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What Would Happen To Our Economy If Everyone Stopped Paying Loans and Mortgages

by Jim ONeil on January 26, 2011

in Personal Finance Tips

Many people consider their loan and mortgage payments to be an enormous financial burden. In some cases, they think about ceasing to make these payments and wonder what would happen if everyone else followed suit. Would the world survive and revert to a barter economy or would the result be disastrous?

We have only to look back a few short years to predict what  is likely to happen. During the time of loose credit, everyone seemed to be scooping up homes, cars, boats, and other pricey assets. It is safe to say that many of these folks did not pay for them with cash. Purchases were financed and the high volume of this financing eventually led to a global financial crisis.

Many people did not voluntarily decide to stop paying their mortgages or loans. However, they may have overleveraged themselves and when they became victims of layoffs due to economic contraction, they did not have enough money. When faced with a decision between eating or paying the car loan, most people will choose eating.

These folks were in large part to blame for the situation that resulted because it was their acceptance of excessive credit that caused banking systems to crash. Once that happened, things just went

downhill and eventually, came back to bite them. However, only the most restrained consumers will refuse credit when it is so easily accessible.

This recession was the result of only a segment of the population failing to pay loans and mortgages. If all of us stopped paying, the results would be much worse. Therefore, it is important that we pay for what we purchase, no matter how long it takes. With a multitude of financial management tools at our disposal, we can make even those pesky mortgage and loan payments easier to swallow.

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The bailouts and stimulus are part of the agenda to destroy our economy and embrace global socialism via the new world order and the North American Union. Another part of the agenda is amnesty, outsourcing, "gun control", and big government represented by global corporations and the UN.
AN EU style trading block and poverty will be the result.

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