As it is obviously clear, we know that we are in the middle of a huge financial crisis and the main culprit for this is the banks. Over the last decade banks have been giving ridiculous amounts of money away to people that cannot afford to pay it back. This has all led to the demise of the banks and businesses that were relying on them failing too.
I have always said that if you have not got the money to buy something, them simply do not buy it ans wait until you are in a better position? I mean lending huge amounts of money. So this is why banks need to buckle up and start thinking carefully about who they give their money to in the future.
I have listed down a few situations where the banks definitely should not be lending out.
1) Folks that are on very minimal wages, what the banks do tend to turn a blind eye to is the fact that people have a massive amount of outgoings on a monthly basis. They have the day to day costs of living to be taken into consideration. So someone that is earning 30k in my view should not be borrowing huge amounts for a home.
2) How long have they been in their work place? There are a lot of people that hate working and end up getting fired from every job. These people then make up their minds to look for a job after a year and as soon as they find one they think they are rich and rush out to get a mortgage and other financial commitments. And in a truth, no one can be bothered to tell these people any different, rather the opposite actually, as what the banks do is just hand over the money.
3) A very important aspect that the banks should look at is the lifestyle of every individual. How many times have gambling addicts got given a mortgage and car and then blow there monthly repayments on playing online poker or roulette. Addicts can not control themselves, so lending them money is a very bad idea.