Same thing happened to me when I left university.
My parents had to Guarantee the loan. Pissed me off big time...
BUT once again 2 sides to this.
Australian Banks are much more risk averse than many other countries. This is actualy a good thing and again one of the reasons we have not had a financial melt down or housing bubble burst.
Think about why you would loan money for a house vs car.
A car depreciates 20% the day you drive it away and continues to depreciate its whole life. It can be stolen or crashed.
A house on the other hand is typicaly a secure loan becuase it attached to a physical property that over time appreciates.
Imagine a situation where our banks loaned money to anyone who could in reality probably not afford to repay it or even if they could could not if even something small in their personal circumstances or external environment changed. Oh wait thats what happened in America where greedy banks AND greedy public loaned money with no security deposits. ie loaned 100% of the value of assets. When customers started to default on loans the whoel house of cards came crumbling down.
Australian Banks legally cannot do this. Our industry is regulated to ensure we have a certain %of real money to cover debts.
At some point people also need to take responsibility for their own situation. If you cant afford something dont buy it! If you take a loan out you cant afford to repay when intersts rates rise by .06 of a percent then you cant affford it. Sure Banks compete and offer all kinds of financial products to people. Its people who choose to buy them though.
Shall we bash all the sponsors on the right of this page for advertising and forcing us poor astronmers to buy telescopes and accessories we cant afford ? And shame on those astro stores who make 20% to 30% margin on the gear they sell you. How dare they make such a large profit. :-)
On a serious note, if your Daughter earns enough to afford the loan then leave her husband off the application and she wont have a problem.
Anyway I will now definately bite by tongue and shut up as I get the strong sense no amount of logic or reason will be welcome in this thread.
Quote:
Originally Posted by FlashDrive
Just had a phone call from my daughter Rebbecca ... she recently returned from London after teaching in one of the High Schools.
She just scored a permanent job at a ' Private ' High School at the Northern end of the Gold Coast .... now get this :
The banks won't lend her $25K to purchase a new car because her Husband who is also a teacher .. hasn't found himself a job yet.... he's looking for a teaching job also.
Rebbecca is on a pretty good 'wicket' pay wise ( private school ) ... yet they would gladly give her a loan of $400K to purchase a house.... but not the car....????????????????.
How ' bent ' is that .... let's nail this young lady down with a debt she does not even want ... !!!
The Banks are so out of touch today.
BTW .... she walked away shaking her head .. ( her words )
Flash 
|