Economic collapse: Pay off Credit cards or no?

[sitting]

My apologies to those who have not seen the movie "The Road." A 2009 film starring Viggo Mortensen.

For those who have seen the movie, just picture the father and son -- but this time with 100 Krugerrands inside the father's coat pocket. Facing the same dangers and challenges they encountered.

And ask yourself how much of a difference you think that would have made?

 

[Adobe]

sitting: Good point. I agree. At some point it becomes heart, mind, and body and what you can do with them.

 

[Can Won]

I totally agree with what you're saying Adobe and Sitting... [At some point it becomes heart, mind, and body and what you can do with them.][/quote]. Until we are at that point though, unfortunately we're still going to have to play the game...

 

[kalibex]

Curious as to the current consensus.... to take a middle ground, pay down some debt, but not use up all funds and also pay attention to basic durables (like, err... snowshoes) that it may be wise to obtain very soon?

 

[casper]

7 years ago I sold a house in Slavonia (antiques), for a house I received 17,000 euros and decided to close three credit cards that I had, american, diners and visa.
I took a huge weight off the back, at the bank they tried in every possible way to prevent in this plan, I would have gotten with the conditions on loans, discounts for various ski and summer destinations ...
Is a wonderful feeling when you wake up every morning now and I know that no interest is not being repaid, that I am not obliged to state anything.

 

[whitecoast]

I'd be worried about outstanding debt used as a pretext by authorities to appropriate property. I'm less worries about the private collectors per se, unless they start to become violent.

 

[SeekinTruth]

I'd be worried about outstanding debt used as a pretext by authorities to appropriate property. I'm less worries about the private collectors per se, unless they start to become violent.

Yeah, the way things are going, there could be all sorts of nasty things in store. The cops and other authorities are already out of control, so in a full economic collapse, they'll only get worse. But it's hard to say what will happen with "official" records and so forth.

 

[Alada]

I'd be worried about outstanding debt used as a pretext by authorities to appropriate property. I'm less worries about the private collectors per se, unless they start to become violent.

Yeah, the way things are going, there could be all sorts of nasty things in store. The cops and other authorities are already out of control, so in a full economic collapse, they'll only get worse. But it's hard to say what will happen with "official" records and so forth.

Or not just a way to appropriate property, but to appropriate debtors themselves perhaps? If everything collapses and govt ends up ‘owning the debt’, how are folk going to pay it off? Via work for the govt perhaps - a modern day equivalent of the debtors workhouse?

If that’s the case such ‘work’ is most likely not going to be working on rebuilding social infrastructure, more likely oriented toward gaining and retaining control.

 

[SeekinTruth]

Yup, working off debts for the authorities will be in the cards. There's already the beginning of the return of debtors prisons like in the 19th century. There's also the prison-industrial complex - private for-profit prisons - employing a type of slave labor.

 

[Leonarda]

Yup, working off debts for the authorities will be in the cards. There's already the beginning of the return of debtors prisons like in the 19th century. There's also the prison-industrial complex - private for-profit prisons - employing a type of slave labor.

Another possibility is that they use people in debt as "infiltrated agents" for getting first-hand information about people/what is happening in the streets, inside families.. that they can use to retain the control you and Alada speak about. As I understand it they have already categorized people depending on if they are a threat to the system or not, truth seekers, because they have spotted them in forums, in public conversations.. They have black lists of people, and they may use this system to get rid of them or at least (if there is some "law" that prevents that to happen) to mantain the status quo. Just a thought.

 

[kalibex]

Okay; I personally have my answer. While retaining debt might not automatically mean big trouble, given the track record for this reality... it's probably better to have less of a debt load, rather than more.

 

[LQB]

Okay; I personally have my answer. While retaining debt might not automatically mean big trouble, given the track record for this reality... it's probably better to have less of a debt load, rather than more.

Yes, do what you can within your means while not ignoring physical assets that support from a prep standpoint.

Here is a recent interview on Bix Weir's expectations for economic collapse:

http://usawatchdog.com/next-crash-already-started-bix-weir/?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+UsaWatchdog+%28Greg+Hunter%E2%80%99s+USAWatchdog%29

I'm not advocating his views, but its interesting hear well-researched opinions.

 

[gottathink]

My personal approach is that the debt represents an energy.

That energy debt I created from my own actions (in my early adulthood) and choices, I gave nothing for the debt. I mean I did not use the money wisely (student loan which I dropped out of my course and drank too much alcohol and pissed my life away for five years). So to me it is important to pay it off. Over the past five years I have nearly fully paid off my debt. I feel liberated by having taken control of my situation and freed my self from its shadow.

If the debt was created in order to give something to the lives of people through a business or a service then energetically maybe there is no debt.

Just a different angle.

 

[axj]

My apologies to those who have not seen the movie "The Road." A 2009 film starring Viggo Mortensen.

For those who have seen the movie, just picture the father and son -- but this time with 100 Krugerrands inside the father's coat pocket. Facing the same dangers and challenges they encountered.

And ask yourself how much of a difference you think that would have made?

I think it depends on how bad things will get. It may get quite bad in some places (especially in big cities), while being much better elsewhere.

The future is open, and for the less than the worst case scenarios gold and silver are a good way to store your savings, in my opinion.

 

[MusicMan]

It's difficult to know what ideally to do with a mortgage too. The other debt I have is a student loan that I don't pay anything on since our income is low enough for the payments to be deferred. I probably won't do anything with either debt but who knows if that's ideal.

My example: When I retired, I used the superannuation to pay off my mortgage and other debts.
Fine.
Now it seems that I cannot get a loan, because I'm a pensioner.
Even though I own my house and car.
If I still had the mortgage ( the option would have been to pay it down, but not completely, so that I still had say $10,000 left on it, I would have been able to use that as a springboard to other loans using the equity I have in the house.

Still, it's making me use cash a lot more, and save for what I need.
Big decisions required.