The Last 5 Major Uk Recessions

StevieJ

SingleSue wrote: »

Believe me it's not!

You do not want to be unemployed and at the mercy of the benefits system at any time but certainly not at times of recession when cost of items are increasing (despite what some are saying, food prices are still very high as are gas and electric) and you have no way of upping the income via overtime, extra shifts, christmas bonuses etc to cover it all.

The money coming in remains static for a year and then any increase is in line with OFFICIAL inflation, which as we all know, bears no relation to the real inflation figure.

In the last recession, due to high inflation, my salary was increasing (inflation plus extra) each year more than what my outgoings were..or so it seemed anyway and we were not feeling any pain whatsoever. It was even at the stage that we couldn't understand why some people were moaning about increases in food and fuel...to us, it barely touched our disposable income each month and in fact, we had more during the recession than before it! Oh what a joy it was to receive pay rises of £4k+ etc (sounds small now but relative to my salary it was around 17-26%, with 17% being the smallest payrise and 26% the highest) and one time I even managed to double my salary by moving job!

I am not saying we need high interest rates, far from it as I agree with both camps in this discussion. Lower interest rates are needed to help everyone with a mortgage but for those who do lose their jobs (and there will be an awful lot who already have or will be), it really doesn't make that much difference...their mortgage payment will be a lower amount each month but that lower amount will still be more than they can afford. For those with savings, it is also a bummer time, their savings are not growing at a particularly good rate, especially with the erosion of what their pounds can buy due to the hidden inflation (well hidden to the government anyway).

Not everyone has savings or an earnings protection policy, the money paid out by the welfare system IS only the interest part and 13 weeks is an awfully long time to be worrying about it...and of course there is also talk about interest only mortgages being discontinued, so where would that leave those unfortunate enough to be on down on their luck through a job loss and have taken a job...any job so they are earning.

I suppose you could say I am sitting on the fence between the two camps as I can see both sides to the arguement! :rotfl:

You obviously didn't read my post, the gist being that it was better to be on an interest only mortgage going into as recession, then your mortgage would be paid in full if you lost your job.

SingleSue

But only after 13 weeks of worry, which I did cover, I was also pointing out the bigger picture of being at the mercy of the welfare system.

The whole post was not directed just at you (I apologise, I should have made that clearer..it was only the first little bit saying about being at the mercy of the system), I then went on to address the other points in this thread.

And yes I did read the post and merely tried to point out that I wouldn't wish ( although I didn't make clear that despite maybe being in a better position by having an IO mortgage) the welfare system on my worst enemy. Delays, delays and even more delays whilst every part of your life and finances are looked into and then a pittance to survive on after it all.

StevieJ

SingleSue wrote: »

But only after 13 weeks of worry, which I did cover, I was also pointing out the bigger picture of being at the mercy of the welfare system.

The whole post was not directed just at you (I apologise, I should have made that clearer..it was only the first little bit saying about being at the mercy of the system), I then went on to address the other points in this thread.

And yes I did read the post and merely tried to point out that I wouldn't wish ( although I didn't make clear that despite maybe being in a better position by having an IO mortgage) the welfare system on my worst enemy. Delays, delays and even more delays whilst every part of your life and finances are looked into and then a pittance to survive on after it all.

Look I have loads of sympathy for your position, I know it can't be easy, the only point I and others were trying to make was that it was better for the poor souls who lose their job because of a recession to have low interest rates not high when entering a recession, whereas others said it didn't matter (or indeed better to have high rates), that is where the interest only mortgage raised its head.

SingleSue

Erm, I wasn't looking for sympathy only trying to show that although the state may pay an interest only part of a mortgage that it is not all beds of roses on benefits....my current situation was not mentioned at all (well apart from in my signature).

I may be on benefits and be a non home owner but that does not (or should not) stop me putting my views on this or any other thread.

By the way, I was partly agreeing with you regarding interest rates and said it would be good for everyone with mortgages but combined with that, that a lower amount will still not completely stave off repossesion or worry for those who have lost their jobs.

I also gave an example (ok this was my OLD situation) of what it was like for myself and husband in the last recession as someone had said about salary rises and I thought giving an example of what happened at that time with high inflation and interest rates would be handy to compare to now with middle range interest rates and an artificially low official inflation figure (whilst in real life, the inflation is a wee bit higher!).

StevieJ

SingleSue wrote: »

Erm, I wasn't looking for sympathy only trying to show that although the state may pay an interest only part of a mortgage that it is not all beds of roses on benefits....my current situation was not mentioned at all (well apart from in my signature).

I may be on benefits and be a non home owner but that does not (or should not) stop me putting my views on this or any other thread.

By the way, I was partly agreeing with you regarding interest rates and said it would be good for everyone with mortgages but combined with that, that a lower amount will still not completely stave off repossesion or worry for those who have lost their jobs.

I also gave an example (ok this was my OLD situation) of what it was like for myself and husband in the last recession as someone had said about salary rises and I thought giving an example of what happened at that time with high inflation and interest rates would be handy to compare to now with middle range interest rates and an artificially low official inflation figure (whilst in real life, the inflation is a wee bit higher!).

I think I am missing something here, I think we should call it a draw.

SingleSue

Good idea!

My brother always said " Never argue with a woman, they tie you up in knots either literally (nice) or figuratively (not so nice!)" :rotfl: