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 five years banks were giving mortgages to families and individuals that just could not afford them and missing payments. 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 get their act together and carefully consider who they give their money too.
I have listed down a few situations where the banks definitely should not be lending out.
1) People that are on small salaries, what the banks are not taking into account is the fact that people have a lot more monthly expenses then just a mortgage. They have the day to day costs of living to be taken into consideration. So even a person that is earning around 25k, should not be borrowing huge amounts of money.
2) How long have they been in their jobs? There are some people in this world that cannot be bothered to work and end up getting the sack. 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 to be honest noone really tells them any different, the banks seem to agree with them by handing over money.
3) One crucial aspect that banks should look at is the habits of an individual before they loan any money out. 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 just will not stop so lending them money would be a huge no no.