Debt and economic risk

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plodder
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Debt and economic risk

Post by plodder » Wed Apr 08, 2020 7:19 am

Lots of personal debt out there, secured on depreciating assets... https://www.theguardian.com/business/20 ... ments-help

The last credit crisis was unsustainable mortgages, these loans don’t look much better.
Last edited by Stephanie on Thu May 14, 2020 10:03 am, edited 1 time in total.
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lpm
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Re: Debt and economic risk

Post by lpm » Wed Apr 08, 2020 7:46 am

We talked about those car loans on another forum. Millions of people never own a car, just keep renewing these schemes every 3 years. They get to drive lovely new cars all the time, but are always paying for the steepest part of the depreciation curve.

I was thinking it was a great time to replace my car, but it's not quite knackered enough yet. And I haven't driven it for 4 weeks. But there must be some fabulous deals out there.
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Woodchopper
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Re: Debt and economic risk

Post by Woodchopper » Wed Apr 08, 2020 8:15 am

plodder wrote:
Wed Apr 08, 2020 7:19 am
Lots of personal debt out there, secured on depreciating assets... https://www.theguardian.com/business/20 ... ments-help

The last credit crisis was unsustainable mortgages, these loans don’t look much better.
Mortgages are still a much larger issue than car loans (worth £1 499 billion).

Perhaps lpm should start looking out for good property deals.

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lpm
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Re: Debt and economic risk

Post by lpm » Wed Apr 08, 2020 8:27 am

House prices will be way down, except that it has been frozen. No way of telling how it will respond when it reopens - which could be a year or more.

But cars sitting on forecourts need to be sold ASAP by companies eager for cash, even before any impact of cars being returned by unwise lessors.
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