# Write to your bank



## BradK (28 September 2008)

Hi all, 

I just wrote to my bank (Commonwealth Bank) politely informing them that I could not give a rat**** about their 'overseas funding difficulties' nor their bottom line.

Now that Labor have given this $4 billion life line to non-bank lenders, I will be off to a non-bank lender (the IMB)  after the rugged treatment over the past 9 months - IF THEY DONT PASS ON, IN FULL, next months expected interest rate cut. 

If the shoe were on the other foot... I think all mortgage holders should write to them and let them know that we, the people, are BACK!  - thanks to Swan or Turnbull, or whoever - I dont care. This forces competition back into the bank sector. 

Before anyone goes on about 90 Bank bill rates... or international money markets... or credit freezes... I know I know I know  I just dont give a ****. Spare me the lecture. 

Brad


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## Nyden (28 September 2008)

You may just be counting your chickens before they hatch ... next months rate decrease is anything but a guarantee. Many (myself including!) are still calling for an *increase* in interest rates, so - perhaps I should write insisting that they not pass on any :

If the average person cannot afford to pay their mortgages at the current rates; it only stands to reinforce the notion that house prices are overvalued; and perhaps many have unfortunately overpaid. Re inflating it all is not the answer either; bring on the deflation!


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## xoa (28 September 2008)

Cheap credit is a right, not a privilege. 

Don't those bastard banks know we need to buy plasma TVs and investment properties?


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## BradK (28 September 2008)

Nyden said:


> You may just be counting your chickens before they hatch ... next months rate decrease is anything but a guarantee. Many (myself including!) are still calling for an *increase* in interest rates, so - perhaps I should write insisting that they not pass on any :
> 
> If the average person cannot afford to pay their mortgages at the current rates; it only stands to reinforce the notion that house prices are overvalued; and perhaps many have unfortunately overpaid. Re inflating it all is not the answer either; bring on the deflation!




I have a VERY low mortgage. So much so, that I just spent 6 months in Europe with the family on a teachers salary. THAT is how low it is. 

Its the principle of the thing. They have played hard ball with us and now is the time to shove it back to the man. 

Write 
Brad


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## chops_a_must (28 September 2008)

BradK said:


> I have a VERY low mortgage. So much so, that I just spent 6 months in Europe with the family on a teachers salary. THAT is how low it is.



Pay the ****er off at cyclical lows, rather than spending on another luxury then.

Christ some people are dead heads...


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## Nyden (28 September 2008)

chops_a_must said:


> Pay the ****er off at cyclical lows, rather than spending on another luxury then.
> 
> Christ some people are dead heads...




Exactly. It's this sort of attitude that's gotten the whole system into the mess it's in! Folks going on holidays, buying new TVs - and making it all the more difficult for responsible people in the process.

Sorry, but to those with this sort of nonchalant attitude towards mortgages ... well, these sorts deserve all the pain they get when rates rise (and hopefully they will )


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## nunthewiser (28 September 2008)

Nyden said:


> Exactly. It's this sort of attitude that's gotten the whole system into the mess it's in! Folks going on holidays, buying new TVs - and making it all the more difficult for responsible people in the process.
> 
> Sorry, but to those with this sort of nonchalant attitude towards mortgages ... well, these sorts deserve all the pain they get when rates rise (and hopefully they will )




What a load of twaddle!.... If said person is able to service said mortgage even in times of high intrest , why no use it for the things in life that one would need a personal loan payable at a higer intrest instead....... Personally i own a house and land that i have recently borrowed on after being mortgage free , the reason being for subdividing and improvements . should i have stayed mortgage free and waited 8 years to save up to do this development then ?Should i have spent my savings To do it and left myself short for a rainy day? I do agree that a lot have caused strife through financial mismanagement but NOT all of us are that way inclined 
all the best
a subdividing nun now with a small mortgage which will be settled after sale of first block of land and if no sale can still pay off with no stress included..........geeeez


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## nunthewiser (28 September 2008)

PS........ as far as the borrowings are concerned , i am currently fortunate to have cash more than easy enuff to cover said development but still i borrowed , am i being irresponsible ? have i causedd the credit meltdown? will i go to hell because i use my funds as i see fit ?


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## chops_a_must (28 September 2008)

nunthewiser said:


> What a load of twaddle!.... If said person is able to service said mortgage even in times of high intrest , why no use it for the things in life that one would need a personal loan payable at a higer intrest instead....... Personally i own a house and land that i have recently borrowed on after being mortgage free , the reason being for subdividing and improvements . should i have stayed mortgage free and waited 8 years to save up to do this development then ? I do agree that a lot have caused strife through financial mismanagement but NOT all of us are that way inclined
> all the best
> a subdividing nun now with a small mortgage which will be settled after sale of first block of land and if no sale can still pay off with no stress included..........geeeez




But you must admit that someone complaining of increasing interest rates, at the same time as bragging about luxury spending, is farcical in the extreme.

It's that crap mentality, that has got us into all of these problems.


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## chops_a_must (28 September 2008)

nunthewiser said:


> PS........ as far as the borrowings are concerned , i am currently fortunate to have cash more than easy enuff to cover said development but still i borrowed , am i being irresponsible ? have i causedd the credit meltdown? will i go to hell because i use my funds as i see fit ?




Nope. You are being responsible.

But if you pushed your spending to a point where small movements in interest rates affect you substantially, you would be being massively irresponsible.


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## robots (28 September 2008)

hello,

what problems?

most wont be affected the slightest

thankyou
robots


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## Beej (28 September 2008)

nunthewiser said:


> PS........ as far as the borrowings are concerned , i am currently fortunate to have cash more than easy enuff to cover said development but still i borrowed , am i being irresponsible ? have i causedd the credit meltdown? will i go to hell because i use my funds as i see fit ?




LOL! Well said and "hear hear" 

I too will borrow as/when it suits me and use that money as I see fit!

Cheers,

beej


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## nunthewiser (28 September 2008)

chops_a_must said:


> But you must admit that someone complaining of increasing interest rates, at the same time as bragging about luxury spending, is farcical in the extreme.
> 
> It's that crap mentality, that has got us into all of these problems.




Yes. i have no complaints on intrest rates as basically a cost of doing buisness in my case , but yeah IF the intrest rates bothering them so much yeah dont pay it , pay off the mortgage instead of spending up and use ones own cash/savings instead to stop the whining


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## chops_a_must (28 September 2008)

nunthewiser said:


> Yes. i have no complaints on intrest rates as basically a cost of doing buisness in my case , but yeah IF the intrest rates bothering them so much yeah dont pay it , pay off the mortgage instead of spending up and use ones own cash/savings instead to stop the whining




Agreed.

And my and Nyden's point entirely.


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## jet328 (28 September 2008)

Why is Australia sooo obsessed with interest rates, bank fees & petrol prices? No other country that I know of has this absolute obsession like we do.

Are we really that loaded with debt? (dumb question)
I just can't understand why low interest rates are so fantastic. They punish savers, encourage speculation & misallocation of resources & push property prices higher. Just look at what's happening in the US due to Greenspan's ridiculously low interest rates after 911.


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## nunthewiser (28 September 2008)

chops_a_must said:


> Nope. You are being responsible.
> 
> But if you pushed your spending to a point where small movements in interest rates affect you substantially, you would be being massively irresponsible.




Totally agree ... the joneses borrowed to the hilt when intrest rates were low . needed the 54 bed mansion with the gold plated dunny seat to go with the beemers in matching colours and the boat that ornaments the driveway , oh dont forget the endless credit cards attached to make general life a lil easier  . oh whats this ??? rates rising ? wages stay the same ........ totally agree the "want it now" brigade that havent catered for the not so good times are gunna get smacked ..... the good bit tho is that here in sunny OZ they cant just say "WTF " and give the keys back . they responsible for the debt regardless.........


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## nunthewiser (28 September 2008)

Nyden said:


> Exactly. It's this sort of attitude that's gotten the whole system into the mess it's in! Folks going on holidays, buying new TVs - and making it all the more difficult for responsible people in the process.
> 
> Sorry, but to those with this sort of nonchalant attitude towards mortgages ... well, these sorts deserve all the pain they get when rates rise (and hopefully they will )




NO i didnt agree with this post as was a generilization towards ppl that borrow money


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## BradK (28 September 2008)

chops_a_must said:


> But you must admit that someone complaining of increasing interest rates, at the same time as bragging about luxury spending, is farcical in the extreme.
> 
> It's that crap mentality, that has got us into all of these problems.




Chops - you are a bit of a wanker... you just dont get it. I did my holiday out of SAVINGS.


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## nunthewiser (28 September 2008)

Nyden said:


> You may just be counting your chickens before they hatch ... next months rate decrease is anything but a guarantee. Many (myself including!) are still calling for an *increase* in interest rates, so - perhaps I should write insisting that they not pass on any :
> 
> If the average person cannot afford to pay their mortgages at the current rates; it only stands to reinforce the notion that house prices are overvalued; and perhaps many have unfortunately overpaid. Re inflating it all is not the answer either; bring on the deflation!




I do however totally agree with this one .


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## BradK (28 September 2008)

The whole focus of this thread was to stick it back to the banks. Not to get into some argument about if people want to go on holidays, buy plasmas, or new cars. 

I am very responsible with my cash - and have got myself into a good position. But, unlike some, I am not ignorant and self-righteous enough to judge others who find themselves in debt. How offensive and condescending some are. 

Go post on news.com.au! 

Brad


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## chops_a_must (28 September 2008)

BradK said:


> But, unlike some, I am not ignorant and self-righteous enough to judge others who find themselves in debt.



Yet not ignorant enough to realise there is a worldwide credit crunch on with lenders' rates influenced by overseas circumstances?


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## BradK (28 September 2008)

Nyden said:


> Sorry, but to those with this sort of nonchalant attitude towards mortgages ... well, these sorts deserve all the pain they get when rates rise (and hopefully they will )




 Bring back Pauline Hanson?? 

You redneck.


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## BradK (28 September 2008)

chops_a_must said:


> Yet not ignorant enough to realise there is a worldwide credit crunch on with lenders' rates influenced by overseas circumstances?




But ignorant enough not to know that in the MIDST of this world wide credit crunch banks were STILL recording record profits. Dead head.


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## chops_a_must (28 September 2008)

BradK said:


> Chops - you are a bit of a wanker... you just dont get it. I did my holiday out of SAVINGS.




Then pay it off and stop complaining.

And then you can have even more savings.


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## chops_a_must (28 September 2008)

BradK said:


> But ignorant enough not to know that in the MIDST of this world wide credit crunch banks were STILL recording record profits. Dead head.




Like HBOS, WAMU, ANZ, NAB and SUN you mean?


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## BradK (28 September 2008)

chops_a_must said:


> Like HBOS, WAMU, ANZ, NAB and SUN you mean?




Again, you missed the whole point of the thread completely.


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## 2BAD4U (28 September 2008)

I love debt. Got three houses, redraw facility (at max) and credit card. Meanwhile I have no savings and spend all my cash on holidays, PS3's, bikes, TV's, etc. Are interest rates hurting me? Yes. Do I complain? No. It was my choice and how I choose to achieve that balance between investing and lifestyle. Sure I could be better off if I didn't spend but then I wouldn't be having any fun.

No one should ever have any need to complain about interest rates. There is always enough information available for people to make informed decisions and plan for the future.  I can never understand how people get to the point that a 0.25% increase tips them over the edge. Perhaps it was the other 8, 9 or 10 before that they failed to act upon that caused the problem.


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## BradK (28 September 2008)

Nyden said:


> Sorry, but to those with this sort of nonchalant attitude towards mortgages ... well, these sorts deserve all the pain they get when rates rise (and hopefully they will )




Inflation and low interest rates make REAL debt more servicable... while inflatoin wipes out your savings ... ********. 

Brad


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## nunthewiser (28 September 2008)

2BAD4U said:


> I love debt. Got three houses, redraw facility (at max) and credit card. Meanwhile I have no savings and spend all my cash on holidays, PS3's, bikes, TV's, etc. Are interest rates hurting me? Yes. Do I complain? No. It was my choice and how I choose to achieve that balance between investing and lifestyle. Sure I could be better off if I didn't spend but then I wouldn't be having any fun.
> 
> No one should ever have any need to complain about interest rates. There is always enough information available for people to make informed decisions and plan for the future.  I can never understand how people get to the point that a 0.25% increase tips them over the edge. Perhaps it was the other 8, 9 or 10 before that they failed to act upon that caused the problem.




 LOL its always that last bourbon that gives the hangover they say


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## chops_a_must (28 September 2008)

BradK said:


> Again, you missed the whole point of the thread completely.




What? That we should do exactly what you say?

That businesses shouldn't take steps to stop themselves and shareholders losing everything?


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## jet328 (28 September 2008)

BradK said:


> But ignorant enough not to know that in the MIDST of this world wide credit crunch banks were STILL recording record profits. Dead head.




Why is this such a bad thing?
Ask an American if they'd prefer for their banks to be making profits.
Give me profitable banks any day. Bank profits mean that your deposits are safe & allows the bank to continue lending.

Stop being fooled by all this 'record profit' nonsense. Look at how fast the money supply is increasing. If you're not growing in nominal terms you are going backwards


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## chops_a_must (28 September 2008)

BradK said:


> Inflation and low interest rates make REAL debt more servicable... while inflatoin wipes out your savings ... ********.
> 
> Brad




Yep. That's why you wont be able to get bonds pegged to the inflation rate.


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## BradK (28 September 2008)

chops_a_must said:


> What? That we should do exactly what you say?
> 
> That businesses shouldn't take steps to stop themselves and shareholders losing everything?




Dont care if its a bank  Really dont. If the shoe was on the other foot....


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## chops_a_must (28 September 2008)

BradK said:


> Dont care if its a bank  Really dont. If the shoe was on the other foot....




Yeah, you shouldn't care hey.

It's not like if your bank goes bust or anything, that they'll take over your house.


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## BradK (28 September 2008)

Mortgage is SO LOW I could access funds from an investment to pay it off. 

Again, this is not a personal gripe because interest rates hurt me. Just the principle of the thing. Just making the point that I liked this $4 billion injection into non-banks because banks have spent the whole year trying to squeeze out non-bank lenders. Yes yes yes, I understand the mechanics of the crunch... but that was not ALL it was. Banks saw an opportunity - and I simply wrote to them and told them that I was going to cancel my credit card, insurance, trading account, mortgage and savings account. 

Banks dont like me anyway! - I have never paid a cent in interest on a credit card, and my mortgage was paid down quickly to a space that I no longer feel the need to rush. 

Im going out in solidarity with my fellow Aussies who were suckered into huge debt because they thought they would never get on the property ladder. Better with the underdog than the big man.


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## Glen48 (28 September 2008)

.25 % works out to 68 Cents per day per 100 K mortgage the Agents tell me inquires are picking up. 
From what I can work out if USSA is in so much debt they will have to put up rates to attract money and suck it in from other countries.
What we need to look at is Global warming and if it had an effect on Home buyers unless some one can tell me why every one else in the World thought House prices would keep rising and never come down even if nothing else has done the same in the history of the World.


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## 2BAD4U (28 September 2008)

BradK said:


> ...I simply wrote to them and told them that I was going to cancel my credit card, insurance, trading account, mortgage and savings account.



There is another option, buy shares in the bank and get some of your interest back in the form of dividends.
Although, this would create the problem of do you rejoice in high profits and divends or give them up for lower interest rates


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## Nyden (28 September 2008)

Wow, I never resorted into any sort of personal attack on you - let alone name calling? You've called me ********, redneck - and probably a couple of other things!

I did of course mean that hopefully rates will rise; not that people will hopefully feel pain!

What are you talking about with regards to inflation?  I never stated that I said I hoped for inflation, I implied that we *have* inflation; and that rates should remain high because of this. To slow things down, and to allow for savings to *not* be eaten away.

Why do you seem to be angry towards those that save? What the heck is with attitudes these days? Saving, and being responsible is wrong?


Yes, I'm the redneck ******** because I wasn't suckered into huge amounts of debt ... won't even really respond to that  You seem to be portraying yourself as quite the redneck though, pal.


Lastly; I have *zero* issue with folks if they want loads of debt - I don't even have issues with those foolish enough to take on more than they can afford. However - these people have zero right to complain when things turn sour. That's all I ever see lately though - people complaining about high rates; and they honestly have no right.


... I'm just having trouble grasping this whole thing Brad; you're cancelling savings accounts (what's the point in that? You just lose interest), sending off angry letters? Surely you could devote your energy to something more constructive; as it certainly comes off as if you are someone hurting from this.


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## BradK (28 September 2008)

Nyden said:


> Wow, I never resorted into any sort of personal attack on you - let alone name calling? You've called me ********, redneck - and probably a couple of other things!
> 
> I did of course mean that hopefully rates will rise; not that people will hopefully feel pain!
> 
> ...




Many apologies... I read your sentence wrongly and went mental. 

I thought you meant that you hope that people will feel the pain of an interest rate rise. You meant, on rereading it, that you hoped interest rates rise. 

GOOD. No problem with that at all. Some want them down - others want them up. My point is NOT WITH INTEREST RATE DIRECTIONS. But with banks not following the RBA and squeezing non-banks. 

My sincerest apologies.


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## Nyden (28 September 2008)

BradK said:


> Many apologies... I read your sentence wrongly and went mental.
> 
> I thought you meant that you hope that people will feel the pain of an interest rate rise. You meant, on rereading it, that you hoped interest rates rise.
> 
> ...




I do of course accept your apologies, and I too apologize if there was any confusion as to what my comments referred.

I am a harsh man, but I am not so harsh that I would wish pain on others! Haven't quite become that bitter yet :


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## jet328 (28 September 2008)

BradK said:


> Just the principle of the thing. Just making the point that I liked this $4 billion injection into non-banks because banks have spent the whole year trying to squeeze out non-bank lenders.



I sure hope you're not a business teacher 

Business 101- if you want to 'squeeze' someone out, you use your competitive advantage eg. lower cost base to drive prices to a level where the competition cannot sustain its business model

If the banks wanted to squeeze out the non-bank lenders they WOULDN'T have moved independently of the RBA. This would have put much greater pressure on the non-banks as their cost of funds is much higher.  

On the one hand you're complaining that banks have their rates too low so that the non-banks can't compete and on the other hand you're writing letters demanding the pass on any RBA changes(which actually does squeeze the non-banks)
Which way is it? or are you just a serial complainer




BradK said:


> Yes yes yes, I understand the mechanics of the crunch...



I seriously doubt this


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## Julia (28 September 2008)

jet328 said:


> I sure hope you're not a business teacher
> 
> Business 101- if you want to 'squeeze' someone out, you use your competitive advantage eg. lower cost base to drive prices to a level where the competition cannot sustain its business model
> 
> ...



Good post. Says it all really.

Brad, maybe time for a bit of a rethink on attitude?
You're not usually unreasonable.


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## Smurf1976 (28 September 2008)

nunthewiser said:


> PS........ as far as the borrowings are concerned , i am currently fortunate to have cash more than easy enuff to cover said development but still i borrowed , am i being irresponsible ? have i causedd the credit meltdown? will i go to hell because i use my funds as i see fit ?



No, you won't go to hell. It's your money and your right to do with it as you wish. It's none of my business what you do.

Just as it's the bank's right to do as they wish. If they want to charge 8%, 10% or even 100% then it's their right to do so. It's none of your, or my, business what they do. 

Of course, if you think something needs to be done about banks and interest rates then it follows that you're happy for something to be done about the reckless spending of many consumers. Can't have it both ways...


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## nunthewiser (28 September 2008)

Smurf1976 said:


> No, you won't go to hell. It's your money and your right to do with it as you wish. It's none of my business what you do.
> 
> Just as it's the bank's right to do as they wish. If they want to charge 8%, 10% or even 100% then it's their right to do so. It's none of your, or my, business what they do.
> 
> Of course, if you think something needs to be done about banks and interest rates then it follows that you're happy for something to be done about the reckless spending of many consumers. Can't have it both ways...




um i think your quoting the wrong fella mr smurf , scroll back , im happy to pay my intrest payments no matter what they currently slugging me , havent complained anywhere , all part of doing business.


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## BradK (29 September 2008)

Errr... sorry for the brain explosion last night. Hopefully the mods will clean this thread up a bit. 

Julia, you will be glad to know that I have changed my attitude to this whole thing. I have decided to go book an appointment with the manager and remortgage WITH A BANK... so I can have that plasma tv instead of spending too much time posting here... and I think I will take another European vacation... after all, I think we are in for another 10% rise on the house this year, so... it practically pays for itself, doesn't it? 



Brad


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## Julia (29 September 2008)

BradK said:


> E
> Julia, you will be glad to know that I have changed my attitude to this whole thing. I have decided to go book an appointment with the manager and remortgage WITH A BANK... so I can have that plasma tv instead of spending too much time posting here...



Hey Brad, forget the plasma TV.   I'm sure we can offer you much superior entertainment on ASF!


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## BradK (29 September 2008)

Julia said:


> Hey Brad, forget the plasma TV.   I'm sure we can offer you much superior entertainment on ASF!




Yes, but I AM the entertainment! That's no fun! 

Brad :


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