As I have written in the past I have a massive backlog of unfinished ideas, and thanks to a vile chest infection, I am dipping into this odd array of unfinished ideas. This one, I think crosses a few lines (i.e. in poor taste), but it does have a point to it.
I was trying to think of how banks might slow down the tsunami of debt that seems to be accumulating with all of these cheap interest rates that we currently have in Canada. I have come up with a brilliant† idea that will never (ever) be implemented (because banks make money if you are in debt, so this fantastic idea is counter to their profit line).
† – Where brilliant could be translated to sarcastic as well
The essential technological step needed is erasable tattoos, which are being developed (well, the inks are) as we speak.
Here is the idea, you go into your local banker, and you want to borrow a large sum of money, and your banker offers you the following
Get the word Debtor tattooed on the back of each hand, and you can have the loan for a 25% discount on the current lending rates. When the debt is repaid, the tattoos are removed. However, if you show up with one of these tattoos, you are automatically refused.
There would have to be subclauses about if you tried to alter the tattoo, or hide it in some fashion you’d have to pay a penalty but wouldn’t this be a great idea?
Too harsh? All it would do is drive folks to alternate lenders. I doubt it would slow many folks down.
My list of debt commentary articles is quite long, so let’s stick with the basics.
- Three Solid Ideas For Your HeLOC is a misdirection title. With interest rates going up, home equity lines of credit are becoming heavier anchors on your financial life.
- Pay Day Loans? Absolutely, positively NO! Go talk to a licensed insolvency professional before you do this.
- Surreal Paragraphs Found in Credit Card Bills, if you carry balances on your credit cards, you are in trouble. Look at their estimate for how long it will take to pay off the debt on minimum payments.
- A Mortgage Changes You, which is very accurate. When you get a mortgage, your life changes, and it will be a major element of your financial decision-making process.
- Make More by Reducing Debt with some elementary (maybe naive) arithmetic.
- Straight Talk on Your Money is not just a good book (and podcast). It explains how debt can get out of control quickly.
- Debt-shaming: Debt is Bad, but You Aren’t having a poke at the “influencers” who say my commentaries about Debt being BAD is debt shaming.
What about if they get the loan for a discount in exchange for signing a contract they will go to an old school debtor’s prison if they default? I’m sure the spectre of prison back in the day was much scarier than signing the forms to declare personal bankruptcy. People would surely think twice before taking a loan.
Debtors prison would be an interesting concept, and if they legalize marijuana, there would be a lot of open spaces in the exiting ones. This could be a job growth opportunity for Kingston and other communities? (OK, bad humor)
Hope your recovery is fast and yes you would make a terrible banker. Personally I would like to see personal finances taught at an earlier age. If we’re now introducing sex-ed in grade 3, surely we can introduce personal finance at some point.