonkers letter in today's Times:
http://www.timesonline.co.uk/tol/comment/letters/article5890420.ece

Here's a quote:
"Rather than throw yet more money at banks, which have proven themselves increasingly unworthy of responsibility for our finances, a more sensible action would be for the Government to negotiate an amnesty on all personal debt and wipe the slate clean."

I can't decide if it's real or just a wind up - what do you think? And is there anyone out there who agrees with Ms Enock? Probably MoneySavingExpert isn't the place to look, but I would be intrigued to find anyone who agrees with her cunnung plan!

Graham_Devon

gauly wrote: »

There is the most fantasticly bonkers letter in today's Times:
http://www.timesonline.co.uk/tol/comment/letters/article5890420.ece

Here's a quote:
"Rather than throw yet more money at banks, which have proven themselves increasingly unworthy of responsibility for our finances, a more sensible action would be for the Government to negotiate an amnesty on all personal debt and wipe the slate clean."

I can't decide if it's real or just a wind up - what do you think? And is there anyone out there who agrees with Ms Enock? Probably MoneySavingExpert isn't the place to look, but I would be intrigued to find anyone who agrees with her cunnung plan!

I think you would find most (ok, about half) of the nation, if every single person was asked, would agree with Ms Enock.

lostinrates

But the possibilty to 'wipe off debt' does exist for many many people, by repaying their debts with their assets, really 'wiping the slate clean' and starting again. Its obviously not the right choice for very many, but the oppertunity exists, legitimately, already.

Dan:_4

lol. I would agree - I currently have around 28K credit card cash 'stoozing'. It would be nice if I could keep it.

gauly

OK, that was quicker than I thought. So we have a yes vote for the Enock plan from Dan!! But are you sure it's worth bankrupting the who economy and causing decades of finacial crises just so you can keep £28K?

lostinrates

gauly wrote: »

OK, that was quicker than I thought. So we have a yes vote for the Enock plan from Dan!! But are you sure it's worth bankrupting the who economy and causing decades of finacial crises just so you can keep £28K?

I think Dan was smilingly saying it would be good for him without advocating it as a viable plan! But I could be wrong!

gauly

lostinrates wrote: »

I think Dan was smilinly saying it would be good for him without advocating it as a viable plan! But I could be wrong!

Actually, I think Dan was probably joking. But if Gordon does use this plan to win the next election I'm going to be quite jealous of him!

Dan:_4

Thanks LIR. And your right, I wouldn't want this to happen with the amount of general debt out there. OK, I have a very high amount of unsecured debt, but I also could repay it tomorrow.

I can't see how this will help the housing market. Surly if this was to happen, it would be the end of every single bank in the UK. There will be no money to lend whatsoever, mortgage approvals will be 0 and houses will be worthless.

Graham_Devon

Dan: wrote: »

Thanks LIR. And your right, I wouldn't want this to happen with the amount of general debt out there. OK, I have a very high amount of unsecured debt, but I also could repay it tomorrow.

I can't see how this will help the housing market. Surly if this was to happen, it would be the end of every single bank in the UK. There will be no money to lend whatsoever, mortgage approvals will be 0 and houses will be worthless.

I doubt personal debt would include houses.

In my mind, personal debt means personal loans, credit cards, overdrafts etc, maybe even car loans.

But I'd suggest it means unsecured debts. Can't see it happening myself. It would seriously punch everyone very hard who had done everything they could to pay off their debts instead of just going bankrupt etc.

A much fairer way to do this, should they really have to (I dont think they ever would and also dont agree with it) is literally to send everyone over 18 in the UK a cheque for a grand, five grand, ten grand, whatever they think would suffice.

People could then spend, wipe of debts (closer to then being able to spend) or hoard it. But at least everyone gets a slice of the pie instead of just those with unsecured debt.

iolanthe07

It hardly rewards thrift and responsibility, either.

ninky_2

I think wiping of the debts of those that genuinely have no assets yet have a lot of debt is a good idea. It's slowly what is happening anyway through IVA / bankruptcy as we realise financial institutions have given debt to those with no chance of paying it off or have basically had to sell their entire future working life to clear it.

There will not be a "run on the banks" as many fear, because unlike the last time this happened, the vast majority of account holders don't have anything to draw out. When the run on the banks happened, bank accounts were only available to the wealthy. This time the banks have emptied the coffers through their own stupidity and greed.