What are the penalties for stopping payment of loans?

redbhoy said:

So I end up paying it back anyway, through my taxes? Well then, my conscience is clear.

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Right, but so do I.

Why should I pay for you new car ? I already paid for my own

jhegarty said:

Right, but so do I.

Why should I pay for you new car ? I already paid for my own

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You shouldnt. But we are all paying for the banks mismanagement anyway so whats a few extra euro going to do?

redbhoy said:

You shouldnt. But we are all paying for the banks mismanagement anyway so whats a few extra euro going to do?

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Because the banking system would collapse , and your current account I mentioned above would be now be gone.

jhegarty said:

Because the banking system would collapse , and your current account I mentioned above would be now be gone.

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Good, because it hasnt been in the + funds zone for quite a while thanks to the loans I owe for.
My pay has been drastically reduced in the last while thanks to the banks and their mismanagement.

money is money whether digits or scribbles. Yes it is the banks money.
to do what you are doing puts you up high on the stupidity stakes. It is the rest of us that have to pay in the end

redbhoy said:

Good, because it hasnt been in the + funds zone for quite a while thanks to the loans I owe for.
My pay has been drastically reduced in the last while thanks to the banks and their mismanagement.

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You just lost your job because your company lost all it's cash reserves and now has no way to accept payments.

nediaaa said:

money is money whether digits or scribbles. Yes it is the banks money.
to do what you are doing puts you up high on the stupidity stakes. It is the rest of us that have to pay in the end

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Its the banks money?? Had the banks got this money to loan in the first place? Or had they a fraction of it and they never really lent anything?

it is the same as a small firms overdraft. It is not their money but they needit to keep giong. Did you ask the bank at the time if it was their money.
Grow up

redbhoy said:

And the banks have loads of morals dont they?? At the end of the day what are the banks losing if the loans arent paid? Digits on a screen maybe?

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redbhoy said:

It is quite interesting you say that. Banks might not have any morals but this did not stop that someone to go to them in the first place when he needed the money, did it? Isn't that a bit of a double standards here???

You borrow=you pay.

I understand that we are in a difficult climate and that some people's situations have suddenly changed, fair enough but if this happens, people with some kind of moral will at least try to address the situation and work out some kind of plan with whichever financial institutions they are in trouble with. Here the question was completely different, we are talking about someone who made a CONSCIOUS decision to borrow money and apparently suddenly was touched by the light and realised that the financial institutions are a big farce (in his opinion)! Isn't that a bit of an easy escape?? Wrong...just wrong!!!

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Thats a fair appraisal of the situation there Mongola.
If you were providing help to someone and then realised that they were the devil incarnate would you withdraw your help?

redbhoy said:

At the end of the day what are the banks losing if the loans arent paid? Digits on a screen maybe?

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The notion of an individual’s debts merely being digits on a screen has a basic flaw. These digits represent digits that also appeared in your bank account as a credit, which enabled you to spend or pay for something. These digits also represent an amount of real money that you agreed to repay, & appear on your legal agreement documentation with the bank. The thing is, what the digits represent (the amount of your debt) exist whether the screen is switched on or off. When the screen if off the digits go away, but the debt that you agreed to repay still exists.

What if the bank processed your wages as a debit on your account every month instead of a credit? Would you just shrug your shoulders & say it’s only digits on a screen, or would you get straight on to the bank & instruct them to rectify the situation, because you are unable to withdraw cash from the ATM due to the fact that the digits have two characters beside the digits that represent your balance or available funds: DR Would you accept the bank telling you not to be silly, if you weren’t happy that you could open an account elsewhere, & that the money due to you was just digits on a screen?

It is however a nice notion, one that I like a lot, but the comparison is more apt when referring to age as being a number, rather than to a debt as being a digit IMO.

redbhoy: life isn't fair. If you analyse anything in great detail you'll find all sorts of problems. There is corruption and ridiculousness everywhere. That is life.

By all means drop out of the system and move to the countryside, grow your own vegetables, raise your own animals, generate your own power source.

But you made an agreement to be a part of them system when you applied for and accepted that loan. So until then, you should do the right thing and pay off your loan.

You can then drop out of the system and do whatever you want.

it is a transaction.
Keep your side of it

Thanks UFC. My Mam always told me that too.
You've got my line of thinking alright. But I feel if I keep going I actually helping the system whereas if I drop out right now, I'll hinder that which I deem to be a kind of evil.

there is XXXXXXXXXXXXXXXXXXXX to help you= see no devil see no evil. then your problem should be solved. Stay away from the head shops

nediaaa said:

there is XXXXXXXXXXXXXXXXXXXX to help you= see no devil see no evil. then your problem should be solved. Stay away from the head shops

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I dont do drugs. Only one of the legal ones- alcohol although Im giving that up I swear.
If you've any decent contribution feel free to stick in on the thread but resorting to name calling doesnt help your argument.

If i reached a point where I had no assets and no means to service a loan, would it get to a point of whereby somebody would be jailed,but then 5 years down the line a new clean bill of health would be on your credit record. ?
If doing a short stint in jail would appease the banks for a fairly large sum owed i would consider this an option redbhoy, if no other avenue was open and it went to court.