On Debt

[bigpaul]

(2 November 2015, 17:22)Midnitemo Wrote: I believe in prepping but the end is not a surefire thing in my lifetime

got a crystal ball have you? no one knows the future, "better to be safe than sorry", as we keep saying its a form of insurance, we don't want it to happen but at least we are covered when it does.

[Mortblanc]

One of the things that has been consistent over the ages is that at the end of any event the banking industry will come out intact.

That is partly due to banking being one of the first international industries rising up out of the "Dark Ages". From the very start of the banking industry they had built in failsafe systems to insure their survival and the survival of their assets.

The surviving banks will buy out the failing banks and that includes the debts owed to the failing banks.

Over here, in the middle of the banking and real estate market crash not only did the banks repossess the homes of those that could not pay, they left those homes empty and abandoned as a sign that they were willing to turn nonpayers out on the exact opposite principle that "If I can not get mine they can not get theirs".

Many people had their homes auctioned off, for one penny on the dollar, while they watched from the curb.

It was much the same during the Great Depression of the 1930s. Total collapse of the economy but mortgages and taxes were still due.

Property taxes are the last thing most over here worry about. TPTB must usually wait for 5-10 years before they auction off property tax delinquencies or offer land for sale due to nonpayment. But eventually they will get their money.

The one truth that everyone should acknowledge is just because one part of the system collapses and you lose your job does not mean the entire system goes down. The banking and tax collection structure, in one form or another, will survive anything the world can throw at them.

Even your romantic, self sufficient, idyllic, medieval serfs and villains paid rents and taxes.

[Steve]

Spot on, Mort. TPTB will survive, the rich will survive, and the rest of us will pay them or die trying. People who look forward to the crash expecting to get a bigger share of what's left are kidding themselves - if they can't do well now, when life is easy, they won't do well later when it's hard.

Pay your debts off, then try to build your wealth in things it is hard for them to tax away from you.

[iaaems]

When I was very young - a long time ago - I was persuaded that it was a good 'policy' to try and hold on to at least sixpence in every pound because "you never know when you are likely to need it".
This advice came from a person who had lived through two 'world wars'.
It is the principle of Sound Money.
The other thing that evolved was the difference between 'want' and 'need'. In essence you should live within your means or sort out the priorities - get what you need first and then give some thought to what you want later.
Also the need to get out of debt became number one priority and I achieved this some while ago.
My only debt - at the moment - is Council Tax. I refuse to pay these parasites in advance unless they are going to give me a discount.
Being prepared is like sound money and it helps you to survive and keeps all the various wolves from your front (or back) door.
It may all sound very tedious and boring - but it does contribute immensely to a relative stress free life.

[NorthernRaider]

iaaems, wise words, I refuse to pay council tax in advance as well but I do set it aside so if necessary I can pay it if TSHTF