What happens to our debt?, page 1

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Topic started on 21-1-2012 @ 06:48 PM by Pelvi

Okay I know this thread will not last long because I am only asking a simple question to whoever it may be that has the intelligence to answer such a question. If SHTF (which I imagine it will) what would happen to people's credit card debts and things of this nature? If money no longer really applies and the only things that are now important are food, shelter, and water. Then what is the meaning of this debt?

reply posted on 21-1-2012 @ 06:59 PM by Destinyone

It all goes bye bye...along with every other civilized notions we live with. Paper blowing in the wind, down deserted streets

But, that's just my guess.....

reply posted on 21-1-2012 @ 07:07 PM by Expat888

it wouldnt matter at that point..
life would go on as it always does ...

reply posted on 21-1-2012 @ 07:53 PM by Rockpuck

reply to post by Pelvi

If society crumbles and there is no infrastructure your debt to Chase won't matter much to you, now will it?

In the end our debts only matter to us because of perceived consequences to defaults. I pay my Mortgage because I want to keep my house. I pay my credit card bills because I don't want a bad credit score. I pay my car payment because I want to keep my car.

If I stopped paying on any of those items what happens to me? Nothing. I get a ding on my credit score, a fictitious number placed on me by banks. Eventually they may repossess some thing. If society is at a stage where "money doesn't matter" I highly doubt a bank will send a repo man to take your car from you.

Now in the event that there is a currency revaluation or a currency collapse or transition.. debts do not disappear. Almost all financial contracts do not have a clause stating debts must be payed in US Dollars, but that all debts must be paid in fair market value.. meaning your debt, even if the currency is changed or revalued, you still owe the relative debt so long as the structure of law is upheld. You can still default of course.. again .. the only consequence is a number on a screen somewhere.

reply posted on 21-1-2012 @ 08:48 PM by anonentity

reply to post by Rockpuck

It's an interesting concept, that I have pondered as well. At present if Debt dosn't go away were stuffed, and in bondage for a very long time.Hyperinflation would cure the problem, as long as wages kept pace. "Mortguage" actually means "death grip" ie in debt for ever.Debts are increasing expotentialy, and the method of paying them of is decreasing expotentialy.This is caused by the present banking system,operating in a globalised structure. Standard of living need't be effected,because by standard i mean "fashion".Life finds a way.The botom line is can you feed ,and house your self. Food can be traded, in fact its as good as currency..Chicken lay eggs..yeast makes beer..It all comes to a market where it gets swapped.On a local level.To get this going would take very little time Its all low tech.It would happen automaticaly.How good it gets is how dumb the population is.

reply posted on 21-1-2012 @ 08:49 PM by LittleVoice731

Debt will disappear. Credit scores are over rated anyway.

reply posted on 21-1-2012 @ 08:56 PM by kwakakev

Depends on how much things fall apart. If it is like a massive zombie outbreak and all social order collapses you will not have any debts to worry about, just surviving will be tough enough.

If it is only a small collapse with most of society still standing then these debts will still be somewhere in the system. The company that you took out the debt with may not still be around, but any remaining assets will be redistributed by the bankruptcy, with your debt part of those assets.

We all know the economy has its problems, but it is keeping society organized with the supply and demand for goods. One big risk in looking after the economy is that too much sudden change is bad as it disrupts the social organization. The blind reset of all debts is a bad thing and will create uncertainty in the market, similar to hyper inflation. There are many different situations and a reset may be appropriate in some cases but not all.

reply posted on 21-1-2012 @ 10:54 PM by giugliot

reply to post by LittleVoice731

Originally posted by LittleVoice731
Debt will disappear. Credit scores are over rated anyway.

No "lol". It is true most of credits/debts will be “lost”, a great relief for many. But there’s a very serious catch: The rules of the presently running game are that BEFORE the currency breakdown those who have the newly “printed” big sums of money at their temporary disposal will eagerly buy gold, real estates, goods, production centers, and so on. Which means they will actually be in an EVEN STRONGER economic position after the currency crash. And so an INCREASE of economic/financial enslavement/hardship will be the end result for the rest of the population.

edit on 21-1-2012 by giugliot because: spelling

reply posted on 21-1-2012 @ 11:14 PM by Pervius

If SHTF you will be like the Indians.

Someone else would come and take everything. They will get the land for free. The goods for free. The women for free.

America was created by giving people FREE land to make something of themselves.

America died when people couldn't have a home anymore to have a base to work out of....to try and make something of themselves.

After Americans lost the right to have a home, they lost their rights to life, trials, privacy. SHTF started awhile ago.

Congress gave the President Authority to kill Americans without a trial, detain Americans forever without a trial. What else do you need to rationalize SHTF already started?

reply posted on 21-1-2012 @ 11:20 PM by Rockpuck

reply to post by anonentity

Depending on how people manage their debt high inflation can be a good thing (assuming as you say it wages keep pace). For instance if you bought a home in the 1980s the average mortgage payment was $350/month .. average today is $1,400/month. If you could keep a mortgage without selling the house or refinances, typically after 15 years you make enough to pay large sums into the principle. But most people don't .. they refinance .. upgrade, take on more debt. A joke in the Middle Class: the more you make, the less you're worth.

reply posted on 22-1-2012 @ 03:49 PM by anonentity

reply to post by Rockpuck

The dream of being a "Freeholder" has been diminished to a point of get the cash out of the equity and spend!, the money is spent on deposits, for stuff that dissapears, but the debt left is real.Its a crap spiral.

reply posted on 22-1-2012 @ 08:03 PM by Pelvi

So how much longer is this whole collapse going to take? I'm not in debt but like 500 bucks and I'll have it paid off like.. next week but I just don't like this whole society thing too much