What position are the public in; should we stop borrowing money that we know we can't pay back?


The Finacial Crisis is becoming very popular now.

More and more people are being affected now, govenors, bankers and so much more.

Have you ever stopped to think about the fact that we, the members of the public are one of the many reasons why the Finacial Crisis even exists?

Well, I have, and I think I know why.

The members of the public are taking full advantage of the fact that you can "borrow" money.

They know they can't pay the banks back too!

Banks take the risk of "loaning" money to people they know can't pay them back.

Bankers are also to blame too.

Please share your opinions below.

Comments (5)

  • Olivia-Avatar.jpg Olivia @ Topical Talk
    12 Nov 2018

    Well done for doing extra research (and including the reference) plus asking some very thought-provoking questions! This shows excellent curiosity.

  • St-Josephs-Northfleet-logo-250x250.jpg energetic_conversation | St Joseph's Catholic Primary School, Northfleet
    12 Nov 2018

    In this point of view in which you've written the post in, I gather that Banks are to blame as they aren't careful enough with if the loaner can pay back the money or not. On the other hand, this was the CAUSE of the Financial Crisis. There could be a scenario where the Bank sees a person who has a good job and the person loans a lot of money... then quick as a flash the person loses their job and can't pay back. (I'm sure you realise how they lost their job.) There's not ALWAYS one person/thing that's guilty in a matter, in this case it's the Financial Crisis. I hope I have shown you that.

  • Ormiston-Bushfield-logo-250x250.jpg trusting_politics | Ormiston Bushfield Academy A | United Kingdom
    13 Nov 2018

    I agree that more and more people are being affected by the financial crisis.
    You then went on to say that the public are one of the many reasons the financial crisis even exits and I agree with you on that. For another statement you put that the public are taking full advantage of the fact that you can borrow money and they know they can not pay it back. But sometimes people need to borrow money to buy a house which in that case I would have to say that it is righty that they borrow money because I know not many people would have hundreds of thousands of pounds sitting in their bank account. Also houses are getting more expensive every year.

    I do not think that people should borrow money to go on a nice holiday or something like that. I think that if you do not have the money to go on holiday then you SHOULD NOT BORROW IT!

    You then went on to talk about how banks take the risk of loaning money to people they know can not pay them back. I think that people inn financial difficulties should not use a bank to get out of that difficulty because that hardly works because then they would just enter dept. If they are in financial difficulty they should try to find another job and until then go to a place like job center which would give you benefits. I think that banks should have a background check done on everybody they would loan money too so they know information about their previous bank loans whether they payed it back and also about their pay. Banks should also be informed by the person wanting the loan as to what they are going to do with it. Then the banks should make a decision whether or not to let them have it.

    Overall I think that banks need to have more information about who they are loaning to and that the public need to start being more careful about loans and debt.

    1. Tiff-Avatar.jpg Tiff @ Topical Talk
      trusting_politics's comment 13 Nov 2018

      Some people work very hard and still find themselves in financial difficulty. Is it fair to say that they can't borrow any money? what might the consequences be about this?

  • Elaine-logo-250x250.jpg openminded_skill | Elaine Primary School
    03 Dec 2018

    This is an interesting discussion and I had to think very hard about this as I have two perspective, as a result I have decided to write a balanced argument:

    Many people of England work very hard for the money they earn, yet because people have to pay rent; by food; and purchase
    essential items money can be gone very quickly. Consequently, is it not fair for people to borrow money from Banks such as, Santander and Lloyds Bank, as long as the money that has been borrowed has been payed back in a reasonable amount of time? Also, when banks are lending out money to those desperate for it they eventually pay back the correct amount of money meaning banks earn a greater amount of money back than they actually sent in the first place because, as we learnt in our BNC lesson, residents who borrow money from banks also have to pay interest back as well as their original money that has been borrowed . If you were struggling with money, yet you put a lot of hard work into your job, would you not borrow some money from the bank?

    According to https://www.citizensadvice.org.uk/debt-and-money/borrowing-money/, it's important to make sure you will be able to keep up the repayments, otherwise you could be taken to court and might even lose your home or other valuable possessions, this is why paying back the money as there are serious consequences.

    On the other hand, due to the fact of the public borrowing money from popular banks this could be one of the reasons for the crisis (I am not saying that it is w yet it could have its part in the situation) as a large percentage of society do not pay the interest AND the actual money back to the bank, banks are now losing a lot of money, resulting in a large amount of people not getting the correct amount of money they should be. Therefore, this may be the cause of the tremendous financial crisis (like I have said before this may not be the reason, just my opinion). I think that the government/ bank of England should possibly take the fact of people not paying the interest and the money back into deeper consideration .

    Let me know your opinion on this discussion! I really enjoyed researching this topic and I would love to hear your opinion.

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