Debts, Bank & Credit Card Failures.....
 

I've noticed that a lot of people on this board are very adamant about the need to be debt free before the crisis unfolds. Now I've been hearing a lot about possible financial failures looming, so here is my question - if credit card companies start to fail in quick succession as well as banks in the up coming years, how feasible would it be to throw money down the rat hole of high credit card interest rates??

Re: Debts, Bank & Credit Card Failures.....
 

They wont just forgive that debt unless there is a TOTAL breakdown of society. In most cases, that debt will be sold to the highest bidder... Maybe even guido with a baseball bat.

Re: Debts, Bank & Credit Card Failures.....
 

Gotta agree with tech....... unless it all goes down the crapper...... the will find a way to protect thet debt monster.... that is the way they mantain control over the sheep...

I would pay it down.....but only the Bare mimnimum and push all possible cash to pm and preps.


T

Re: Debts, Bank & Credit Card Failures.....
 

Whether to do bare minimum or not depends on what it's costing you. The more it costs you, the more advantageous it is for you to pay it down quickly because minimum payments plus the unyielding principle over the long run just slow down your ability to prep and buy PMs.

Re: Debts, Bank & Credit Card Failures.....
 

I agree..... but I have one caveat:It would vary on how close you think we are to the end game.... there has been ALOT of buzz around here plus what I am seeing on CNBC that a MAJOR COLLASPE could be coming possibly in septmber of this eyear. that would be poised to wipeout anywhere near 40-80% of global markets.


If that prediction is even HALF RIGHT ........ the CC companies and the like can kiss my @$$!! I would be pushing as much money as I can into tangibles.

T

Re: Debts, Bank & Credit Card Failures.....
 

I believe they'll find a way to keep the debt alive. They changed the bankruptcy laws because they knew this was coming. However, they might do something to similar to what they did in Argentina and reduce the debt held by the borrower.

You have to figure that if this gets bad, a great many people simply won't be able to pay. When people can't pay, and everyday life is a financial struggle, people eventually give up on even trying to pay. Meeting their everyday needs will come first. A credit company can go after assets, if there are any, but if there are no markets for the assets, and people are barely getting by on their wages so that there's no recourse there, there's just not much there for the taking. If they do it to enough people, politicians will find themselves booted out of office by angry constituents if they don't undo some of the big business-biased laws. I suspect the credit companies would opt to settle for something over nothing and reduce the debt customers are liable for.

Re: Debts, Bank & Credit Card Failures.....
 

For me personally, the way I look at it is like this: I borrowed the money from them, so I owe it back to them under the terms of borrowing that I agreed to.

Even if TSHTF and I can't pay back immediately, I still owe it. Yes, I will certainly put my survival first before paying back debt, but that won't absolve me of responsibility, which only continues to grow as they add justifiable interest to my debt.

For me the only question is where to draw the line at any instant in time between paying back debt and prepping. I feel that I need to do both, and if TS doesn't HTF for two more years, then I've got time to do both. If I see it coming next September, then I'm going to weigh in more heavily on the side of prep and let the interest pile on.

Re: Debts, Bank & Credit Card Failures.....
 

I always had plans to pay off my house but it's looking like there isn't going to be enough time to get that done before things get bad. I've got to far to go than my income produces so getting it paid off fast isn't an option. I'm not upside down but that could change in a hurry as things get worse.