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[MSE Lawrence]

Poll between 26 Jan-3 Feb 2009:

How close to the brink are you?

Three months ago we first did this poll... then recession was on its way. Now it’s here. Have things changed?

On a scale of nought to nine, how near the financial edge are you?

Which of these is nearest your situation?

0 No problem. No matter what. - 6% (811 votes)
1 It’d need to be extreme before we felt it. - 12% (1719 votes)
2 Mostly fine, even through recession. - 20% (2909 votes)
3 A few minor tweaks should see us through. - 13% (1965 votes)
4 Will ride it out, if we tighten our belts. - 15% (2174 votes)
5 It’ll be tough, but we should survive. - 15% (2219 votes)
6 It’ll be a real struggle, even if we take all precautions. - 8% (1218 votes)
7 It’s fifty-fifty if we’ll make it. - 6% (815 votes)
8 It’s very likely we’ll go under. - 3% (440 votes)
9 My finances are irreparable (looking at repossession/bankruptcy). - 3% (416 votes)

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[sparrer]

A little unfair of me but to answer the question from my point of view I'm grateful for the first time ever that I'm now a senior citizen. I have a (hopefully) guaranteed pension and my home is secure. I've been through recessons wihout the advantage of MSE so I think/hope it will be just a little easier for todays working people if they follow the guidelines here. I'm not saying it will be easy because it won't but sites like MSE are a Godsend at the best of times, even more so now. it's an 'I can't, we can' situation.

My good wishes to everyone who is or will be suffering the effects of this time.

[spendingmad]

I would rate our situation as a 3

My DH works for the NHS and I am self employed but my wage is pretty secure too.

This is the first recession I have experience of and I am using it to tighten our belts. For me it is good motivation to reduce our outgoings and pay off this debt!

[MsQContrary]

I rated myself as a 1 on the grounds that things would have to be extreme for the government to take my research funding away after they've guaranteed it for three years. But then extreme things are happening, it's scary.

[Saucepot]

Still 0, No problem, no matter what

But I do get an occasional twang of upper class guilt whenever I crack open another bottle of cristal.

It quickly goes, though.

[teddyco]

In the United States, President Obama is proposing a multi-billion tax reduction package to kick start the economy.
Under this plan, each family will get a tax rebate in the post for $1000.00 and each individual taxpayer
will get $500.00.

President Bush did the same thing in 2001 after 9/11 and the economy took off!

IS GORDON BROWN LISTENING? If you want to jump-start the economy, give people back their taxes to spend
on food, savings, whatever!

[Gemmzie]

7 for us, one wage is secure but it's not enough to pay the mortgage, bills and eat. So we're dependant on self employment, however, we're secure for a few months so maybe I'm being pessimistic.

[oldagetraveller]

"0" for me, no problem whatsoever. No debts at all, no mortgage etc. Made more than adequate provision for the rainy days while the sun was shining.

[carolpinkdreamer]

6 possibly 7. I'm having sleepless nights already.

[fc123]

Last time I went for 5.

Today I have gone for 7.

We have run a fully liable business for 22 years.

We have personal guarantees on a 20 yr lease and have traded in that prtemises for nearly 11 years. It is a well known area and boutiques like ours got it back on it's feet after the 90's slowdown...then the Costa's and Starbucks arrived plus the chains.....and up went the rents.....and many interesting Indies left to be replaced with chains....which kept pushing up the rents......

Consequently, we are under rent review and our Big Glass Tower LL wants to increase our rent buy 40%......except, the past 14 months has seen our T/O drop by 40%. They don't care about the local area, they are just using us to push up the rents for my chain store neighbours.
We operate on far smaller margins than chains....so cannot pay as high overheads


Our shop now uses up 90 man hours per week (me and OH) and earns zero profit and zero salary for our labour and time. It's soul destroyong.
Worse, our regular customers (and visitors) love it...afterall, we still have 60% T/O coming in.....but the other 40% thats been crunched renders us unviable.

Last summer, we started supplying a big E-Tailer with my own label clothing (I drone on about it on Economics board)...sales are sky high....so we currently earn our living expenses from that....but it could go tomorrow; fashion is fickle.


I want to throw the shop keys in the sea and concentrate on developing the other venture (I have had to turn down 2 new really fab opps due to a lack of time...I can only do so much in 7 days) but, our LL would bankrupt us and we own a house.

Going bankrupt isn't in my Life Plan...esp as we don't have mountains of debts anymore

We are trying to re-assign the lease....supposedly in the St paved with Landlord gold....the St that is immune from the downturn according to their surveyor......so far? Zero interest.
Loads of other shops have just, this week, come onto the market too.

The last rent review was a nightmare and put us into debt...and we nearly paid it all off too over the past 3 years....what a shame, we could go down due to the greed of a fatcat , in denial property unit trust based in Mayfair, London who view us as insignificant, numbers on a chart

Rant Over.

[lucielou5]

We are about a 5.

Just started a DMP and are reclaiming charges and the like.

Only one wage at the moment but we have overhauled everything (utilities, housekeeping etc).

LO starting nursery p/t next week so the option to earn a little bit more could be there.

A lot luckier than some so we can't grumble.

[shaz_mum_of _2]

We are debt free other than a mortgage i am a student and hubby works in the NHS i have voted 3 but if redundancy reared its head i am not sure where we would be

Shaz

[Olliebeak]

My job is secure and I've been very careful during the last 12 months.

Last year's holiday was fully paid for before going (no loan for either holiday or spending money ). Same for Christmas - have come into a New Year debt-free for the first time in years.

Deposit has now been paid for this year's holiday and will be paid in full by March - spending money will be sorted in April/May.

With the help of the Old-Style Board, I've got shopping and cooking under control. Food spending is down and freezer stocks are up - well done old-stylers! I reckon we could go about two months with buying only fresh fruit, vegetables, bread, milk and cat food.

I capped gas/elec at a good time. Also changed to pre-payment for prescriptions - now £11.50 per calendar month instead of £23 every four weeks! Considering my options regarding tv/phone-line - object to paying for all those channels that we don't watch!

I rent my home (subsidised as I have to live where I work) - so no mortgage. Approx 5yrs minimum (7yrs maximum) to go before I retire.

Have to admit to feeling quite positive at the moment and grateful that I'm in a position to help my daughter and her young family when she needs it. She'd just had her hours cut from 16 to 4 per week following a take-over - so she told the new employer where to stick it!

[meester]

Originally Posted by Olliebeak

My job is secure and I've been very careful during the last 12 months.

Last year's holiday was fully paid for before going (no loan for either holiday or spending money ).

Is this really that unusual?

How many people go on holiday using money they don't have. Utterly bonkers.

[*Louise*]

2 - Mostly fine

We have a wedding to pay for in May, it's the only difference since that last poll.

[ceridwen]

Well -if I went down - then most of the population would have already done so. Even though I am low-paid (little more than NMW) - my mortgage is paid off and I'm basically clear of debt. Add to that - that I am very good with money. So - I reckon I will at least manage - because if someone like me couldnt - then most of Society would have already reached that point and there would be rioting on the streets - and I dont think the Government would want that somehow...

[jackieblack]

Originally Posted by meester

Is this really that unusual?

How many people go on holiday using money they don't have. Utterly bonkers.

I agree, I'm always amazed that some people are willing to get themselves into debt for non-essentials.
If we can't afford something, we don't have it.
If we really want something (like a holiday) we save up for as long as it takes until we have the money to pay for it.

[Decorian]

I'd say 1.
Just been accepted on to a PhD course (with funding).
Which is fairly secure.
My fiancee works for a small company who advertises PhDs, and university jobs.
A lot of their business comes from abroad, so they are doing quite well from the exchange rates.
Also universities should be ok, as education is one of Britain's biggest exports, foreign student's paying large fees.

[djlester]

1 It’d need to be extreme before we felt it.

My job seems pretty secure (though my Sister thught that too, and she's just been put on notice at a very large company, with 20 years service). OH is just finishing her teacher training this year (would probably have been at risk working in the oil industry otherwise). Only got a mortgage, and never overstretched that. Additionaly got some savings - on balance I really hope they don't drop the interest rate any further.

Only just survived the end of the dot-com bubble last time round (I work in IT) - much better off now - that was a bit of a wake up call!

[Dinah93]

I went for a 2. This is actually lower than last time this poll was run. Realising my fianances were spread too thin I moved out of my rented accomodation and back in with my parents, enabling me to pay off my debts quicker. I have now paid off over £11,000 since August. As much as I liked my independance I was in a risky position if I lost my job, or the rent or bills rose even a fairly small ammount.

My only concern is that I work for the council, and as a fairly recently qualified member of my team I would be one of the first to go if they had to cut back. However we were told this week my team is safe until at least December, only voluntary redundancy and early retirement will be discussed, and it will be middle management that is being pruned.