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> How do you propose a third party can establish your ability AND desire to pay back a loan Ability is simply by asking for a recent payslip. For things like m

by Aaargh20318 3y ago

> How do you propose a third party can establish your ability AND desire to pay back a loan Ability is simply by asking for a recent payslip. For things like mortgages they usually ask for a signed statement from the employer as well (they declare that if employee continues to function as (s)he has been they have no intention to end their employment). Desire doesn’t really factor into it. If you don’t pay your debt they will get their money one way or the other. Personal bankruptcy is not a thing over here, you cannot walk away from debt. > Maybe you CAN afford a loan, but WILL you pay it back? Of course you will, you have little choice. Worst case they get a judge to simply take it out of your paycheck.

kccqzy 3y ago
I still don't understand. Of course getting a judge to take it out of your paycheck is possible in America too. But preferably before a bank loans you money, they want to determine whether they can rely on you paying back on your own or whether there's a high likelihood they will get a judge involved? What if the bank doesn't want the hassle of involving a judge? How do you even measure the probability of needing to get a judge involved? Then it's back to credit scores.
- Aaargh20318 3y ago
  Obviously it’s a last resort. The point is that someone who can afford to pay and doesn’t is very uncommon as this would cause a lot of trouble for the person in question.
  - kccqzy 3y ago
    Then you might as well say that in the first comment. In the U.S. banks certainly already look at your income to make sure you can afford to pay. Credit scores just measure willingness to pay. And before AutoPay became popular, they also measure whether a person can consistently take care of their own affairs and remember to pay.
    - Aaargh20318 3y ago
      Not sure what autopay is, here you usually give the lender permission to directly take the money from your account. It’s part of the contract.
      - munk-a 3y ago
        That's essentially autopay (in effect). Autopay is a cron job for your bank account "Send 200$ to this lender every 15 days" or something similar.
        Aaargh20318 3y ago
        We have those too, but that's not exactly the same. Say you have a mortgage with a variable interest rate. A repeated scheduled transaction won't work because the amount can be different each month. Same goes for things like energy bills if you have a flex-contract where you pay the actual amount used each month. In my case they will just take whatever amount is due out of my bank account each month.

kccqzy 3y ago

I still don't understand. Of course getting a judge to take it out of your paycheck is possible in America too. But preferably before a bank loans you money, they want to determine whether they can rely on you paying back on your own or whether there's a high likelihood they will get a judge involved? What if the bank doesn't want the hassle of involving a judge? How do you even measure the probability of needing to get a judge involved? Then it's back to credit scores.

Aaargh20318 3y ago
Obviously it’s a last resort. The point is that someone who can afford to pay and doesn’t is very uncommon as this would cause a lot of trouble for the person in question.
- kccqzy 3y ago
  Then you might as well say that in the first comment. In the U.S. banks certainly already look at your income to make sure you can afford to pay. Credit scores just measure willingness to pay. And before AutoPay became popular, they also measure whether a person can consistently take care of their own affairs and remember to pay.
  - Aaargh20318 3y ago
    Not sure what autopay is, here you usually give the lender permission to directly take the money from your account. It’s part of the contract.
    - munk-a 3y ago
      That's essentially autopay (in effect). Autopay is a cron job for your bank account "Send 200$ to this lender every 15 days" or something similar.
      - Aaargh20318 3y ago
        We have those too, but that's not exactly the same. Say you have a mortgage with a variable interest rate. A repeated scheduled transaction won't work because the amount can be different each month. Same goes for things like energy bills if you have a flex-contract where you pay the actual amount used each month. In my case they will just take whatever amount is due out of my bank account each month.