Tuesday, January 31, 2012

More on the Moral vrs Legal obligations

Look at this report here:
This is the piece that's interesting to me:
"....There's a moral component to that decision, of course. ...... But remember that companies default on their obligations when it makes financial sense for them to do so, via the bankruptcy process. Even the Mortgage Bankers Association itself, in a flourish of irony, arranged for a short sale of its Washington headquarters. It's not personal; it's business. So think of strategic default as a business decision, and do a cold-eyed cost-benefit analysis of whether it makes sense for you...."
I see businesses making these "it's not personal it's business" decisions everyday, why shouldn't I be Iowesomuch Inc and do the same and forego my moral obligations and stay only with my legal obligations?
I hope to hear from you about this.

Monday, January 2, 2012

Interesting story

Read this part :
"Some lenders say borrowers have a moral obligation to pay their debts even if they are no longer legally responsible."
I didn't know that debts had a statue of limitations from 3 to 10 years. So after that time they had to stop collecting from you. So the lenders say borrowers have a moral obligation? What if the roles were reversed? Does a lending company have any moral obligations to do something once the statue of limitations has run out? Would they do it?
It's interesting that some people feel the need for a credit card rather than a debit card, it must be a cultural thing because I still hate using a credit card to pay for stuff because I know I'm increasing my debt.
Also interesting is those rates, 19% for these new cards, and a national average of 13%. Even with the high rate that cards is still lower than the one I recently got to consolidate my debt, which is 22%. Everytime I hear those rates in the US I wonder if people here in Honduras ever get out of debt or just move it from one place to another until they leave the country or disappear into the informal sector of the economy.
I hope you are starting 2012 with no debt or at least on your way to debt free life.