www.iva.co.uk

With the economic climate we are in, we often hear of banks going under the most famous one, is Northern Rock.

One for the experts - Are we to blame for this becuase we dont offer 100p to the pound, plus no interest or charges.

Or do banks budget for this and its a low % anyway.

Or are things going to worse with IVA's been on the hope.

I am just curoius

If you are like me you will have paid a fortune in interest while trying to juggle your finances for several years before realising that you cannot continue to do so,therefore I have little sympathy for banks who are struggling. Also the fact that when I was in deepest doodoo my banks best idea was to offer me more credit,would make me think that they took a gamble on making more money out of me and it backfired big style.

Banks will cope,but their big bosses may just find they only get a 6 figure bonus this year!!!

The amount of written off unsecured debt hardly makes much difference the the banks' bottom line results. At present the banks are suffering from an inability to lend, given the lack of funds available for inter-bank transactions, and this is one of the main reasons for the current difficulties as well as some reckless lending in the domestic mortgage and buy to let marketplaces.

IVAs are not the causes of the bank's failures. IVAs are returning funds to them greatly enhanced from that returned in bankruptcy. The banks are suffering because of problems in the secured market worldwide and not because of a few defaulted credit cards.

When you took out your credit and store cards the interest often reached 30% and the bulk of these borrowings are repaid in full with interest. Some default and some are written off but overall it is profitable for the banks[they also get paid from the retailer].

However, in America they loaned vast sums of money to people with no possibility of ever repaying in the believe that properties would always increase in value. One loan was a NINJA loan-no income, no job, no assets. Should have been called a Kamikaze loan.

Do not feel responsible for the banking collapse because it is not your fault or that of IVAs.