How Much Is Your Debt Worth?

Loan Shark

There’s a storyline on Corrie at the moment where a Debt Collector is hassling one of the characters for money… and we’re not talking polite letters here.

I know it’s only a soap but there are plenty of people who do suffer from threats and intimidation and not only from Loan Sharks.

If you owe someone money they can sell the debt to somebody else for less than the debt’s value but that second person can then chase you for the money.

This doesn’t just happen with small debts, big financial organisations do it all the time. Companies are traded for the value of their debts.

Personally I think this is part of the reason for the recent (and future) financial crisis.

Think about it, would the banks have been so free lending their money if they knew that they had to finance the bad debt themselves… of course not.

The simple fact is you won’t get responsible lending without responsibility.

So the sooner we make it illegal to sell a debt the sooner we’ll see sensible lending… at all levels.

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