Canada’s consumer leverage growth will not end well

Canada’s consumer leverage growth will not end well

I wrote a comment in the reply section to the above article link, and it has gone missing, how sad is that! I will leave a similar comment here just to show you what even those who claim to be warning about debt problems, will hide from the public.

Credit card debt needs to be incentivized in the following manner...The higher the percentage of the monthly payment made  versus the total due, the lower the interest rate charge assessed for that month.

This is a sample chart for the credit card low interest rate incentive idea.

1. Pay 15% of the total due for that month, pay ZERO percent interest.
2. Pay 12% of the total due for that month, pay TWO percent interest.
3. Pay 10% of the total due for that month, pay THREE percent interest.
4. Pay 8% of the total due for that month, pay FOUR percent interest.
5. Pay 7% of the total due for that month, pay FIVE percent interest.
6. Pay 6% of the total due for that month, pay SIX percent interest.
7. Pay 5% of the total due for that month, pay SEVEN percent interest.
8. Pay 4% of the total due for that month, pay EIGHT percent interest.
9. Pay 3.0% of the total due for that month, pay TEN percent interest.
10. Pay 2.5% of the total due for that month, pay TWELVE percent interest.
11. Pay 2.0% of the total due for that month, pay FIFTEEN percent interest.

This percentage of the monthly minimum credit card incentive payment method would allow banks to address how their customers are doing overall. If the percentage of customers opting for the lowest percent of the total due payment, increases, then the economy is struggling. 

However, the incentivizing of lower interest rates for higher monthly minimum payments promotes responsible consumer stewardship of debt, and that should be the new goal going forward for the entire world.

Please consider viewing and then signing the Debt Neutrality Petition by clicking here.

From Zero Hedge, As HELOC Delinquency Rates Hit A Record, Are Student Loans Next?

One gripe I have with this Zero Hedge article that claims there is no debt deleveraging, just defaulting going on, is that there is no conclusion as to what is really going on. 

I believe what is really going is the government and bank's desire to destroy people's credit rating rather than restructure debts without declaring a default.

That's what this is all about, banks REFUSE to restructure consumer debt unless the debtor is first declared in default, even if the tanking of the economy and loss of equity values that chain reacted into people losing their jobs was a direct result of wall street home securitization fraud investment schemes, banks and the government just don't care.

The universal loss of equity has wreaked havoc with people's own personal wealth to consumer debt ratios, once again requiring a debt restructure, which will only happen if the debtor is scarlet lettered with a downgrade of their own credit rating, first, and then the banks may talk about a debt restructure.

From "Credit Today", Brit Families hamstrung by interest repayments.

Another must read article about the percentage of British discretionary income going towards interest rate charges (it's over 28%).

Dare I ask if that is before or after the Value Added Tax?

Click on image to enlarge.

Please consider viewing and then signing the Debt Neutrality Petition by clicking here.

From Financial Post, "Our love affair with debt keeps Canada’s banks on top."

Warning signs are loud and clear, Canada may be the source of the last drop of economic blood that is being squeezed from the economic turnip before another huge worldwide "correction" occurs. 

In typical fashion, Canadian banks are "doing well" by imposing more and more inevitable debt death sentences to Canadian citizens. The Financial Post questions why Canadian banks are able to post double digit profits and higher dividends even as Canadians go farther and farther into debt.

Debt Neutrality Petition believes that as the wealthy get wealthier, the REINVESTMENT of their existing wealth requires more and more consumer debt. 

We have met the enemy, and they is the billionaires and trillionaires.

Please consider viewing and then signing the Debt Neutrality Petition by clicking here.

Consumer Debt in Canada, Low Interest Home Equity Lines are surging in popularity.

The Wall Street Journal in Canada is reporting that rising consumer debt is a bad thing because it is based on low interest rates on home equity lines. I guess the message there is it's better to just charge higher interest rates and make the lower classes poorer while risking less money.

Here's a question to ponder, how come there are all types of regulations to qualify for any type of loan, but there are no regulations on how to spend the loan money?

Why not cap the amount the homeowner can draw every month? Or, those who agree to a monthly cap get a lower rate, those who want all of their equity available instantly pay a higher interest rate?

Lets say a homeowner gets a 100,000 dollar home equity line. Why not tie in the interest rate charged based on how much they "draw" every month. The less the homeowner draws per month, the lower the interest rate, the more they draw per month, the higher the interest rate. 

For credit cards, why not tie the interest rate into what percentage of the total due is paid back? Pay back 10% of what is owed every month, get a 5% interest rate charge. Pay back only 2% of what is owed, get a 13% interest rate charge. 

Of course these ideas have to be incorporated from the time the card is started, and not suddenly changed. This incentive could be offered to existing credit credit cards if nobody is suddenly being charged more interest for making the 2% minimum charge.

It appears as if the banks, wall street and the government want risk free interest rate profits, so anybody who is paying high interest rate charges on low monthly payments is left alone, then turned into an indentured servant for life if they go into default.

Please consider viewing and then signing the Debt Neutrality Petition by clicking here.

Anthony Randazzo of Reason Magazine discusses consumer debt with Fox Business News, refer's to some homeowners as Toxic Debtors, ouch!

While I commend Reason Magazine's Anthony Randazzo's foray into discussing consumer debt on Fox Business News, when Randazzo begins to discuss Toxic Debt and the sub human owners who stink of it, I lose interest.

CLICK ON IMAGE TO ENLARGE IMAGE. 

CLICK HERE TO SEE VIDEO,

CLICK ON IMAGE TO ENLARGE.

Better still, shouldn't most consumers lose interest, as in the interest rate charges on their credit card and student loan debts so they can actually pay down their debts?

Toxic Debt is one of those happy go lucky terms, kind of like Soylent Green. See the movie if you want to know what Soylent Green is, but you can probably figure it out.

The insensitivity of calling a homeowner's debt "toxic" when their loss of equity was induced by home securitization fraud initiated by wall street, is one reason why Fox and the Republican party disconnects with the middle class.

Please consider viewing and then signing the Debt Neutrality Petition by clicking here.

When a country like Canada appears to be doing well economically, it just means they have given out more credit to people who in the future won't be able to pay it back.

I thought Canada had a solid economy, one the U.S. should emulate.  Well it turns out that is just a myth. 

It seems to me that any country that has a solid economy is simply an economy that has extended more credit to more people who won't be able to pay it back down the road.

I believe it's called kicking the economic can down the road.

Click here to read about Canada and their rising mountain of consumer debt.

Please consider viewing and then signing the Debt Neutrality Petition by clicking here.