You all must have heard that there are some financial problems in the world? It makes me wonder how it could have gone so far. Well I realized that it just was a disaster what was inevitable to happen. When banks allow people to get loans and mortgage their houses upto an extend, that they would have to pay 2,3 or maybe even more times costs for their loans than they get in through income, things will go wrong! It does not matter how much income you have, when you have more costs than income in the end you will loose each month.
I wonder why banks could have done this? Why do they get people in this trouble? Financial difficulties is one of the biggest worries of people all over the world.
I must say in our country it is managed. Which means, all loans and morgages are registered at one place and each time you want another loan, this registry is checked to see if it is responsible to get another one. They consider income and existing loans and then they take a decision on whether or not you get one. I think it is a good thing.
This said, I believe it is unbelievable that however we do have our finances in order, still we pay for other countries that have difficulties. Like we are punished for their mistakes. Wouldn't it be unbelievable if you would have to pay for your neighbours' loans?
My advise is not to take out any loan and if you do, think about it. Compare rates and read ALL their conditions! Try to make more money than you pay each month and try to save up money!
Also remember even when the downtime with regard to economy is long, there always is a time it will go up again!
