Are the papers exagerating?

gailey_2

Sometimes wonder why i bother buying as quite depressing.
Papers seem obsessed with credit crunch, housing market, inflation and cost of living indexe,s every day moaning about food, utility and petrol rises.

Must admit we are feeling pinch of rising costs however the express money page of timebomb of debt threatens millions does seem a bit dramatic!.

It say lots of people struggling to meet debt repayments, the cccs said it was calm before the storm that its not only people with fixed rate morgages coming to an end 1 in 7 now have large amounts on unsecured debt compared to 1 in 14 a year ago! repssesion up 48%in fisrt 6months of year, 15000 people declared bankrupt in england wales in first quarter and 10000 ivas.

Apparently the governements definition of indebted threshold is when more than a quarter of gross monthly income is spent on repayments for unsecured debt

So my question is are they being overdramatic.?
I think people spending patterns are chnaging and people tightening their belts.

Its just so many people on here manage to pay staggering amounts of debt off despite credit crunch!

with each rise i just look look to earn more or cutback but i guess maybe general non mse population not doing this.

We just hoping to ride the storm, keep paying off debts, try and save and maybe buy house one day.

rayday2

Well if the papers are exagerating then check out the Governor of the Bank of England he is now saying that Britain will be in recession next year.

You cannot really judge the fianance world via what you read on MSE becaue the whole point of MSE is to use credit to your advantage which is not what the credit industry is about. Friends I have in the real world are struggling are selling houses to down size, changing supermarkets, not going on holiday etc etc

gailey_2

Yes true we have freinds who are struggling, brought at wrong time and in negative equity.

But what stuck me on here is that people are manging to pay off debts, cope with rising living cost despite poor economy which is fantastic achievement.

I think we maybe heading for recession but mse does help with extra income ideas, challanges and moneysaving ideas.

NickWarren_2

Like it has been said most people (Non MSE's) moan that they are struggling to keep up the debt repayments, yet are still booking holidays etc and not spending wisely. Dont forget with the credit crunch we are only hearing about the bad things happening to people, not everyone is in the same situation, plus who really belives the papers anyway lol :P

SarahNeedle1872

NickWarren wrote: »

Like it has been said most people (Non MSE's) moan that they are struggling to keep up the debt repayments, yet are still booking holidays etc and not spending wisely. Dont forget with the credit crunch we are only hearing about the bad things happening to people, not everyone is in the same situation, plus who really belives the papers anyway lol :P

I completely agree...... the papers are exagerating slightly, as said above, you only hear about the bad stuff.... The trouble is that if they make it sound worse than it is, people think it really *is* that bad then start to take drastic action a la the run on NR when their troubles were announced.

Of course it doesn't help when numptys like our current chancellor make statements like 'well I might remove stamp duty for first time buyer, I might not' - way to go to cripple the already fragile housing market!

Listening to Merv this morning, things are gonna get worse before they get any better IMO. I feel sorry for people still trying to survive on credit/sell their house/live within a fixed income, and hope more of them find the help they might need.

Sarah x

NickWarren_2

The whole credit cycle always puzzles me. credit becomes easily available, people get further and further in debt with it being affordable and then a decade later the strain becomes to much and then snap in comes the crunch, you'd think it wouldnt still happen but i bet in 20 years it'll all follow the same pattern again. This country is a victim of its own monetary success and bringer of its own monetary demise!