There was a recent article on EU Economy about a Greek family who stopped paying off their personal debts because they just couldn’t keep up with the payments. The family still owes a year’s worth of school fees at the private international school their daughter attended, which the father admits is not a priority. He is no longer embarrassed by his inability to pay, he says, because so many other parents are in the same situation.
Such strategic defaults have become a way of life among Greece’s formerly affluent middle-class. Many borrowed heavily as local banks competed to offer consumer loans at accessible interest rates after Greece joined the euro in 2001.
When the crisis struck they resisted changes to their lifestyle, convinced that it was only a blip on a continuous upward path to income levels matching those of Italy and Spain.
But they have since been forced to make harsh adjustments. With their own savings depleted and the country’s immediate future so uncertain — will Greece default on its debts and leave the euro? Many have simply stopped making payments altogether, virtually freezing the economy. Many people, like the Greek family focused in the EU Economy article, who used to have high paying jobs have sold what assets they can at knockoff prices just to help pay off their debts.
“I still owe money on the car and motorboat I can’t afford to use. Even a holiday loan I’d forgotten about,” he says. “I’m living with my mother looking for work and waiting for the bank to come up with another restructuring offer.”
After six years of living in straitened circumstances, middle-class Greeks have also grown accustomed to shedding valuables inherited from their grandparents.
“There’s a big underground market in family heirlooms . . . many people feel a sense of shame at having to part with them so it’s not much talked about,” said Angelos, an appraiser for a Geneva-based antiques dealer.
“For buyers there are opportunities that only come along when there’s a real economic upheaval in Greece it hasn’t happened since the Second World War,” he adds.
This trend of reneging on personal debt payments is also prevalent here in Canada for many families. Our economy may not be the cause of such debt, however change of employment, overspending and additional bills can most definitely cause overwhelming debt.
There are ways to get out of debt. The endless payments of interest can be stopped. The first step is to take control of your finances, pay off the smaller debts or the debts that carry the highest interest rate. We can offer assistance in this matter. Through a free consultation, we can advise on the priority of debts to pay first. We can assist in getting your debts paid in amounts you can afford. We can get you out of debt so you can start living with a clean slate. Give us a call today to see how our debt relief program can help you. Call us at 1-866-873-6222 or visit us at www.occa.ca. Start living debt free today!
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