Take Responsibility, Take Control

I read in last Sunday Age, the story of Roger Brown and his proposed class action against the banks. His action alleges the banks have breached the Competition and Consumer Act and the National Consumer Credit Code by lending money to people they knew had no capacity to pay it back.

Having at one point in my life worked for a large bank, I can tell you, in Australia at least, they are pretty risk adverse. The banks are better off with 25 years of interest payments than trying to get what they can by selling your home.

This is why you need to provide proof of salary, proof you have insurance etc. So the idea they have knowingly loaned money to people without the capacity to pay it back is hard to imagine.

According to the article, Roger Brown has been quoted as saying “many Australians are facing financial hardship through no fault of their own because they shouldn’t have been given a home loan in the first place.”

Interesting term; “through no fault of their own”.

We as the customer have a responsibility to know full well what our financial position is. And if we don’t, going for a home loan at any bank will enlighten you. You will be asked to account for every dollar you earn in an attempt for the bank to determine whether you will have the capacity to pay back the loan.

Now, don’t get me wrong – life happens. People lose their jobs or family members become sick etc. I know – I’ve been through it!

Most banks have actions the customer can take in these situations well before it comes to foreclosure. But one has to ask for that help.

“Ask and ye shall receive”

Outside of these life-taking-over events, I question “through not fault of their own”.

It seems increasingly, society is looking for someone else to blame rather than stand up and take responsibility for its own actions.

Larry Winget, the “Pitbull of Personal Development” puts it like this :

"You’re broke because you want to be."

The Phils-osophy

Please be responsible and be in control of your life. While there are life-taking-over events, there are also taking-control-of-my-life solutions.

One of my favourites is income protection insurance. It has been around for many years and there are many varying policy inclusions and exclusions. There are of course other insurances or products that you can avail yourself of. Talk to a financial advisor or insurance advisor on what is best for you and your situation. And before first home owners pipe up with this is just another salary impost that stops them being able to afford their first home – imagine how it would feel to lose your first home because something happened, you had no insurance and no way to repay the loan.

I’m for people succeeding and taking responsibility for yourself and taking control of your life is the fast track to success.

To your success,
Phil.
http://www.philipwagner.com.au/