In my quest to alleviate the effects of relentless persecution of debtors by Creditors, Debt Collectors and the likes I have come to some conclusions that needs to be discussed and solutions found.
I have always said that my views on the payment of debt in some instances are a bit radical but there are reasons for this. Let me explain. I have been there, felt the pain when you cannot pay for your daughters wedding. When you sit in a house with no electricity for 2 years. When you.......let me stop there. I have been there................And only a small portion of that was my own fault. The portion where banks finance you to the extend that you have to pay them R50 000 per month when you only have disposable income of R30 000. Why did I not stop it ? When you have mouths to feed you will take any credit you can get. That is why it is called reckless lending and not reckless borrowing.............
For the purpose of this discussion I am referring to banks in particular but this includes any other creditor. A Bank makes an informed decision on who they lend money to and how much and for how long based on information supplied and proven to them. Their decisions (should) also take into account the state of the economy, the ability of certain types of people to repay them and the industry in which they operate. They should not lend out money based on "reckless lending" principles.
Banks receive and approve home loans for a sector of the market based on what I just said. During a period roughly 7 years ago the property market had a rough time and so did the economy. Yet the banks did business and granted loans based on their criteria. Or no criteria at all. This was a calculated risk. It still is.
Life goes its normal way. People loose their jobs. They loose their businesses. They get despondent and cannot pay their debts. The government in its wisdom gave birth to a thing called Debt Counseling. This is just another debt collection system and have nothing to do with counseling.
This is a dismal failure. It does not address the real problem of over indebtedness in any instance
It does not address the plight of those that lost their income due to losing their jobs or businesses.
What does debt counselors do ? They just distribute the available money after living costs have been taken off as well as their fees (of course their fees) to all the creditors. This is just another debt collection system and have nothing to do with counseling.
The problem with the system is that nothing actually changes. It is only available to people that have a job. These people should never have been given credit to the extent that they end up here in the first place. A whole new industry has been created to no end at all. Creditors will now avoid you like the plague and they will sit like vultures to see when you are going to default again. And you will. Because now the debt has increased with the fee of the so-called counselor ! And because you have not been counseled to apply more discipline you will default again.
Back to normal life : Those that did not get to hide behind a debt counselor in time and those that lost their jobs or businesses.
The banks start collection procedures and at the end of the initial collection actions of the banks when the client has no way of paying anymore and the banks have either repossessed the property they financed or attached the other loose assets people need to survive the debt is usually sold to unscrupulous debt collectors who make a living out of people's misery. Let me state without blinking an eye. I have no feelings or respect for debt collectors. Full stop. If you ever thought I am going to give a hoot for their loss, sorry to disappoint you , I am not !
I think it is time that we have a total rethink on the question of old and sometimes prescribed debt.
A debtor has to make decisions based on priorities - this is where the socio-economic issue comes in. You have to look after the well being of your family first and foremost. But should you have unresolved debt the system will not allow you to do this. This is why debtors resort to all sorts of methods to avoid the phone calls and other methods employed by the vultures.And this is also the reason why I wrote the guide to handle debt collectors - legally.(link here)
We already have the system where you could be sequestrated and it is not called the new beginnings law in the United states for nothing It allows you a new beginning in life. But that is only if you have assets that can be divided between the vultures. Why can't we devise a system where a debtor can be measured as to his capacity to repay debt when he has no work , no business, no income. And not pursue him again when he is able to find work again ?
I am seriously pursuing ways and means to help people out of the corner they have been chased into .
To be continued...............................
I have always said that my views on the payment of debt in some instances are a bit radical but there are reasons for this. Let me explain. I have been there, felt the pain when you cannot pay for your daughters wedding. When you sit in a house with no electricity for 2 years. When you.......let me stop there. I have been there................And only a small portion of that was my own fault. The portion where banks finance you to the extend that you have to pay them R50 000 per month when you only have disposable income of R30 000. Why did I not stop it ? When you have mouths to feed you will take any credit you can get. That is why it is called reckless lending and not reckless borrowing.............
For the purpose of this discussion I am referring to banks in particular but this includes any other creditor. A Bank makes an informed decision on who they lend money to and how much and for how long based on information supplied and proven to them. Their decisions (should) also take into account the state of the economy, the ability of certain types of people to repay them and the industry in which they operate. They should not lend out money based on "reckless lending" principles.
Banks receive and approve home loans for a sector of the market based on what I just said. During a period roughly 7 years ago the property market had a rough time and so did the economy. Yet the banks did business and granted loans based on their criteria. Or no criteria at all. This was a calculated risk. It still is.
Life goes its normal way. People loose their jobs. They loose their businesses. They get despondent and cannot pay their debts. The government in its wisdom gave birth to a thing called Debt Counseling. This is just another debt collection system and have nothing to do with counseling.
This is a dismal failure. It does not address the real problem of over indebtedness in any instance
It does not address the plight of those that lost their income due to losing their jobs or businesses.
What does debt counselors do ? They just distribute the available money after living costs have been taken off as well as their fees (of course their fees) to all the creditors. This is just another debt collection system and have nothing to do with counseling.
Back to normal life : Those that did not get to hide behind a debt counselor in time and those that lost their jobs or businesses.
The banks start collection procedures and at the end of the initial collection actions of the banks when the client has no way of paying anymore and the banks have either repossessed the property they financed or attached the other loose assets people need to survive the debt is usually sold to unscrupulous debt collectors who make a living out of people's misery. Let me state without blinking an eye. I have no feelings or respect for debt collectors. Full stop. If you ever thought I am going to give a hoot for their loss, sorry to disappoint you , I am not !
I think it is time that we have a total rethink on the question of old and sometimes prescribed debt.
A debtor has to make decisions based on priorities - this is where the socio-economic issue comes in. You have to look after the well being of your family first and foremost. But should you have unresolved debt the system will not allow you to do this. This is why debtors resort to all sorts of methods to avoid the phone calls and other methods employed by the vultures.And this is also the reason why I wrote the guide to handle debt collectors - legally.(link here)
We already have the system where you could be sequestrated and it is not called the new beginnings law in the United states for nothing It allows you a new beginning in life. But that is only if you have assets that can be divided between the vultures. Why can't we devise a system where a debtor can be measured as to his capacity to repay debt when he has no work , no business, no income. And not pursue him again when he is able to find work again ?
I am seriously pursuing ways and means to help people out of the corner they have been chased into .
To be continued...............................
