Banks say they love you and trust you but when you get there you find they’ve chained the pens to the counter. A client whose business had been sent to the wall commented the other day that being with the same bank for thirty years seemed to count for nothing. It is true that banks are ready to put aside a relationship of many years to get their money back. This does not make your bank the Great Satan although, as your finances worsen, it may seem that way. Let’s get expectations straight. What can banks do? They can enforce the loan against you and anyone else who has guaranteed your debt. So, for example, if you or your guarantor has a house, the bank can force you to meet the market. This might mean selling your property at auction for whatever price you can get, however low. Depressing stuff. In this scenario, the bank manager is not a Dr Evil or Mini Me (although the likeness can be uncanny). In fact, the bank manager is a very good source of information and wise counsel. They hav...
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