At what point would you throw the towel in ?

Tr@cker

I can just about repay my debts from disposable income after all other bills and a little pocket money. But meladdo across the road racked up 52k debts (quite flagrantly )and declared himself bankrupt-new start debts written off and in 9 months time he'll be discharged.
I know a lot on here finish their threads with 'proud to be dealing with my debts' but im asking myself: Who's the mug ?
-When people like him (and also countless businessmen who transfer their assets to there wives) are taking the p1ss!

Snaggles

He wont be free in 9 months though, it will have a knock on effect for at least the next 6 years, and possibly beyond. I know what you mean though, it IS disheartening when you see people who seemingly run up huge debts with the intention of declaring themselves bankrupt, although if they think you have purposely done this, you are much less likely to get a quick discharge I believe.

ZTD

This is a bit like stealing from shops. you probably won't get caught on 1 given occasion, but eventually you will. It's slightly worse than that for him, because he will be a bankrupt for the rest of his life.

I know I've said this before, but it's probably worth repeating. Credit comes in cycles. There are easy times, like now - like the 1920's, where money is flung at anybody. Then there are hard times, like the 1930's and the 1970's, where you dress in your Sunday best to go ask the bank manager for a small loan. If you do actually get it (possible, rather than likely), you need to supply names of guarantors that will pay it off if you don't.

In those circumstances, how much of an advantage are bankrupts?

Credit has tightened recently - I've seen anecdotal evidence on these boards as well as bigger economic indicators - so where do you think we're heading?

Snaggles

I work as a credit underwriter, and can definitely confirm what you are saying ZTD. The economic climate is changing, I have seen the effect of this even over just the last 2 years, and the company I work for (HUGE) is certainly becoming more cautious in terms of lending criteria.

tomterm8

Today, for the first time in almost a decade, the bank of england has failed to keep us within the economic target for inflation.

There are indications of tough times ahead.

deliciosa

Never. Even if I had to starve, I would never, ever throw the towel in. My dignity is worth more.

in_debt_again_but_dealing_with_it

I think that is it deliciosa, its ultimately down to self-respect and dignity. Personally I couldn't throw the towel in a this point (while still able to repay, even if it is slowly - not dissing those who have taken the bankruptcy route). The debt is my responsibility and I will repay it!!

ZTD

Snaggles wrote: »

I work as a credit underwriter,

Do you? Never knew that...

Snaggles wrote: »

and can definitely confirm what you are saying ZTD.

:rotfl:

Snaggles wrote: »

The economic climate is changing, I have seen the effect of this even over just the last 2 years, and the company I work for (HUGE) is certainly becoming more cautious in terms of lending criteria.

Well the signs for a credit contraction (banks becoming less willing to lend) have been reasonable for some time - notably the inverted yield curve (cause or effect ), but this is very useful information (at least to me) - you don't get lending criteria expressed as a stat anywhere. I do like anecdotal evidence...

Of course if the government fails to keep borrowing costs down and triggers credit revulsion (people becoming less willing to borrow) then things will get really "interesting".

Bankrupts may find it very hard, but no matter what happens, people who have found the secret of living well with not much money are going to have it easier.

My...full of the joys of spring aren't I? :rotfl: :A

Skint_Catt

Interest rates are predicted to rise next month - I think they might keep going for a bit!

ZTD

There is a point where bankruptcy becomes the only option, but I feel you'll only know that point when you get there.

Some people choose bankruptcy as an option when there is hope for some of the other options, but that is their decision. I think of bankruptcy as a bit like having a tattoo. Often an easy decision to make, but the consequences are not fully known at the time, and it may be some years before they make themselves known.

Storm

Definitely agree with ZTD on the cycles within economics - things have been so 'good' for quite a while now with low interest rates etc, and there are reports virtually every week about the high level of debt in the UK and an increase in people on DMPs, IVAs & going BR. My long-term plan is to try and sit it out - pay off the debts, start saving & wait until I can afford a mortgage!

As for the OP - yes, it can be very frustrating when you see people blatantly abusing the system, but unfortunately there will always be some in any system going (the UK benefits one is a prime example!), and I'm a firm believer in karma - it will bite you back at some point!

p.s. if anyone from the BR board looks over here, please don't think we're talking about you guys personally, rather those that abuse the system