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Personal debt

5K views 45 replies 32 participants last post by  Hill Walker 
#1 ·
I was wondering WHEN SHTF over the next year or so what is it going to matter if people are in debt up to their eyeballs? I am thinking we will be living in an era significantly worse than the great depression. I am not even convinced that people in state and federal jobs to include the military and law enforcement will always be paid. So if a 30%-50% of people are unemployed, bankrupt or just can't pay their bills what does that mean?

Eventually if the economy rebounds 10 or 20 years from now so many people will have bad credit that the government and financial institutions are surely going to have to risk giving credit to these people so they can make money will they not?

Also if a student has 150K in student loans and he can't repay them what happens? If he can't buy property through a bank he could just buy property on land contract (as long as he can get a job). I have two friends who have huge amounts of student debt and niether are planning on paying the debt back. One guy is now working in construction and his credit is shot. He does have a good paying job. The other guy said he will just make payments of about 50$ a month for the rest of his life. He is only 24.

I am glad I went in the army and got the GI Bill.
 
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#2 ·
I would never chance it in this climate. The government is attempting to nationalize everything: Banks, Housing, Auto - basically all of the things the slaves have debt on. So, when you decide to not pay your debts, you are effectively deciding to not pay the government. They will want their money.

You think the IRS is bad? Wait until they come to hunt down anyone that defaulted on a loan. If you did not feel like a slave before, you most certainly will once they get hold of you!

Proberbs 22:7 - The rich rules over the poor, and the borrower becomes the lender's slave.

Believe me, the rich want you as a slave. Go ahead and default; they will have you right where they want you.
 
#7 ·
I hope that you are kidding. Bettting your financial future on on TS hitting TF is a huge risk. If it does happen, great, you are extremely prepared. What if it doesn't happen. Then you get to pay 10% on your groceries for the next 20 years. I myself have thought about how bad things would have to get before doing this. I came to the conclusion that I could not bring myself to do it. I think the #1 thing alot of preppers are not prepared for is nothing happening. I think the odds are definitely leaning towards the possibility of TSHTF, but I'm not going to put all of my eggs in one basket and end up handing out shopping carts at Wal-Mart until I die because I cashed out my retirement funds and maxed out my credit cards. Just think how foolish one would feel if they would have done this for the Y2K scare. I'm all for prepping within reason, but there is a point where it can be destructive. Efforts need to be balanced.
 
#4 ·
So if a 30%-50% of people are unemployed, bankrupt or just can't pay their bills what does that mean?

It means you're gonn'a be poor.
If you can't pay the bills, you are in default.
And your credit will be ruined.

But you won't be the only one in the boat.
There will be millions upon millions with you.

However if the dollar is demonatized (declared worthless and replaced), and you owe money on real estate--you will still owe the same amount (plus interest for the period you did not pay) in the new money. Demonotized money may be converted over to the new system at possilble 5 to 10% on the dollar.

Possibly if you owe money on credit cards, this debt will stand also in the new money system.
There was a reason why they made it more difficult to declare bankruptcy and get out of these debts.

Also if a student has 150K in student loans and he can't repay them what happens? If he can't buy property through a bank he could just buy property on land contract (as long as he can get a job). I have two friends who have huge amounts of student debt and niether are planning on paying the debt back.


Student loans are the biggest scams ever... they will never let this debt go. And it's immune from bankruptcy. If the money is changed, so to will be this debt. As for the other guys who don't plan on paying back the student loans--as long as the US and its banking system exists... they will pursue these guys until the day they die for the money.

Unpaid student loans still accumuliate interest--so an upaid student loan of 30k can turn into 40 or 50K (or even more).
And they will still hound them for the money.

It will never stop.

I think the Hussein administration will move agressively to collect these debts as the crisis unfolds--look for them to suspsend driver's liscences, etc. to force people to pay.

The only thing that they could possibly hope for is a complete melt-down of the US economic system. Hyperinflation. Governmental collapse. Banking system collapse. At this point some one in authority would come forward and declare a debt "jubiliee" (old Jewish term) which wipes all debts off the books--and we could start over.

Don't hold your breath for this.
I think there is a better chance for the USA to break apart before this happens.

T
 
#6 ·
Student loans are the biggest scams ever... they will never let this debt go. And it's immune from bankruptcy. If the money is changed, so to will be this debt. As for the other guys who don't plan on paying back the student loans--as long as the US and its banking system exists... they will pursue these guys until the day they die for the money.

Unpaid student loans still accumuliate interest--so an upaid student loan of 30k can turn into 40 or 50K (or even more).
And they will still hound them for the money.
True. One of my mates went trained to be motorcycle mechanic. His 15K in student loans is now almost 50K. He says f'ak it. He does have a good job and he reckons now that it just encourages him to pay cash for everything. He says that after 7 years the debt will be wiped away anyway. Seems reckless to me.

Thankfully my only credit card is almost paid off.
 
#12 ·
At the rate we are going credit scores wont matter soon... I think charging up the cards for guns, ammo, food, and preps is a better investment; then watching your credit lines vanish with no preps. Look whats happening with the forclosure homes people are living in them and not getting kicked out now. When everyone is in the same boat you will get safety in numbers.

No point in watching Mr Joe charge up his credit card buy all the food, ammo, and guns; and then 6 months later you realize there is no more supplies to buy left and your cards are all closed. I think we are going to get hyperinflation very soon and if you don't have a something on credit you going to get screwed for being a saver. Right now I would have at least 25% of total credit used up. BTW do your research and figure out what you want to do this is just my opinion.
 
#15 ·
I completely agree that Hussien is THE ANTICHRIST.
But I do not agree that you should go and max-out your cards.
This is a stupid way to bet.

The only way to really do this is to possess a time machine and see into the future.
And since we don't have this--bet safe.

And if anyone does have access to a time machine, please PM me some lottery numbers and I will share the winnings with you in cash off your government employer's radar. lol

T
 
#19 ·
And if anyone does have access to a time machine, please PM me some lottery numbers and I will share the winnings with you in cash off your government employer's radar. lol

T
You need to talk to "Ben". Seems he has a way of making whole islands disappear and jump gangs of people from time warp to time warp. :rofl:


That's just a joke to lighten the mood. If ya don't know, Ben is a character on LOST.
 
#16 ·
If the Obama and the Libs start up a Federally owned "Bad Note" bank, one possibility is that the governemne will foreclose on properties and call in loans of all types. Of course they will have some kind of a great social program that might allow you to stay put and pretend you are not indebted to them. But the truth is you could be living in a situation where you answer to the government for everything you have. They will own you.
 
#20 ·
Betting on a complete collapse is not only stupid but real ****ing disgusting. you shouldn't have gotten into debt if you didn't have the money to pay it back. Now I have lived all my life trying to stay debt free, and you get to live the high life in debt and get away with it? I will be in the lynch mob coming for you.
 
#21 ·
DING DING !!
Excuse me boys but you CANNOT file bankruptcy with the federal govt. Dont believe me? Then check it out for yourself.

Any loans from the FED are not open to bankruptcy laws, I have an acquaintance that tried it, his attorney laughed at him.

He said you would have better luck filing against the mafia then the FED.
 
#23 ·
All these possibilities are why I am making a mad dash to pay off all my debt. The sooner I'm out from under it, the less I have to worry about in any of these scenarios. The way I see it, if and when things get real nasty, money will be inconsequential unless you owe some to the government. If you don't have the government hounding you for cash, then what will matter to you are supplies, tools, skills and trading items. I think trading (I'll install a new window for you if you can fix my generator) will be the way to go.
 
#24 ·
you can believe if you owe any bank or county,town, state any money, eventually, someday, someone will be around to collect, if you're gone, they will come after any assets that you left anyone. working for every institution is a group of slime bags called lawyers and if there is a paper trail with no end, he'll find it, you may change, the world may change, but lawyers won't, they helped make the fix we're in and they'll be there to capiltlize on it.
 
#26 ·
If you owe, you or your descendants will pay. As long as there's a form of government and a means to enforce power then there is still a ruling class and that class exists only to remove from you as much as it can, whether by debt or slavery or coersion or by stealth. Raise your fist and you will be struck as if by god.
 
#29 ·
All I can say is live off the grid as much as possible, shtf scenario or not. Going into debt to prep is not a good idea. If you are wrong you just created a world of pain for yourself, your family, and probably your descendants.

Also, if I recall the gov't changed the bankruptcy laws in 07 or 08. If you file, the interest, fees and assorted garbage stop but you still have to pay all the money back. Just like a little black cloud that will not go away. Consult an attorney on that one though; that is just my understanding of it.
 
#35 ·
Going into debt with the intention of not paying it back is stealing. It's amazing how many people are ok with stealing as long as it's against a soulless corporation. Of course, in reality that cost is simply passed on to the corporation's other customers, just like their taxes are.

The biggest reason not to be in debt when TSHTF is that it may not hit the fan all at once. Things will deteriorate, and more liberties will be lost long before the complete collapse of society (probably). Long ago, people that didn't pay their debts didn't get to file bankruptcy, instead they went to prison. I don't think it's much of a stretch that such practices may come back into fashion after the Sh*t begins to hit the fan.
 
#37 · (Edited)
I am not sure I can agree with, even though I once would have. After the bankster bailout and the abuse that has come to light from that fiasco I believe that the ptb might be afraid that putting people into prison for debt could be the spark of the civil unrest/revolution that they are trying to avoid. More likely they would give the corporations that held the debt more tax breaks/cash and then raise taxes and fees to cover the expense.
 
#38 ·
I am wondering if it is worth going into debt just to buy gold and silver? It is a risk but so are all investments. But it seems that gold and silver is increasing rapidly. So why not get out a 10K loan in precious metals. If everything in the economy works then it can be sold. May lose a little but that is acceptable. On the other hand if we run into hyperinflation then that money in silver and gold is going to go through the roof.

I have also decided (90% anyway)that I will go back to school and work in the medical field. A job as a nurse is going to be a useful skill in any future world. Medial skills will be worthwhile I believe. I believe that most degrees such as liberal arts degrees (which is what I have) and the like are not going to be overly useful in the new world of which we will be a part.

I am also working on getting an extra part time job so I can speedup my prepping.
 
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