Money and the credit-debt system

Originally posted by Fishy
If you wouldn't loan me a lot of money then how should I buy a house? How am I supposed to start a new bussines? Without banks without the ability to loan large amounts of money we would be screwed, and the simple fact is people won't loan other people large amounts of money, company's however will, but company's want to make money meaning you will pay interest on the money.

Originally posted by Deano
well done debs. thats one of the main goals to it. and no one can see

would there be problems if there was interest free money?

Yes!

Because there would be no incentive to lend money.

And money spent on credit is one of the driving forces behind modern economies. Money- even money borrowed against the futire- is MUCH more useful spent than unspent. It keeps things going, empoweres economies, pays wages, allows expansion.

Remove the concept of interest and you will crash the economy.

Credit gives people opportunities. Countless numbers of small businesses that have contributed to society and provided employment are only there because they could borrow to set up in the first place.

And you don't get the sort of cash needed to set up a business by borrowing from your mates, unless you are lucky enough to have very rich mates.

There has to be restrictions on purchases with credit cards. If there weren't people would spend more than they earn. Which is why I'm all for credit limits.

if the banks ran no risk of losing money, there would be no credit restrictions at all, as well as no credit scoring. what? you want to borrow 6,000,000? sure no problem. please sign here...in blood

Originally posted by WrathfulDwarf
There has to be restrictions on purchases with credit cards. If there weren't people would spend more than they earn. Which is why I'm all for credit limits.

Credit limits should really be down to the lender, who after all has liabilities if the debtor becomes bankrupt.

The better solution is to provide the resources for everyone to be money smart. If you borrow over your head, that was probably a stupid thing to do.

Not necessarily stupid but rather careless or undiscipline (sp?) on credits. There have been surveys showing a large amount of colleage students going bankrupt before their graduation. People need to understand that credit isn't free money. As I said earlier there is no such thing as free money. When you borrow you must pay it back.

I'm somewhat at a loss at understanding how people can qualify for college but not understand that credit isn't for free... but oh well.

Originally posted by Ushgarak
I'm somewhat at a loss at understanding how people can qualify for college but not understand that credit isn't for free... but oh well.

in the u.s. there are no required courses in high school nor college dedicated to handling personal finances. but it makes sense doesnt it? wouldnt the whole system of credit and lending just crumble if everyone suddenly turned frugal?

And they say school prepares you for life...

I think the issue of college students not owning up to their credit debts has a lot more to do with the individual's background and rearing and less to do with education on the issue. And besides, since when has a class ever detered kids from not doing something? Who here attended mandatory pregnancy awareness or drug awareness seminars in school and still either did the deed or knew another who did?

Originally posted by Wesker
Who here attended mandatory pregnancy awareness or drug awareness seminars in school and still either did the deed or knew another who did?

whats that have to do with it? you are comparing preachy lectures of "say no to drugs" and "dont have sex" with the idea of an actual home economics course. not a lecture saying "dont go into debt" but more to explain the credit system and how to handle personal finances and balance your own budget. the most universally practical course and our functionless k-12 system cannot be bothered.

Originally posted by PVS
whats that have to do with it? you are comparing preachy lectures of "say no to drugs" and "dont have sex" with the idea of an actual home economics course. not a lecture saying "dont go into debt" but more to explain the credit system and how to handle personal finances and balance your own budget. the most universally practical course and our functionless k-12 system cannot be bothered.

The entire point was, learning from school doesn't exactly show promise for curbing bad life decisions. And it's not exactly lack of knowledge that causes these kinds of decisions, it's how people grow up and become. If you have a kid who's never known true responsibility, his parents bought him everything, and he suddenly gets credit cards, what is he most likely to do? Spend thoughtlessly. On the other side, you have someone who was indoctrined with responsibility or had to take the reins before acquiring credit, and what are they most likely to do? Be cautious and thoughtful.

That was my point.

I'm not talking about some sort of course being run. I am talking about the fact that credit isn't free being blindingly obvious.

Originally posted by Ushgarak
I'm not talking about some sort of course being run. I am talking about the fact that credit isn't free being blindingly obvious.

Certainly not questioning you there, but since when has "blindingly obvious" ever stopped most people?

It's also blindlingly obvious that smoking kills, but people still do it against their better judgment.

Originally posted by Ushgarak
I'm not talking about some sort of course being run. I am talking about the fact that credit isn't free being blindingly obvious.

gee thanks, but i knew that. i was only pointing out a tragic irony in the u.s. system of education.

U.S. education lags behind Cyprus. Or is it Cypress? Well, at least I can find it on a map. Beats most of my American neighbors.

Originally posted by Wesker
Certainly not questioning you there, but since when has "blindingly obvious" ever stopped most people?

It's also blindlingly obvious that smoking kills, but people still do it against their better judgment.

Yes, and if they didn't think that was possibly going to happen, that also makes them idiots.

My only point was that if you are in College, ignorance about how credit works is no defence.