Personal - #501 - #79 - How to avoid economic recession – At HOME!

How to avoid economic recession – At HOME!...... Reasonable question?

“Use it now, pay for it now!”..... or get a loan at an interest that you can afford now and later when things are not so rosy. Get terms that you like and can understand. You’re the one that’s going to pay!

You must understand the written contract before you sign it!
A “Home Mortgage” is a written contract. You and your collateral (i.e. your home) is bound by the terms of this contract.

“Now and Later” are not idle terms. They mean in times of depression, recession, divorce, death, and all the negative things you can think about! “Get a loan with terms you can cope” in good times and bad times. The paper you signed, the Home Mortgage, will be all controlling! You will not be able to change it unless there is a separate clause in it which shall also “control” your actions. Understand, understand!!!!

“Use it now…pay later!” We have been hoodwinked into a belief system. It’s a system which is unsustainable. It is a system that no one else in the world uses. It is a system that is both dangerous and unfair. How can you use something that isn’t yours?

It is time the word “CREDIT” is introduced. “Credit” is what someone with money gives someone without money to “USE something NOW!” (that you do not now own). In order to profit from this transaction, the party “with the money” charges interest and demands a collateral for the money to be leant. The terms and conditions are in writing. Remember “In good times and bad”! You have signed a Contract. This Contract will control your behavior. The collateral (i.e. your home) may be disposed of if you do not act according to the terms of the Contract you just signed. (In which, by the way, you have also promised to abide by its terms and conditions.) This is the meaning of a signed CONRACT.

If, in the meantime, you haven’t the ability to “pay as you go”, you use “credit” so you can “use now” what you can’t quite “pay for now”. Someone, with money, will offer you “credit”. Be aware that this party offering “credit’ does so he can make a profit and be sure he has title to the asset (collateral) offered at a price he is willing to take. Note that the price he is willing to take is not what you offered! If he expects the collateral to go up in price he will offer more. If he expects the price to go down he will need a “cushion” for his investment. In any case the price will be established in the “Contract”.... Understand, understand the terms!

“USE IT NOW and PAY LATER”.is what we have become accustomed too. The use of “credit cards”, “Mortgages’ and “CREDIT” of all kinds is the system we have become used to!

“BEWARE!!!”