Sunday, January 08, 2017

Credit: Only where Credit is Due

New Seekers: Beg Steal or Borrow

In the last month or so Marcus and Agata have been in contact with some high rollers.  Or so we thought. By that I mean the couple or (usually) guy with the big house, the fancy car and all the trappings that say:

Yes, I'm a successful person.

But in several cases on digging a little deeper the words like Mortgage and Car Lease Plan were divulged.

It used to be that a Mortgage was a way for you to afford to own your own house over a period of some decades, because otherwise you'd be renting till almost retirement before your savings were adequate.

I'd like to propose a more honest way.

It is that you save up for things that you actually want to own, and by exception only take out loans or Mortgages for items that take a lifetime to pay for.

We are living in dangerous times where because of Government orchestrated almost zero interest rates not just for savers but also for borrowers lifestyles that you cannot rightly afford can be achieved via leveraged borrowing.

The cop out excuse for the many is that:  "But they [the banks] let me borrow it, who was I to say no?"  Often coupled with a sense of entitlement "But I deserve this level of living and luxury".

Here in the UK
Without Mortgage UK people are in debt to over 12K GBP per person. Astonishing

In 2017 it really is time for people to start living within their means, and to increase their means honestly if they want to afford more.

Talking House: Burning Down the House