Should I get a bank loan and renege on it while I can?
Discussion
Credit Crunch and banks writing off billions of pounds all over the place. Just listened to the news on the radio HSBC profits are down (shame!) and they're allowing another £5 billion against bad debts.
Now I don't have any loans I've ever not paid, but it seems that there must be thousnads of people taking loans, not paying them back and being let off to some degree by the banks as they will never regain the money. I read about people in the US walking away from houses where the price has dropped 20% or more below a mortgage they can't afford, the rationale being that if they stuck with the loan, the bank will be ok, but won't be there to help them out in retirement or when they want to move if they have negative equity, so take a credit record hit for 5 years or so and then start again.
Now I'm sure I won't understand the details of this or how global money markets interlink (in fact I suspect it's so complex now that no-one does properly), but it does seem to be that there are those of us who pay money into banks and financial services fulfilling all obligations and those who take money out and then don't fulfill their obligations.
At the end of the day, where do banks get the money from that they use to "write-off" loans if not from their good customers who stick with their contracts and so end up paying for the banks bad judgements?
Ok - chill pill time.
Now I don't have any loans I've ever not paid, but it seems that there must be thousnads of people taking loans, not paying them back and being let off to some degree by the banks as they will never regain the money. I read about people in the US walking away from houses where the price has dropped 20% or more below a mortgage they can't afford, the rationale being that if they stuck with the loan, the bank will be ok, but won't be there to help them out in retirement or when they want to move if they have negative equity, so take a credit record hit for 5 years or so and then start again.
Now I'm sure I won't understand the details of this or how global money markets interlink (in fact I suspect it's so complex now that no-one does properly), but it does seem to be that there are those of us who pay money into banks and financial services fulfilling all obligations and those who take money out and then don't fulfill their obligations.
At the end of the day, where do banks get the money from that they use to "write-off" loans if not from their good customers who stick with their contracts and so end up paying for the banks bad judgements?
Ok - chill pill time.
theoretically it is extremely straightforward to borrow and apply, borrow and apply,borrow and apply until you can borrow no more, and then declare bankruptcy.
this should net you minimum 50k, more like 100k if you've got a decent score/income.
as long as going bankrupt does not affect your job, you can use a basic bank account for pretty much everything (except guaranteeing cheques) and you get to keep your house, you can sell all your other assets and when they ask where the money is, you say you have a gambling/drink problem and it's all gone.
you will literally untouchable, and after the 12 months period you'll be discharged and free to build up your score again, which should be back to normal in 3-5 years depending on whether you have a mortgage.
so, you can make a tidy sum, very easily indeed. It would be grossly immoral and pretty despicable, but it can and does happen in Britain on a daily basis
this should net you minimum 50k, more like 100k if you've got a decent score/income.
as long as going bankrupt does not affect your job, you can use a basic bank account for pretty much everything (except guaranteeing cheques) and you get to keep your house, you can sell all your other assets and when they ask where the money is, you say you have a gambling/drink problem and it's all gone.
you will literally untouchable, and after the 12 months period you'll be discharged and free to build up your score again, which should be back to normal in 3-5 years depending on whether you have a mortgage.
so, you can make a tidy sum, very easily indeed. It would be grossly immoral and pretty despicable, but it can and does happen in Britain on a daily basis
dibbers006 said:
I don't know, but I'm looking very carefully at buying a sofa on 0% credit from somewhere which, fingers crossed, goes down the pan
Your debt will be with a finance company, not the retailer. Firms like GE Capital supply a huge proportion of retail finance. You may be a while waiting for GE to go bust!minimax said:
Neil_H said:
dibbers006 said:
I don't know, but I'm looking very carefully at buying a sofa on 0% credit from somewhere which, fingers crossed, goes down the pan
Why? 
gingerpaul said:
minimax said:
Neil_H said:
dibbers006 said:
I don't know, but I'm looking very carefully at buying a sofa on 0% credit from somewhere which, fingers crossed, goes down the pan
Why? It was a rhetorical question, I have never reneged on a loan or similar agreement and would never plan to.
There must be a vast number of people however who do so and walk away from the debt having enjoyed every last penny of it - ultimately at the expense of those of us who play by the rules. It seems that every week there is some bank who announce another few billion against bad debt, so somewhere there are people who made a mistake and got a load of free money that the rest of us are paying for in some way.
I know this has always happened to some degree, but currently it seems to be a way of life for the banks too. If they can't recover the money from the debtors (which mainly they can't) write it off and charge more in the future. Pisses me off.
There must be a vast number of people however who do so and walk away from the debt having enjoyed every last penny of it - ultimately at the expense of those of us who play by the rules. It seems that every week there is some bank who announce another few billion against bad debt, so somewhere there are people who made a mistake and got a load of free money that the rest of us are paying for in some way.
I know this has always happened to some degree, but currently it seems to be a way of life for the banks too. If they can't recover the money from the debtors (which mainly they can't) write it off and charge more in the future. Pisses me off.
minimax said:
theoretically it is extremely straightforward to borrow and apply, borrow and apply,borrow and apply until you can borrow no more, and then declare bankruptcy.
this should net you minimum 50k, more like 100k if you've got a decent score/income.
as long as going bankrupt does not affect your job, you can use a basic bank account for pretty much everything (except guaranteeing cheques) and you get to keep your house, you can sell all your other assets and when they ask where the money is, you say you have a gambling/drink problem and it's all gone.
you will literally untouchable, and after the 12 months period you'll be discharged and free to build up your score again, which should be back to normal in 3-5 years depending on whether you have a mortgage.
so, you can make a tidy sum, very easily indeed. It would be grossly immoral and pretty despicable, but it can and does happen in Britain on a daily basis
I don't know who makes me angrier - the scummers who do this sort of thing, or the fthis should net you minimum 50k, more like 100k if you've got a decent score/income.
as long as going bankrupt does not affect your job, you can use a basic bank account for pretty much everything (except guaranteeing cheques) and you get to keep your house, you can sell all your other assets and when they ask where the money is, you say you have a gambling/drink problem and it's all gone.
you will literally untouchable, and after the 12 months period you'll be discharged and free to build up your score again, which should be back to normal in 3-5 years depending on whether you have a mortgage.
so, you can make a tidy sum, very easily indeed. It would be grossly immoral and pretty despicable, but it can and does happen in Britain on a daily basis
kwit banks who allow this sort of thing to happen!!!!minimax said:
theoretically it is extremely straightforward to borrow and apply, borrow and apply,borrow and apply until you can borrow no more, and then declare bankruptcy.
this should net you minimum 50k, more like 100k if you've got a decent score/income.
as long as going bankrupt does not affect your job, you can use a basic bank account for pretty much everything (except guaranteeing cheques) and you get to keep your house, you can sell all your other assets and when they ask where the money is, you say you have a gambling/drink problem and it's all gone.
you will literally untouchable, and after the 12 months period you'll be discharged and free to build up your score again, which should be back to normal in 3-5 years depending on whether you have a mortgage.
so, you can make a tidy sum, very easily indeed. It would be grossly immoral and pretty despicable, but it can and does happen in Britain on a daily basis
You have to be very careful if you take this course and be seen to be 'trying' to pay back the loans and also not to have been taking out credit with the intention to default.this should net you minimum 50k, more like 100k if you've got a decent score/income.
as long as going bankrupt does not affect your job, you can use a basic bank account for pretty much everything (except guaranteeing cheques) and you get to keep your house, you can sell all your other assets and when they ask where the money is, you say you have a gambling/drink problem and it's all gone.
you will literally untouchable, and after the 12 months period you'll be discharged and free to build up your score again, which should be back to normal in 3-5 years depending on whether you have a mortgage.
so, you can make a tidy sum, very easily indeed. It would be grossly immoral and pretty despicable, but it can and does happen in Britain on a daily basis
Of course it's very simple to do this with a little organisation. Add to this a new business that sadly goes to the wall within it's first year and you could easily clear enough to go and spend 6 years in the sun living a life of luxury while your credit history repairs itself.
minimax said:
gingerpaul said:
minimax said:
Neil_H said:
dibbers006 said:
I don't know, but I'm looking very carefully at buying a sofa on 0% credit from somewhere which, fingers crossed, goes down the pan
Why? gingerpaul said:
minimax said:
Neil_H said:
dibbers006 said:
I don't know, but I'm looking very carefully at buying a sofa on 0% credit from somewhere which, fingers crossed, goes down the pan
Why? Plus if you buy on credit then the finance company can be held liable should the sofa be faulty even after the supplier goes bust.
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