Interest
I once heard a bank manager say that when he got married in the 1950s, he could buy a new house with three times his annual salary. Now it takes six times the average salary to buy a new house. The difference is that women have gone into the workforce. In the 1950s, most families were single income, whereas now they have two. Two incomes allow a family to service twice as much debt, so the size of mortgages have doubled. This pushed up the price of houses.
Families still live in very similar houses, but they now have bigger mortgages, so they pay for the house in interest four times over instead of just two. No one is better off, except the banks who collect the interest. And the people who bought their houses in the 1950s and 1960s and sold them to two income familes.
Working gives women a lot more freedom, but much of the extra family income goes to the banks.
3 comments:
Have you any view of the Liberty Trust interest free loan scheme?
am i able to take a car insurance company to small claims court? The insurance provider denied my claim, (I would go ahead and take to blame driver to small claims but I've no address to serve them or send a demand letter). Another driver was at fault however his particular insurance provider says there is actually a difference in this claims to make sure they need to take the word of their insured vs. my word. I do think they acted in lousy trust and did not accomplish a proper investigation would this often be a valid claim in small claims court? I would like to have some at fault drivers insurance provider (not my own) to small claims with the damages to my car.
Haydn, I do not know anything about the people who run Liberty Trust, but the idea of pooling savings and taking turns to buy homes with interest free loans is an excellent one. We need to see more Christian communities doing this.
The building societies originally operated in this way in NZ, except that people could get their contributions out when they chose. This meant that it took longer for people to get loans. Unfortunately, they eventually morphed into ordinary garden variety lending institutions.
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