Laying off staff

Read in the papers about a particular local bank laying off a number of their staff as their 3rd quarter profits dived. It was reported in the papers that some of the staff axed had worked there for about 2 decades. Needless to say, for these group of people in that age category, finding alternative employment is really not easy. What really irked many was the fact that the staff union was only informed of the 'hit list' just 3 days ahead. Even the labour chief expressed his disappointment at the bank's decision.

Was chatting with a friend about this issue and he said that hopefully those laid off did not over commit themselves when purchasing property or cars. We both know of people who will live way above their means by purchasing some posh condo or landed property and taking a huge loan over a long period. Ditto to that of their vehicle hire purchase. Knowing that they wisely should just purchase what they need, due to reasons like image, status etc, they go ahead and buy something way above. If their job is stable and earning sufficiently to maintain these 2 huge liabilities, well and good. But if they happened to be like those axed staff, that spells trouble. Once you fall behind in your repayments, that legal loan shark will have no mercy to repocess or seize your property.

The underlying lesson is simple. Live at or better still below one's means.