Write off you debts under £15K
Discussion
So every company offering credit is a large organisation that securitises its debt and sells it?
There are thousands of small business who offer loans, catalogues, vouchers and goods on credit who have to ensure that people can pay it back. Im one of them. Every initiative that gives people a means to get out of paying back money increases the cost of credit across the board. Risk has to have a price and if I have an increased risk of lending, either through defaults or legislation, then I will pass that on to my customers. You cant have it both ways.
There are thousands of small business who offer loans, catalogues, vouchers and goods on credit who have to ensure that people can pay it back. Im one of them. Every initiative that gives people a means to get out of paying back money increases the cost of credit across the board. Risk has to have a price and if I have an increased risk of lending, either through defaults or legislation, then I will pass that on to my customers. You cant have it both ways.
swerni said:
You're conveniently forgetting all the hardworking people who've been suckered into this mess, or who've done nothing wrong except retire at the wrong time and seen their pension pot turn into dust before their eyes.
Er, but those who have seen their pension pot turn to dust WERE investing in stocks and shares! Maybe they were too simple to read the small print, or thought they were putting their money into the hands of a magic money fairy, but everyone has a choice where they put their money!Can't say I have any sympathy for anyone who put their life into shares with their logic being "They've always gone up, so can never go down".
Edited by Cpn Jack Spanner on Sunday 29th March 12:24
thehawk said:
swerni said:
havoc said:
swerni said:
you see where this is going to lead.
No unsecured loans for under £15k.
Then all the tossers (see banking scam thread) will start moaning that it's not fair, the bank won't lend them any money.
It's called Karma
No. MOST people wouldn't dream of taking out a loan they couldn't afford, and would be horrified to have to default on a debt. But there are a few (increasing, but still I would hope a small minority) who DO take the piss...it is these that will abuse this rule the same way they've abused other rules.No unsecured loans for under £15k.
Then all the tossers (see banking scam thread) will start moaning that it's not fair, the bank won't lend them any money.
It's called Karma
And it is the 'most' group who will suffer as a result.
Try not to see the world in such black-and-white terms.
The main reason the economy is in the state that it is in right now is people borrowing money they can't really afford
Which is lending to people who think they are in a better situation than they actually are. How many people have borrowed money for a car, when they haven't needed too? How about a loan to pay for the holiday? or to pay for some clothes?
How about people realise they are not as rich as they are? Then save to afford? If you can afford to borrow money, then ask?
If you can't afford to run an expensive car, you buy an economical one. It is just the same principal.
By the same token, if you're going to lend money to someone and hope to get it back with interest, is it not a good idea to have a look at their pay cheques and make sure they earn what they claim? See that they are in stable employment, rather than picking up bits and pieces here and there between long bouts on the dole? Might even be worth asking them what they want the money for - a modest new car to get them to work, or a blow out holiday which they really can't afford. Go mad and perhaps even make sure that they do understand what they are getting themselves into and for how long, before you hand over the money!
As well we know, in the last few years the adverts have been positively encouraging people with no assets, unpredictable incomes and poor credit history, to borrow thousands for holidays and flash cars and to otherwise live beyond their means.
As well we know, in the last few years the adverts have been positively encouraging people with no assets, unpredictable incomes and poor credit history, to borrow thousands for holidays and flash cars and to otherwise live beyond their means.
AJS- said:
By the same token, if you're going to lend money to someone and hope to get it back with interest, is it not a good idea to have a look at their pay cheques and make sure they earn what they claim? See that they are in stable employment, rather than picking up bits and pieces here and there between long bouts on the dole? Might even be worth asking them what they want the money for - a modest new car to get them to work, or a blow out holiday which they really can't afford. Go mad and perhaps even make sure that they do understand what they are getting themselves into and for how long, before you hand over the money!
As well we know, in the last few years the adverts have been positively encouraging people with no assets, unpredictable incomes and poor credit history, to borrow thousands for holidays and flash cars and to otherwise live beyond their means.
Or just start locking them up for fraud?As well we know, in the last few years the adverts have been positively encouraging people with no assets, unpredictable incomes and poor credit history, to borrow thousands for holidays and flash cars and to otherwise live beyond their means.
AJS- said:
By the same token, if you're going to lend money to someone and hope to get it back with interest, is it not a good idea to have a look at their pay cheques and make sure they earn what they claim? See that they are in stable employment, rather than picking up bits and pieces here and there between long bouts on the dole? Might even be worth asking them what they want the money for - a modest new car to get them to work, or a blow out holiday which they really can't afford. Go mad and perhaps even make sure that they do understand what they are getting themselves into and for how long, before you hand over the money!
As well we know, in the last few years the adverts have been positively encouraging people with no assets, unpredictable incomes and poor credit history, to borrow thousands for holidays and flash cars and to otherwise live beyond their means.
All those things are under the responsible lending remit from the OFT. If you dont do them then you are increasing your risk anyway.As well we know, in the last few years the adverts have been positively encouraging people with no assets, unpredictable incomes and poor credit history, to borrow thousands for holidays and flash cars and to otherwise live beyond their means.
You seem to not know the difference between "cant pay" and "wont pay".
You still have to cover your risk. It's legal to invest your life savings in an ostrich farm and legal to offer such investments, but it's still up to the investor to make sure they get their money back.
Fraud would suggest they had no intention of paying the money back in the first place which, rightly, has a high burden of proof, and is not the same thing as being optimistic about your future earnings. And while it might get them locked up (at even more cost to the tax payer) it still wouldn't get the nice people at the YES! Finance their money back.
The fact of the matter is there are millions of pounds worth of bad debt out there and one way or another it's going to have to be written off because you can't reposess a decade of living beyond one's means, and you can't get money out of someone who has none.
It's more a question of writing it off in the most efficient way possible, and bankruptcy proceedings can be lengthy, hence costly, criminal proceedings even more so.
Fraud would suggest they had no intention of paying the money back in the first place which, rightly, has a high burden of proof, and is not the same thing as being optimistic about your future earnings. And while it might get them locked up (at even more cost to the tax payer) it still wouldn't get the nice people at the YES! Finance their money back.
The fact of the matter is there are millions of pounds worth of bad debt out there and one way or another it's going to have to be written off because you can't reposess a decade of living beyond one's means, and you can't get money out of someone who has none.
It's more a question of writing it off in the most efficient way possible, and bankruptcy proceedings can be lengthy, hence costly, criminal proceedings even more so.
samdale said:
Carpie said:
If you fall into this category:
Don't own a house, have not more than £300 in assets ( I am presuming they mean in the bank not including everything you own in the world) and have not more than £50 a month in 'disposable income' (which I presume means after paying for Sky, Sunny Delight and ciggies).
Then a .22 to the head would be more beneficial to the nation. Consider the organs given to the NHS as repayment of the loan.
This will just mean more people strive to meet these conditions (hiding money, deliberately losing their job) so they don't have to pay for the new Astra they couldn't afford but got anyway.
i've recently lost my job...Don't own a house, have not more than £300 in assets ( I am presuming they mean in the bank not including everything you own in the world) and have not more than £50 a month in 'disposable income' (which I presume means after paying for Sky, Sunny Delight and ciggies).
Then a .22 to the head would be more beneficial to the nation. Consider the organs given to the NHS as repayment of the loan.
This will just mean more people strive to meet these conditions (hiding money, deliberately losing their job) so they don't have to pay for the new Astra they couldn't afford but got anyway.
im in this catagory + i have a student loan to start paying back.
i can't afford my own car, i'm not borrowing any money for "the new astra"
and after paying for, erm, nothing i still don't have that disposable income, times are hard.
be careful who you brand in this catagory.
we're not all raking in thousands in benefits that your taxes are paying for.
[/b
kingforstereotyping]If you're not borrowing money as you say, then you don't fall into my stereotype of someone borrowing money they couldn't afford for something they don't need. Also I didn't mention 'thousands in benefits' or my taxes, so not sure where that came from.
[/b
kingfornotreadingpostcorrectly] 
AJS- said:
Lots of students still run up debts, especially those whose parents aren't in a position to offer much support. And yes, the banks will (or would) happily lend to students with no permanent income at all.
On the provision that it was paid off in full when they were earning over 15k a year, not written off...bazking69 said:
AJS- said:
Lots of students still run up debts, especially those whose parents aren't in a position to offer much support. And yes, the banks will (or would) happily lend to students with no permanent income at all.
On the provision that it was paid off in full when they were earning over 15k a year, not written off...Gassing Station | News, Politics & Economics | Top of Page | What's New | My Stuff