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Pay off debts?

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According to the news this morning Cameron was saying 'YES' they should. It then seems part of today's speech was suddenly re-written due to fears he would appear to be out-of-touch with ordinary voters. What is an 'ordinary' voter ?

 

Now then... what would happen if we did pay off all our credit card debts/mortgages etc? Surely the banks etc make a huge wad in interest / late payment charges etc from these loans and credit card people.

 

If we all paid them off then wouldn't the banks be loosing out in a way. Those of us without suitcases of money stashed under our beds would presumably withdraw our savings or money from our banks to pay off our debts. So no debts but no savings or money in their bank either.

 

With the economic climate being as it is people are possibly using credit cards as maybe they can't afford to pay for things outright so pay monthly instead plus interest unless it is one of the many 0% interest cards available.

 

Same with loans, interest rates are low at the moment so people are increasing their mortgages or borrowing more money if they can. False sense of security though as if the interest rates shoot up they are buggered.

 

We have thought of trying to pay our mortgage off using savings and cashing in our naff endowment etc but then you think 'hang on a sec we wont owe anything but we wont have any money left either' so if we loose our jobs we'll be buggered or if we ever need to borrow some money it may be hard to get credit with no mortgage.

 

Swings and roundabouts really and I'm sort of split both ways so I will say YES and NO for now and I will sleep on it.

 

In an ideal world it would be great to not owe anyone anything at all though eh?

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Call Me Dave was talking out of his nether regions as usual. Being a millionaire he doesn't really comprehend what owing money means. He thinks a debt is just an amount of money you owe someone but haven't got around to paying out of your stash of wealth just yet. We're doomed I tell ye, DOOMED!!!! :shock: :shock: :shock: :shock:

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You are probably right there Asp.

 

I guess it is a little easier to "reject pessimism" and "turn this time of challenge into a time of opportunity" rather than to be "paralysed by gloom and fear" when you are mega rich and have a well paid job.

 

I do rather like a challenge though and I'm not partuculary fearful of things (apart from motorways and spiders of course). Pessimism... mmm maybe I do need to work on that one though sometimes :wink:

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People don't pay off their debts because they enjoy paying interest to the banks, they don't pay off their debts because they can't afford to. :wink: :wink:

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In my Sunday School mode, debt; drink; (and illicit sex to spice it up a bit) can be evils but my experience in the university of life tells me that nothing will alter, as human nature is unchanging and the relatively few will still cause problems and get the rest a bad name.

 

How old is the expression "neither a borrower or lender be"?

 

Just thought I'd mention that I have given up one of the evil three, but not from choice.

 

Happy days

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Which is surely the nub of the problem - taking on debts they can't afford? :unsure: :unsure:

 

 

It certainly is a problem for the person with the debt, but that doesn't make it right for millionaire Call me Dave to pontificate as if its as easy as taking the money out of one of your savings accounts and paying off your credit card. Some people need to take on debt at times to get through life. Call me Dave, in common with most politicians these days, ought to think before he puts his foot in his mouth in my opinion. :evil: :evil: :evil:

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On one hand encouraging people to pay off their debts while the other hand forces students to take on excessive debt for their further education. Hypocritical really dont you think.

Ian

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People don't pay off their debts because they enjoy paying interest to the banks, they don't pay off their debts because they can't afford to. :wink: :wink:

 

Which is surely the nub of the problem - taking on debts they can't afford? :unsure: :unsure:

 

Obs,

 

why do you assume that they cannot afford them? I have a mortgage which I can afford and I have taken out loans in the past which I could afford.......

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As there are few "jobs for life" nowadays Baz, few can guarantee the repayment of a 25yr mortgage, assuming their wage can support the monthly repayments in the first place. Many are now struggling to pay inflated energy bills, food bills etc, especially when suffering wage cuts/freezes or redundancy. So I guess there are quite a few folk out there who can't afford to take on debt. :( So, as in time gone by, you have to do without and cut your cloth according to your means. :(

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