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what happend to my loan if ALL banks fail ?

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  • 14-08-2011 9:29pm
    #1
    sebas
    Registered Users Posts: 34 ✭


    Hi All,

    I know that if ALL the banks fail (and so the governments ) I will lose my savings....

    but what would happen to my debts ??? what would happen to my 30 years loan ?

    thank !!!


Comments

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    #2
    homer911
    Registered Users Posts: 5,119 ✭✭✭homer911


    Nothing!


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    #3
    catbear
    Closed Accounts Posts: 5,092 ✭✭✭catbear


    The banks have already failed, consider them debt servicing centers. banks need to make loans to pay deposits so when was the last time you heard of someone (other than a first time buyer) getting a hassle free loan?


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    #4
    blah
    Registered Users Posts: 938 ✭✭✭blah


    Think of your loan as an asset that someone else owns. It's an agreement that you will pay back some money over a set period of time, and so, it has some value, in the same way that the building the bank branch operates from, or the bank manager's company car has value and so they are also assets. So if a bank did fail, those assets could be sold off, and you'd just end up paying your loan back to another bank, or much more likely, the failed bank would be bought up in it's entirety by some other bank.

    Although I agree that the banks have failed, and they're just being propped up by government loans. :mad:


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    #5
    Magic Beans
    Closed Accounts Posts: 329 ✭✭Magic Beans


    If ALL, I presume you do mean all as in worldwide, the banks fail then money as a concept will have failed also so I have no idea what you would pay back the bank with. Monetary debts would become meaningless. We would be back to bartering. I suppose you could pay them back in fresh eggs and chickens but who would decide how much a chicken is worth? Could you pay off your whole mortgage with a single chicken? Theoretically possible.


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    #6
    bryaner
    Registered Users Posts: 3,181 ✭✭✭bryaner


    Magic Beans wrote: »
    If ALL, I presume you do mean all as in worldwide, the banks fail then money as a concept will have failed also so I have no idea what you would pay back the bank with. Monetary debts would become meaningless. We would be back to bartering. I suppose you could pay them back in fresh eggs and chickens but who would decide how much a chicken is worth? Could you pay off your whole mortgage with a single chicken? Theoretically possible.

    I like you, I'm heading off to buy some chickens..;)


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