How does the credit crunch affects the average person?

Ames

They're not really separate though. As Rayday says, it means consumers have less money for debt repayment. Rising petrol costs also add to the cost of most other goods as companies have to pay transport costs. This also means that the businessess can't repay debts, so in both the consumer and business sides prices are rising, debt's increasing and there's less ability to pay. Which means the cost of credit also rises.

SarahNeedle1872

The credit crunch is affecting us, as a middle income family, in a number of ways....

*The increasing cost of fuel means it costs me nearly £60 to fill the car, and I cannot afford to buy a new, more fuel efficient one.
*Our rent has increased by £125 in the last two years, because of the increasing cost of our landlord's BTL mortgage.
*The cost of food has increased massively..... even a lot of the 'basics' stuff that we buy (don't tell OH tho!) has incresed by 25%+
*Energy prices - !!!!!! is that all about!?! Thankfully we are now capped until Aug 09, but goodness only knows what the cost will be then!

Inflation is 'apparently' 3%..... but in reality, for many many people, it is way way more!

mountainofdebt

that although comparisions are being made with the 1970s no-one has yet realised that North Sea Oil helped bail us out.

The UK for far too long has been built up on service industries, and the manufacturing side of things have been allowed to decline, and it is these industries which are going to suffer in the present climate.

Personally I dont' think the media has overplayed the situation - it seems like the government are paralysed as they simply don't know what to do to at least halt the rot.

LoulaBelle

Xxxxxxxxxx

firepoppy

Personally, it is my opinion that anyone who think Siross is too young or too priviledged to be alloed his say (in his own thread, may I add) is simply jealous. I admit I am a little jealous too but I'm not going to allow myself to become bitter and resentful.

Siross, I agree with you that the media probably is over emphasising this issue. In general, the media like to portray issues as being much worse than they really are as scare stories sell more papers.

I work in a charity shop and som eone said a recession would be good for business as more people will want to buy things second hand rather than pay for things new. Somneone else replied that people will donate less good items as they will hold on to what they have and not buy new clothes as often, etc.

I think it's just being optimistic or pessimistic and personally I prefer to be optimistic. I know I'm doing what I can to pay off my current debts. I'm starting a second job tomorrow and I'm lucky as my parents help out with the bills. My partner is trying to claim income support and housing benefit and has been for the past 10 weeks and we are doing everything we can to get this claim through but it will be sorted soon.

I'm doing my best so overall I'm pleased with my life and my situation. I won't let these scare stories bother me. If they don't come true then I've upset myself for nothing. If they do come true then we'll manage; we'll have to.

I hope I don't sound patronising but overcoming severe clinical depression has left me a much stronger person than I used to be and I know it's no good to anyone to dwell on bad things that might happen.

debtweary

Hi All,

Siross is not 'rubbing peoples noses in it'- he is merely stating things as he sees it. This form is designed for this. As far as I can tell he is a debt wannabee but may be not to the same degree as the rest of us. He certainly is the product of debt free wannabees with his parents experiences.

Your view, Siross, of the cyclical nature of recession is accurate and you should not be condemned for stating things as you see it.

Good luck with reducing your debt and do not get sucked into more debt like me.

DW x

moanymoany

siross2203 wrote: »

i think one of the largest problems is the media, there is an incredible amount of scare-mongering going on. this is being compared to the late 20's early 30's great depression, there is talk of a european recession coming.

this is simply not true, the main focuses with todays job losses in housebuilding (not all of construction) is cyclical. it will happen and then in time, it will be the boom sector to be in.

I work in construction recruitment at senior level and the rest of the market sectors are not suffering as badly as housebuilding. Retails sales for May across the uk were up 3% on the month before showing that people arent scared of what is happening.

what you will find is that things are blown way out of proportion and really, things arent as bad as originally or currently thought.

I am 20, i live with my gf who is 21, between us we earn 43k a year gross. we have a beautiful appartment that we rent because we are holding out to buy, and dont have a great amount of money left over due to paying off debt, however by simply being a little more careful we avoid any spiralling costs. our food shopping is literally no different to 6 months ago, yes my car costs me more but i am lucky enough to walk to work as does my gf.

I think people need to stop worrying, stop looking at 1100 jobs gone in housebuilding and thinking we are all going to keel over and die. put it this way:

housebuilders are struggling for cash and cant sell homes, so lay off lots of people...

homes stop getting built apart from social housing quotas which are paid for by the government and have no risk attached...

people still want to buy new homes but will struggle as they arent being built...

in 6 months time, i will want to buy a home but if none are being built then supply is not meeting my demand (along with millions of others)...

we all know what this means, you homeowners who have had about 9 months of higher mortgages or tighter fuel bills and maybe even negative equity will now be sitting on an asset that will meet the value of last year.

this will be sustained by the fact it takes so long to build to meet those demands, so house prices will go back up to where they were, then give it a while and it will all happen again.


I know this is one guys opinion but I think the media have a duty of care not to just present doom and gloom to the nation, granted its not a great situation but it is not as bad as it is made out to be.

hope somebody agrees with me!

I am very sorry to say that I do not agree with you. The problems are world wide. What about all the inner city flats that are going for 60% of the price they went onto the market for. I think you have your head in the sand.

It would not take long for you to look at other parts of the forums - House Prices is one. This will give you more of an insight.

http://forums.moneysavingexpert.com/forumdisplay.html?f=149

It is popular to say that the 'crash' is being talked into existence. However, fewer and fewer people believe this as reality strikes them. Have a listen to this - if you can cope with the grim reality of what is happening.

http://commoditywatch.podbean.com/20...ow-will-it-go/

kizzykizzywizzy

LoulaBelle wrote: »

I would just like to know what Siross2203 is doing in this forum? its a debt free wanabee forum aimed at helping those in debt not rubbing peoples noses in it

On your way now .........

Bit harsh:o be nice:A

I do wonder where the demand for property is, perhaps i am being naive? & I'm 37 so you can't blame that on age:p
The government want to build all these - so called "affordable" houses, but no-one can get a mortgage.
Do you think we are going to have loads of empty new houses??
I have really noticed an increase in my food shopping, I hardly ever have meat these days & if i do I bulk it out with other cheaper things.
My petrol is ridiculous & I walk loads, rain doesn't help as have had to drive today!
Also my fixed rate ends 1st October & my mortgage will have gone up over £200 - fuel bills that I have managed to get down by being careful & luckily getting a grant a few years ago for cavity wall insulation & loft insulation have gone up too, so the credit crunch does affect me VERY MUCH.
I would be surprised if it doesn't affect you sirross, perhaps you haven't noticed it as much as people with mortgages / children & you earn a good wage:T you've got a nice Dad too, can I borrow him!

moanymoany

CHEAP_AS_CHIPS wrote: »

I think that everyone is affected in some way.

from my familys point of view, it has hit very hard

my hubby is a finacial advisor dealing with mortgages, and we know whats happened there

his wage is down approx £1,000 per month

and then as he drives to appontments his petrol has increased and he know spends £70 - £80.00 just on petrol

then there is the cost of food

our gas and electric went up by £40 a month

you will be very lucky if it dosn't affect you.

The partner of a colleague of dh also works in the mortgage industry. Normally she handles 150 mortgages a month, June she handled 4!

kizzykizzywizzy

My mortgage advisor friend of a friend is £17,000 down on last year - she's not exactly on the breadline though:p