Give or take: Like it or not, paying down debt

Some of the coverage about mortgage debt has focused on people who have, by choice, simply decided to walk away from a mortgage (often because the borrower owes far more than a property is worth). In this morning’s New York Times, there was a story that looks at the other extreme: The number of debts which are being forcibly repaid through legal action and garnishment of wages.

Implications: In some situations, it appeared as if a cultural shift had taken place, in which it was all-of-a-sudden acceptable—if not routine—for debtors to not repay the money they owe. (Whether it’s a person walking-away from a mortgage or a company going through reorganization, we’ve seen a lot of commitments “modified” or ignored over the past several years.)

In other situations—and this NY Times story is a good example—payment is still quite expected.
Could companies and consumers see changes in the credit system as one result of the great recession? What might those trends look like?

• A more distinguished difference in price or payment plan between well-qualified buyers and less qualified?
  
• More incentives/discounts for cash?
  
• More “saving up” to purchase a big-ticket item, versus “enjoy now, pay later?”

What else?

Mike Anderson