As we all know we are in the midst of a huge credit crisis and the main reason this has been caused is because of the banks. Over the last five years banks were giving mortgages to families and individuals that just could not afford them and missing payments. This has all led to the demise of the banks and businesses that were relying on them failing too.
I have always said that if you have not got the money to buy something, them simply do not buy it ans wait until you are in a better position? I mean loaning over 100k is a massive amount of cash. So this is why banks need to get their act together and carefully consider who they give their money too.
I have noted down a few situations where the banks should not be giving money too.
1) People that are on low income, what the banks are forgetting, is that people do not just have their mortgage to pay. They have the day to day costs of living to be taken into consideration. So someone that is earning 30k in my view should not be borrowing huge amounts for a home.
2) How long have they been in their work place? There are a huge amount of people in the world that just hate working and end up getting sacked from every job they get. These lazy people then decide to get back into work after a year and as soon as they get their first wage packet they just go out and get a mortgage and expensive cars on finance. And in a truth, no one can be bothered to tell these people any different, rather the opposite actually, as what the banks do is just hand over the money.
3) A very important aspect that the banks should look at is the lifestyle of every individual. How many times have gambling addicts got given a mortgage and car and then blow there monthly repayments on playing online poker or roulette. Addicts can not control themselves, so lending them money is a very bad idea.