How does the "credit binge" end?
Posted: February 24th, 2017, 11:13 am
Been reading some concerned articles in the media about "unsustainable" household borrowing, through credit cards, car loans, and even mortgages.
If the "binge" really is "unsustainable", what happens at the bitter end? I have limited experience of 08/09, having been absent overseas, so I've been pondering what this might look like in practice.
Being a parsimonious sort, I hardly have any debts at all, but is it possible that I'm the fool? Is the correct course of action to remortgage to 90%, max the credit card, and hope for some kind of moral-hazard-ridden government intervention?
And what about those of us with assets? To what extent would government act to tax said assets in order to forgive the debts of those citizens who have iPhones on monthly contracts?
And finally, how might one profit from such a "bitter end", assuming there's one in the offing. Nothing more exciting than linkers?
If the "binge" really is "unsustainable", what happens at the bitter end? I have limited experience of 08/09, having been absent overseas, so I've been pondering what this might look like in practice.
Being a parsimonious sort, I hardly have any debts at all, but is it possible that I'm the fool? Is the correct course of action to remortgage to 90%, max the credit card, and hope for some kind of moral-hazard-ridden government intervention?
And what about those of us with assets? To what extent would government act to tax said assets in order to forgive the debts of those citizens who have iPhones on monthly contracts?
And finally, how might one profit from such a "bitter end", assuming there's one in the offing. Nothing more exciting than linkers?