Sir, – I am quite surprised there has been no comment on the potential impact “debt forgiveness” for private mortgage holders by the Irish banks would have on the credit ratings of those whose loans were forgiven.
Surely it must be made clear that should banks “forgive” the debts, it will become an almost certainty that the credit ratings of those involved will plummet. For those who are on their first mortgage, this would have a devastating effect on their ability to ever gain another credit card or car loan, never mind another mortgage.
What’s worse, the longer term effect, the ability to ever be a guarantor of their children’s mortgages would also be called into question. The banks are not 100 per cent to blame for financial woes of private mortgage-holders. People must remember that it was they themselves who ultimately accepted the offer from the banks; very few people stopped to ask “Can I really afford this?”. Of course banks were going to lend the money, they were making money; but everyone just wants someone to blame other than themselves.
I would urge that people communicate with their mortgage provider to work on either extending the period of their loan, or pay interest only while they get back on their feet. Austerity measures must be applied by both the Government, and the public’s private spending. – Yours, etc,