Tuesday: #5 is the consumer...racking up debt....


What makes me wonder about this one.... we say it was one of the main problems, but I hear Bam saying that one of the main ways we are going to recover is to get debt flowing again????

Every financial advice show I see or hear will tell you, as an individual it is best to pay only in cash, the only debt "allowed" is for your house, even a car should be paid for with saved cash!

Now the big stimulus is to get lenders lending and debtors debiting again??? I am truly concerned about this democratic 'new deal'....

Czuch: Nope. That is not true. The truth is to be fully aware before you make any purchase based on credit. Not only taking note of the interest rates, but of the small print as well. This applies to all purchases on credit including houses.

2) know your rights. EG some stores over here will say that they need a receipt as proof of purchase before exchanging faulty equipment. But the law states differently, something I have used in the exchange of faulty goods many times and even made them get the manager down if they try to argue.

3) You are by rights allowed to cross out terms in a contract if you feel they are unfair before you sign, it might mean that the other side might not sign. But better that then signing a contract that is against your interests and lead to you ending up in dooo dooo at the end of the day.

If the lending is sensible then what is your problem with it? No more 100% mortgages, no more stupid rates of interest, and the banks to be responsible and not to blindly invest money in dodgy schemes.

(V): No more 100% mortgages,

I have two 100% mortgages.... whats wrong with them?

Czuch: now havent your last 2 posts contradicted themselves....in one you say pay cash and in the other you have massive mortgages.

I paid cash for my home, not mortgages here and if I wasn a new "anything" I save for it LOL...so I agree with you there.....but your statements are confusing, or rather contradictory.

Bernice: Read closer... i said except for mortgages, those for most people, are the only credit they should use.

Paying cash for a new home would take most people so long to save for they would never have a new home, one reason is that you have to pay rent as well as try to save for a place to live, which makes no sense, when you can just have no rent payment and pay for a home mortgage. But most other things dont work quite the same way.

Czuch: Also, a home is not only a place to live, and for only a bit more than renting, but it also increases in value over time, not to mention, what bank is going to lend you 200k to put into the stock market or anything else for that matter? Its the best investment that a loan can buy!

Czuch: Having two 100% mortgages... what happens if you lose your job? We are in a recession.

With negative equity

(V): I will move to the UK and let you take care of me

Czuch: If they allow you in, you'll have to show reason to be able to stay for ever, otherwise you are just another tourist.