Preparing for what?

[Reality Jones]

(5 January 2012, 18:23)bigpaul Wrote: a lot of the American sites bang on about clearing debts, in a great cataclismical event i guess all bets are off but i suppose it depends on what "the event" is, it could be something more low key like an economic collapse, in that event if you've cleared all your debts then you will obviously better off than some people!

But if I'm in debt and the economy collapses how is that gonna make me worse off?? (Sorry if I'm being really stupid here BP!)

[NorthernRaider]

(5 January 2012, 18:17)Reality Jones Wrote: Ok. This is me having a blonde moment.

Why is it so important to be debt free in case TSHTF?
Am I missing something??

It stops the greedy b'stards from seizing your home for trivial debts, in the US for example councils can and do seize homes off people who cant pay their version of the council tax. In the UK banks etc could still demand you pay your mortgage even though the rest of the national infrastructure has collapsed.

[bigpaul]

(5 January 2012, 18:37)NorthernRaider Wrote: In the UK banks etc could still demand you pay your mortgage even though the rest of the national infrastructure has collapsed.

ditto credit cards!

[Sphinx]

(5 January 2012, 18:47)bigpaul Wrote:

(5 January 2012, 18:37)NorthernRaider Wrote: In the UK banks etc could still demand you pay your mortgage even though the rest of the national infrastructure has collapsed.

ditto credit cards!

And loans and overdrafts, the banks can demand you pay in full at any time. A handy piece of smallprint very few people read.

[bigpaul]

back in the late 80's i was trying to set up a small self employed business, credit card company was hounding me for a miserable £1,000 debt! so since then i have made sure i am never in debt, bills are paid the same day i receive them, and i pay off my credit card each month in full.

[grumpy old man]

don't worry about debt it's their money let them worry!!!!
the only debt's that can be collected or prison is tax or fine's rent you can be evicted for and ccj's or a joke just show the judge you income's a little bit bigger than out goings and you laughing a £1 a week threated with bankrupcy laugh a gain the creditor knows they get nothing.
the great a*** h*** mr blair made it that easy for people to walk away from debt the countries f****d,
all other debts can't be enforced if a debt collector ask you to pay say no if they ask again it's harrasment and report to office of fair trade because every debt collection company needs a credit licence and cost £1,500 and don't wont to loss it.
i know this as it's my job to collect the debt and what a pain in the arss that is
just one other thing some debt collector work out side the law as no money in means no pay
so be carefull who you take money off and be happy?

[bigpaul]

when i left home to get married (the 1st time) my father said to me: dont get into debt, if you want something save up for it. so i've tried to live by that or a modern version of it, nothing goes on my credit card that i cant afford to pay off at the end of the month, normal house expenses i use either cash or a debit card, bills are paid by cheque as soon as i receive them (that way i dont put them somewhere and forget about them), we havent got any debts(full stop) and i reckon if i havent got any debts then i dont get hassled by debt collectors or banks, i'm all for an easy life

[Skean Dhude]

The general rule of

if Money In > Money Out then bliss
If Money In = Money Out then worry
If Money In < Money Out then disaster

It is the same for individuals, companies and it should be governments but they can make their own rules and get us all into debt. It should be illegal.

[bigpaul]

its a bit like our allotment society, they have spent more money than they have coming in! dont know how you spend more than you have but they have, when i was an office manager(way, way back) we had to balance the books each month, this is something that seems to be beyond governments and the EU

[Scythe13]

If you are out of debt, life is just easier. That's the best way to look at it.

If there is a HUGE financial collapse, then it would be great, provided all the computer systems were destroyed (student loan good bye!!!). If that were the case, LOADS of debt would be a good thing!!!

The odds of that are very low. So it's easier to be out of debt.

If the banks (or whoever you owe money to) panics at the thought of a financial collapse, like they did in America, they will send in the debt collectors and the alike. The last thing you want is to be getting everything ready to bug out (because you saw the same financial collapse coming) and then find 5 big guys standing at your door waiting to take everything you have, including your BoB.

So it would seem that we are all preparing for a financial collapse. Or is it just the effect a financial collapse would have on society?