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im wondering how important it is to pay down debt in the event of a nasty depression/economic collapse. You cant claim bankruptcy on student loans.
It would probably take me 2 and half years to pay off debt if I work my arse off [which im doing]. If debt gets erased due to a mini apocalypse I might as well take my time and invest in a top of the line covered rowboat, fishing nets and cigarette lighters.

Seth in seattle
 

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HOPE4BEST&PREP4WORST
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I would, for now at least, continue working arse off but pay min on debt, make list of priority must haves like long term food storage,water, guns, ammo, if you have those basics covered then decide about rowboat, nets, firestarters, etc. I would suggest not getting top of the line rowboat maybe find hella deal used one in case it gets stolen or plundered, hell, maybe get a couple of good cheap used ones and store one. Wish you the best of luck....err I mean PREPS!
 

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That's a damned good point. I know that I have never lived through anything like this. So what point do you mentally write off your own debts? Well, some of them anyway. I guess house foreclosures will increase and the Repo man will find himself in a growth industry. Therefore you don't want default on your mortgage if you can afford it, or your rent if you're renting. What debts could you reasonably safely ignore post-Economic SHTF? Credit cards?

Maybe FerFAL could chime in with his thoughts on how this would or would not have worked in Argentina during the worst of their recent SHTF?

I'm gonna look into what the deal was during Great Depression 1.0.

With such an economic climate, it makes you wonder that if/when things improve, will a lousy credit rating torpedo your future like they like to think it can now? After all, I foresee a large proportion of the population defaulting on all or some of their debts in the near future.

I agree totally with Henrygt when he says pay the minimum payment and concentrate on tangibles - i.e. things you can eat or things you'll need to use. We are just about out of debt, so it doesn't really worry me, but I feel this will be one of the biggest social issues post-Fin-SHTF.

Thanks for a thought-provoking post chiefseth.
 

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Survivalist!
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I hear ya...I'm a freshman in college, so all this economic woe is making me wonder what it'll be like when I get out in 4 years. I guess I'll have to wait and see! :)
 

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Remember - credit is what got us into this whole mess to being with. Banks loaned a disproportional amount of credit compared to the amount of money from savings and payments. Paying off your debts and saving money will help the situation, pulling money out and buying things on credit will worsen the situation...now ask me if I think the government should "fix" the situation by taking out credit to buy bad loans.

As for them forgiving debt due a depression, highly doubtful. Unless you fall through the cracks and get "forgotten" or declare bankruptcy they will find a way to get paid back.
 

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Work camps

I think everyone will have to pay back there credit.. They will split up familys an send people to the work camps, It could get ugly fast.
 

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Proud American
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they could garnish your wages. if you dont pay on school loans. i wouldn't be surprised if they could do that with other stuff as well. its us against them , who do you think would win?
 

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I talked to a lawyer freind of mine and he said student loans will follow you to the end and your rent or morgage must still be made but credit cards can wait. It is a unsecured debt and not really able to take anything back. Do not borrow any money to pay off credit cards. It will become a secured loan and you might actually lose your cars or house. Of coarse this all depends on the state you live in.
 

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Think of the anti-globalization riots like in Seattle. Now imagine if everyone in the metro area who was protesting/rioting with one single target in mind - that group which has caused their standard of living to plummet, the TPTB.

Imagine if at least half of the law enforcement and national guard troops sympathized and did their assigned tasks a little sloppier that day because they were suffering too.

Imagine all this on a national level.

It's us against them, who do you think would win?

It's almost time for the Feudal Lords (corporate America) to become afraid of their serfs. After all, they only get rich and stay rich because we let them take our money.
 

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my thoughts
lets say this thing gets bad but comes back without shtf. say you get a new good paying job, or for some reason you want to buy some land or a new house, car etc.. you better have cash or great credit. after this mess our finacial markets will not be the same will be very hard to get a loan for anything, no more no money down, and loans if you have bad credit, right now I know someone who just sold thier house and has 50k to put down and decent credit but dont know what to do because they have to be out by the 18th and they cant get a loan.
 

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Personally, I would be doing all I could to get out of debt. I'd be eating and living RIGHT NOW like I was surviving the apocalypse to get of debt. Being in debt makes you a slave to your creditor. They WILL get their money from you one way or another.

I'd rather have NO preps than be in debt to anyone.
 

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There's a reason the United States has Bankruptcy protection for individuals. I'd say that everyone should keep enough money somewhere that they'd be able to pay for a bankruptcy ... then use the rest to work on paying down debts. If you spend your last dime on credit card payments, you may not have enough money to file for bankruptcy protection.

If you hear any talk from the government about changing or suspending bankruptcy protection for individuals, you may want to file immediately, before they put you in a position you won't be able to get out of. Bankruptcy isn't the end of the world, especially if you don't plan to go back to living a highly leveraged existence. BTW, there's no faster way to get "Debt Free".

p.s. Anybody else seem to think there may be a link between the President's push to change the bankruptcy laws a couple of years ago and the credit crisis we're in right now? Almost as if they knew it was coming?
 
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