Irresponsible lending

jonesMUFCforever

buz12 wrote: »

Thanks, for your time and honesty!

I'll take this one on the chin..

Thank you - now you make sense. You could get a card with a huge limit but that does not mean you have to spend it.
:beer:

eschaton

buz12 wrote: »

Thanks, for your time and honesty!

I'll take this one on the chin..

You are a disgrace to these boards acting like that, you should be ashamed of yourself

Spamfree_2

Nobody forces you to take the basket to the checkout and put the credit card in the machine. It's that simple!

izools

Wow, what a non-troll.

Respect to you buz12 :beer:

Although, no fun without a fight

buz12

Haha, I didn't post for a fight, I wanted honest opinions. Which you kindly offered. We all need bringing down to earth from time to time.

When I look back on the dark days of debt I do feel like I was just being dragged further in, but you guys are right. I didn't have to spend it and there is no one else to blame.

I'll leave the past behind me

Thanks again for your comments

izools

There are so many people in this world that would have a lot to learn from you, buz12, bloody good on ya :beer:

sharpy2010

And I SOOOO wanted to post a rude response, but as I got nearer and nearer the end of the thread, it became less and less appropriate... :-((!!

Anthorn

Here's an alternative viewpoint.

Let's consider the stock market crash of 1929: From 1926 to 1929 the American stock market rose almost 400% fuelled by loans to investors to buy stocks. The loans were so large that they could not possibly be repaid if the stocks could not be sold at a profit. The worst happened and the market crashed!

Let's consider the 2008 banking crisis: That started because people were being loaned large amounts of money to buy homes mostly for resale which they could not possibly pay back if they could not sell those homes for a profit. The bubble burst and the banks went bust!

Does anyone see a pattern here?

Let's look through these forums and see how many threads we can find where people have been given huge credit limits they could not possibly pay back if they used the whole of that credit facility. Some of them used that credit facility and ended up defaulting!

On the basis of the above I'd say that no-one can deny that there is irresponsible lending! I can remember a time back in the hire purchase days when the ability to pay was calculated as a third of disposable income. Sadly, those days are now gone!

RobertoMoir

Anthorn wrote: »

On the basis of the above I'd say that no-one can deny that there is irresponsible lending!

I don't think a sensible person would deny it.

It's just that, well... if your credit card lender offers you a £15k increase on your credit ceiling, that may well be "irresponsible lending", but actually spending it requires "irresponsible borrowing". A credit limit is a limit, not a target.

It takes two to tango.

callum9999

Anthorn wrote: »

Here's an alternative viewpoint.

Let's consider the stock market crash of 1929: From 1926 to 1929 the American stock market rose almost 400% fuelled by loans to investors to buy stocks. The loans were so large that they could not possibly be repaid if the stocks could not be sold at a profit. The worst happened and the market crashed!

Let's consider the 2008 banking crisis: That started because people were being loaned large amounts of money to buy homes mostly for resale which they could not possibly pay back if they could not sell those homes for a profit. The bubble burst and the banks went bust!

Does anyone see a pattern here?

Let's look through these forums and see how many threads we can find where people have been given huge credit limits they could not possibly pay back if they used the whole of that credit facility. Some of them used that credit facility and ended up defaulting!

On the basis of the above I'd say that no-one can deny that there is irresponsible lending! I can remember a time back in the hire purchase days when the ability to pay was calculated as a third of disposable income. Sadly, those days are now gone!

That's a rather simplistic view of the issue. You don't remotely need to sell the house at a profit to pay off a mortgage. Yes, it's bad for you personally if you can't, but it shouldn't stop you from paying it all back - mortgage payments take the place of rent payments after all, and most people can make rent payments despite getting nothing tangible in return (obviously they get use of the house - I mean something they now own).