Croatia rolls out debt forgiveness for citizens

[simple simon]

Let this be the start.... (for those who do not know, a general planetwide banking reset is expected soon. In theory the biblical style jubilee / debt relief should be on the cards for all of us who have bank debts - credit cards, mortgages, loans, etc - but with laws for Cyprus style bail-ins having been passed everywhere there is a danger that instead of ordinary people only the banks will benefit. This event suggests that best possible outcome may yet come to pass).

Simon


Croatia rolls out debt forgiveness for citizens

People can apply to have their debt erased under a one-time measure passed by the government last month

Croatia’s poorest citizens may start applying today to have their debt erased under a one-time measure passed by the government last month.

About 60,000 people with low incomes whose bank accounts have been frozen for at least a year and whose debt doesn’t exceed 35,000 kuna (€4,500) can participate, according to the government’s website.

Applications are now open only to those who live on welfare, while debtors whose income is no greater than 2,500 kuna a month for a single person household or 1,250 kuna per family member may start applying on April 2. The deadline is June 30. Prime Minister Zoran Milanovic’s government introduced the measure ahead of this year’s general election after his Social Democrat party fell behind the opposition Croatian Democratic Union in opinion polls.

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More at link:


http://www.irishtimes.com/business/economy/croatia-rolls-out-debt-forgiveness-for-citizens-1.2088257

 

[Bletchleyite]

Let this be the start.... (for those who do not know, a general planetwide banking reset is expected soon. In theory the biblical style jubilee / debt relief should be on the cards for all of us who have bank debts - credit cards, mortgages, loans, etc - but with laws for Cyprus style bail-ins having been passed everywhere there is a danger that instead of ordinary people only the banks will benefit. This event suggests that best possible outcome may yet come to pass).

1. I doubt it.

2. Best in whose view? I can see big benefits to cancelling the debt of third world countries, but I don't see why I shouldn't have to pay what I have borrowed for my house and car.

Neil

 

[deltic]

This is a highly targeted measure which is unlikely to be rolled out on a much bigger scale anywhere soon. For every borrower there is a lender - if no-one has to pay back what they borrow no-one will lend and the result will be a massive depression and unemployment

 

[richw]

1. I doubt it.

2. Best in whose view? I can see big benefits to cancelling the debt of third world countries, but I don't see why I shouldn't have to pay what I have borrowed for my house and car.

Neil

2- That is secured debt you mention. I believe unsecured would be written off in the plan only for people with no equity is assets. Effectively bankruptcy is what Croatia is doing.

 

[Bletchleyite]

2- That is secured debt you mention.

The house is, but I tend to buy cars using unsecured personal loans.

I believe unsecured would be written off in the plan only for people with no equity is assets. Effectively bankruptcy is what Croatia is doing.

I guess that is effectively it - an easier means of declaring bankruptcy.

Neil

 

[Clip]

Sounds all well and good but will the people whose debt is wiped still then be able to apply for more credit and then find themselves in the same position in a few years?

 

[Bletchleyite]

Sounds all well and good but will the people whose debt is wiped still then be able to apply for more credit and then find themselves in the same position in a few years?

If it's bankruptcy, I would guess not.

Neil

 

[Johnuk123]

Is this thread some sort of joke.

Nobody should expect any debt whatsoever to be wiped off, it isn't going to happen and anybody who thinks we're all going to be debt free soon is living in a dream world.

 

[Tetchytyke]

Sounds all well and good but will the people whose debt is wiped still then be able to apply for more credit and then find themselves in the same position in a few years?

Research from Grant Thornton shows that people who've been through these sorts of debt solutions (like an IVA or a DRO) don't tend to return back to the same position. The pain of dealing with the debt is fresh in their mind.

What does happen, though, is that the banks and credit card companies bombard them with offers of credit the day they clear their debts. The credit companies see them as a good profit line: they expect to be charged more interest but they are less likely to default on payments.

The Croatian thing isn't that big a deal, we've had a similar principle in the UK since about 2010. A Debt Relief Order will write off all your debts, so long as you owe less than £15k, have a low income and have no assets. For bigger debts, or people with assets, you can do an IVA which writes off any outstanding debts after five years.

Never mind "it won't happen in the UK", it does happen in the UK, and has been happening for years. I don't see many destitute bankers on the streets, do you?

 

[Johnuk123]

Never mind "it won't happen in the UK", it does happen in the UK, and has been happening for years. I don't see many destitute bankers on the streets, do you?

I said we aren't going to have a banking reset which is what the thread is about not a few individuals having debts written off that's a completely different thing altogether.

 

[Busaholic]

How much is our National Debt? How long has it being going? How much has it increased since 2010? The last of our borrowing to finance the Great War has just been paid off, I believe, no doubt by taking out another loan. The old adage that if you owe your bank £1,000 you've got a problem, £1,000,000 and it's theirs has never been truer. If a whole nation has to take this to heart, good luck to them I say. History will vindicate this approach.