How can debt be helpful in aquiring credit?
Mr. Singleton said that when a company pays back their loans it gives them a good credit record. But in business one of the biggest factors in how much credit a certain business has is the assets that the company has. In other words the more the bank could sell the business for if they can pay back the loan the more that the bank is willingness to loan to the company. His company deals a lot with companies that can't pay off their loans and they try to make sure that if they are unable to get the company running again the company has enough assets that they can sell the company and not lose any money.
How has your company used debt to your benefit?
Mr. Singleton explained that his company often takes out a loan to pay for a loan pool that they want to buy and being in debt helped them to be able to buy loan pools that they wouldn't normally been able to buy and this has helped his company make money. With this Mr. Singleton talked to us about how interest on a loan can become very expensive. The higher the amount the loan is for and the more high risk the loan is the higher the interest rate. The interest alone on America's national debt is its own problem.
Do you think that America will ever be able to get out of debt?
Mr. Singleton said he does not see the United States ever getting out of debt. He also talked about interest rates and how the government is spending lots of money on a temporary fix for the economy. Unlike Mr. Vogel Mr. Singleton see it as a real possibility that the government will eventually be forced to default on its loans. He doesn't see this happening anytime soon but he believes that eventually America will be forced into that position.
What are some of the consequences of having too much national debt?
Mr. singleton said the the consequence we are most likely to see in the near future is the loss of many welfare systems. He believes that it is likely that by the time we are adults social security will not exist because of a lack of funding or the program. The loss of such a large program may seem a bit far fetched but with America's current spending a life without social security is a very real possibility.