Uber Doomed...

[milanbenes]

can't pay the mortgage, your felxible friend will help you...

http://www.telegraph.co.uk/news/main...ncredit103.xml


Milan.

[DimPrawn]

That's not a problem, since if they can't pay the credit card, you don't lose the house (unsecured loans).

Wise move if you are facing a short term financial meltdown. Better than not paying the mortgage and losing the house.

Of course in a few months, they will lose the house anyway once the credit stops and the bailiffs arrive.

[AtW]

Surely if you default on credit card payment (over £1000) they can apply to court to make you bankrupt, and in this case your assets will be used to pay for your debts, or the house even in this case can't be used to cover those unsecured credits?

My guess is that the banks will start reducing credit card limits pretty quick, or maybe not as they would get higher interest rates on this form of credit.

[AlfredJPruffock]

Enough of this doom ... here is something to cheer you all up


April 2 (Bloomberg) -- The International Monetary Fund cut its forecast for global growth this year and said there's a 25 percent chance of a world recession, citing the worst financial crisis in the U.S. since the Great Depression.

The world economy will expand 3.7 percent in 2008, the slowest pace since 2002, according to a document obtained by Bloomberg News at a meeting of Southeast Asian deputy finance ministers and central bankers in Da Nang, Vietnam. In January the fund projected growth of 4.1 percent.

The reduction is the third by the Washington-based lender since last July, when it predicted the world economy would cope with the U.S. credit squeeze and grow 5.2 percent this year. Central banks will need to conduct policy ``as flexibly'' as the circumstances warrant, the statement said, adding that the European Central Bank has room to lower borrowing costs.

``The financial shock that originated in the U.S. subprime mortgage market in August 2007 has spread quickly, and in unanticipated ways, to inflict extensive damage on markets and institutions at the core of the financial system,'' the statement said. ``The global expansion is losing momentum in the face of what has become the largest financial crisis in the United States since the Great Depression.''

[AlfredJPruffock]

Surely if you default on credit card payment (over £1000) they can apply to court to make you bankrupt, and in this case your assets will be used to pay for your debts, or the house even in this case can't be used to cover those unsecured credits?

My guess is that the banks will start reducing credit card limits pretty quick, or maybe not as they would get higher interest rates on this form of credit.

Nope they just doubled my credit limit ... without my asking.

[AtW]

Nope they just doubled my credit limit ... without my asking.

Ok, maybe they figured they can recoup losses - credit card lending is done at much higher rate so banks can afford to borrow money at higher rate too.