I have read somewhere that even when there’s a depression, the debts you owe is not forgiven. The lenders during the Great Depression came knocking even though the people had no jobs or houses - or any equity.
Does anyone here promote the idea of paying off ALL debts prior to our next Great Depression? (We’re in one but expect it to get much worse). I have some students loans I can pay off but with limited resources I can definitely use it to buy some previous metal and such. Should I pay off my debt first or just simply buy tangibles?
Please lend me your thoughts.
Sovereigrn debt and private debt are two very different things. Its not as if you sold a bond; you took out a loan. If a bank fails and its assets (your debt) are sold; the new owner of the debt will want it paid back. If someone has no way of buying it back they will reduce the amount owed to a manageable amount. However, if you can pay it back you will be expected to.
If you are living in the US, it is likely that you will see high if not hyperinflation within the next decade. This would reduce your debt in real terms. So holding out on your debt as long as possible would probably be a good thing. However, you should be very carefull where you put your savings in the mean time.
That’s EXACTLY the same opinion I have towards debt - of what the inflation will do to it.
Any other thoughts?
Thank you!