How does the credit crunch affects the average person?

LilacPixie

hehe showing my age but when i passed my test £20 filled my escort and uunleaded was 65.9p a litre, think its 115.9p in my local morrisons now (cheapest) and with a 70 litre tank £20 won't even quater fill my french filly.

Indout96

I am 20, i live with my gf who is 21

To be honest that is probably the reason why you dont see what is coming :rolleyes: (other opinions are available)
The last Labour govt in the 70's did exactly the same as New Labour and when times became harder as they are doing now there was nothing in the pot. Morgage rates hit 15% half the country was out on strike for more money as inflation ran rampant and we had over 3 million unemployed.
We have a fixed rate mortgage until it expires, no depts & no credit card dept but our food bill has risen £20 a week and petrol is up 18% and rising 1% a week. My rise this year was £9 a week after tax.
I work in the chemical industry where redundancies are coming thick & fast, my company is making 1500 redundant this year worldwide, no idea how many in the UK yet it has not been anounced
You may be able to walk to work but your food will not walk to the shop. Our local Italian restaurant car park was half empty last night on Saturday when it is usually full.
I hope I am wrong but we are now well into our second 1/4 of decline at the end of which we are officially in recession.

sam89

--Consumerism --
people buying things they dont need
with money they dont have
to impress people they dont know :rolleyes:

Love your signature indout,

Sam,
x

rayday2

Sarah - I really feel for you.

We are probably complete opposite ends of your situation £20k combine earnings, mortgage of £72k and 3 children but are on a DMP due to our fianance problems.

We had booked one of those Sun £9.50 holidays at Pontins which we are now having to consider not going on, the cost of fuel despite the fact I have saved quite a bit just does not make it worthwhile going.

I haven't visited family and friends since Christmas really because the cost of petrol is so much.

These really are hard times I can't think of any winners my best friends who used to put £300 a month away into savings are now having to sell there home to downsize so who are the winners in this financial climet?

lizzylou

hi my hubbyworks for himself in construction ,this has hit us very hard as we supply and fix all materials used. these products have gone up at least 10% in the last year! and with petrol as well its difficult to manage. we can't put prices up as there is always someone who will under cut you and therefor will leave us with no work.
Some building companys have sent us letters telling us that they are deducting 5% of our costs because houses are not selling.
Is there anyone else who works in the building trade finding it difficult to manage? x

ali82

sarahc44 wrote: »

Thought I'd add our situation to this

We are a family of four - 2 small children in nursey, have a mortgage 125,000 and a three bed house a car, no debt whatsoever and earn @38K a year.

So because of my commute to work - 70 miles round trip, a company takeover and that company basically screwing us and blaming cut backs and the loss of £2000 a year off the top of my basic salary on the cost of fuel, I work in aviation. if I sign their contract (if I don't life is very hard and chance of compulsive redundancy as my job no longer exists - but I can accept theres) I am almost (because no one is holding a gun to my head) being forced to take voluntary redundancy, but luckily with a good pay out. I have signed to go because the loss of earnings, cost of my fuel, rising cost in nursery fees, food general living expenses all add up and it means that the job I dreamed of for so long as a child and have done succesfully for 8 years will no longer be mine.

I am going back into health care where there is always the need for people.

So in answer to the question yes it affects me - it's raining outside I have been sat in all day with my children because I am watching the petrol as I have work again at weekend and need what's in the tank. We have had some fun and done bits but I can't afford to take them out, my shopping bill is more, utility bills more I could go on.

It has affected me deeply, in my career and in my children. I am lucky to have no debt and am pleased that I took my Grandparents nearly new settee and didn't finance one, or took fancy hols but went to Pontins and can pay my mortgage, but I still need to consider every penny I earn - not nice.

Love Sarah x x x

Sorry to hear this Sarah, hope thiungs turn around for you

Indout96

LilacPixie wrote: »

hehe showing my age but when i passed my test £20 filled my escort and uunleaded was 65.9p a litre, think its 115.9p in my local morrisons now (cheapest) and with a 70 litre tank £20 won't even quater fill my french filly.

:rotfl: :rotfl:
I'm only 46 but I remember when in the budget petrol hit £1.00 a gallon, (1980 ??)

kel123_2

Siross post 14#

At 21 I could fight the world, bike uphill in 18th gear and still have enough energy for an orgy. Well I thought I could!

I was in my mid teens in the 70's and can remember nights without electricity because it was our time to be cut off. What is happening now has the same feeling as what happened then - the winter of discontent, well it lasted for about 2 years with 2 year slopes iether side. People wanted rises above inflation in order to maintain their standard of living. When I took out my first mortgage it was at 13% but we managed.
I know age and experience count for nothing these days (I think my dad said that when I was 21) I didn't listen back then and you probably will not listen now (i'm my dad).
As for inflation you cannot compare yesterday (70's) with today because they are worked out differently, I can not but I bet there is some one who can to get a direct comparason?

The retail sector went in decline 3 years ago so it is has already hit near bottom so a 3% swing means absalutly zilch, it must be taken over a period.

Contruction is up and down dependant upon grants etc, but if the enhancements arnt there then it's a down spiral

lending establishments will protect them selves just like they have done in the past. tighter lending and higher interestrates, usually due to a need to attract investers/savers they will increase the saving interest rate (8% ring a bell) and borrowing interest rates will have to rise to pay for it.

Now on to food - this will rise due to the three above - so you iether cut back or you ask for more money

Companies will add to the slump in manufacturing by lowering their minimum, stock levels, to try and avoid paying too much interest. This in turn will effect the supplier who will iether stop overtime, cut jobs or go on short time working

Jobs in the debt collection industry will be stable as work increases

Sorry to be so negative but I think the media are 'as directed' being very kind to this government

Kel

mirry

my husband works as a hgv driver for a buildings material company,

when he has delivered to building sites the past few weeks they have turned him away , saying they dont need the materials because they cant sell the new houses so are closing up !

So this credit crunch is very real - and will get worse like it did in 1991 .

ghandi

LilacPixie wrote: »

Lucy, OH thinks maybe £120 each :eek: Apparently they are 17 inch low profile tyres and that means pricy. :rolleyes:

Have you tried www.blackcircles.com, they can supply or get a 'fairly' local garage to supply and fit.

I am not associated with them in any way, just used them.