Banks are basically loan sharks. They benefit by trying to get you so far into debt that the best you can do is pay the interest for the rest of your life. The interest also tends to be higher than other types of lending available to banks so it is (from their point of view) the best use of their money.
I found out recently that the World Bank is no different, encouraging poor countries to take out loans they cant afford and then demanding interest payments 'forever'.
My home country Zambia has recently got a lot of its debts from the past canceled. Until very recently the interest payments on these loans was a significant portion of the yearly budget.
Now I find out that the world bank is busy lending more money for all sorts of unnecessary projects. When will people not learn that if you cant afford it now, you probably wont afford it (+ interest) ten years from now or whenever the debt is due.
Originally posted by twhiteheadUnneccessary projects? Such as? If no aid were given Africa, you'd complain, if aid is given, you complain.
Banks are basically loan sharks. They benefit by trying to get you so far into debt that the best you can do is pay the interest for the rest of your life. The interest also tends to be higher than other types of lending available to banks so it is (from their point of view) the best use of their money.
I found out recently that the World Bank is no di now, you probably wont afford it (+ interest) ten years from now or whenever the debt is due.
Man....what do you want?
Originally posted by knightwestYou didn't fancy keeping the overdraft at the original level and spending the money on an unnecessary project then?
When I called my bank a few weeks ago to reduce my pre-arranged overdraft the customer service guy did not know how to do it. He had to get his supervisor. He had only been trained on how to increase overdrafts.
Originally posted by twhiteheaddo they have credit unions there?
Banks are basically loan sharks. They benefit by trying to get you so far into debt that the best you can do is pay the interest for the rest of your life. The interest also tends to be higher than other types of lending available to banks so it is (from their point of view) the best use of their money.
I found out recently that the World Bank is no di ...[text shortened]... now, you probably wont afford it (+ interest) ten years from now or whenever the debt is due.
Originally posted by GreatSantiniI have no objections to aid whatsoever.
Unneccessary projects? Such as? If no aid were given Africa, you'd complain, if aid is given, you complain.
Man....what do you want?
What I was talking about is not aid anymore than your credit card is aid.
There are times when borrowing money will help you, a mortgage for example. There are times when it wont help you which is what this thread was all about.
I saw an advert recently here in South Africa. It said something like this:
"Having to cut back after your Christmas spending? Well now you don't have to because we are now offering easy loans."