Do you think the financial meltdown will affect you personally? If so, how?
This was a question posed to individuals across Canada by Metro News.
“I don’t think so. I’m a student and I don’t have any investments. I think maybe if the banks went under, I wouldn’t have to pay back my credit card debt.”
age 27, Toronto
Granted Brad, I do detect a hint of sarcasm here, but rest unassured, a bank failure will not alleviate you of any obligations. Even if a worst case scenario finds one of our financial institutions entering into receivership, the receiver has a fiduciary obligation to the debt-holders to maximize their return on investment. This means that the assets, among which include the credit card division that has extended liens to you, will be sold to another organization in order to repay the debt holders (even if only a fraction on the dollar).
Best advice: don’t put all of your eggs in the ‘banks going under’ basket. Better to develop a real strategy for managing your debts.