Thursday, June 12, 2008

Personal responsibility strikes again

  • Large ticket items - very necessary for the normal life
  • Interest in mid 20's - reflects true risk
  • Drip feed arrangements - an expensive way to get money
  • $50K to $60K on hock - all for liabilities, not assets
  • Complaining poor - the good times are over
  • Twice the household annual income - nice while it lasted
  • Desperate - the bailiffs have been knocking
  • Banks won't touch them - again, reflects risk
  • Unaffordable debt - yes, we have our priorities sorted
  • Unsecured debt - so risky we couldn't offer collateral
  • Deferred payment / interest free debt - reality bites when you have to pay
Yes, generation XX-YY, or whatever numbers we are up to, is in the deep end, shovelling the brown stuff with a pitchfork.

As the true cost of living sky-rockets, they suddenly learn the value of why older folk, being much despised plodding capitalists, who might have amassed unnecessarily such assets as a house, using good debt to service a mortgage.

Personal responsibility bites again.

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