If things get tougher?

mary43

I agree with you there Gigervamp - so many people have paid for stuff 'on card' as opposed to cash and I have to confess I've done so myself and also have bank overdraft, plus loan and mortgage. Not so long back we were comfortably off (we thought) but times change and I should have learned from many years ago but didn't.
The mortgage vanishes in October, loan the following March and the overdraft if starting to come down thank goodness now that OH has had a bit of part time work. Once he gets back to more full time basis then it won't be so much of a worry (we hope) and my insurance policy (sort of savings one) matures in October -with any luck I can clear some of the debts with that,
Originally I was hoping to be able to give some to my kids but I can't see that happening.........they know nothing about it anyway so its not as though they're expecting something and it won't happen.

But there's no sense in worrying about it all really, it doesn't solve the problem (though its easier said than done). Best thing to do is to be as mse as we can, cut back on the frivalous things that we once thought were 'must haves' and concentrate on what we really need to live on.
Long as everyone supports each other than we'll come out of this as maybe better people for having learned from it and who knows, community spirits might just spring up again:j

unixgirluk - thanks for saying a big 'thankyou' to mse members - fancy me forgetting to do that so big thankyou from me too:T

katieowl_2

moanymoany wrote: »

I think that over the next three years things will get much worse. I agree with Austin Allegro and I also think the media is playing down the severity of the situation. The Crosby report available on the Government website paints a very gloomy picture.

What happens in the USA will spin over to us and the rest of the world and what is happening there gets worse by the day. I subscribe to a savings/frugal site from the USA and each week the articles are more and more gloomy. There have been large rises in health care charges and insurance premiums, large rises in food prices and thousands of people are simply walking away from property they bought with 100% mortgages as they are now worth 30% of what they paid and interests rates have risen. In the USA any shortfall between the value of the house and the sale price is picked up by the bank. It doesn't take a genius to see the problems this will create for banks already under stress. Indymac wasn't even on the 'could be in trouble' list and look what happened there!

It is not only those who have got themselves in over their heads who will suffer, it will be a lot of people who now own 30 - 40% of the equity in their houses, that will probably be gone by 2010. Fuel prices are not going to go down in any way that is going to lessen the load. There are already famine and starvation in many parts of the world due to global food shortages and price rises. I've seen news including this information on French TV - none here.

There you go, gloom unlimited!

Yeah I'm afraid I agree with you! The thing that I haven't really seen reflected in the news is the lack of work that is out there??? This is the THIRD year running my kids have had REAL trouble finding summer work, the lady upstairs says her kids can't find anything either. Employers are tightening their belts like MAD IMHO. (I won't even go there on my DD finishing uni with a 2:1 and the only interview she's got was min. wage in pet shop) I live in SE London so hardly one would think work would be there?

Regards

Kate

moanymoany

Just heard on the news - the biggest single rise in fuel prices ever, 35% by British Gas.

Need anyone say more?

mardatha

I just got it today , havent had time to really get into it yet but I too wondered where they were now. Its similar to the one somebody else mentioned "a house on the shore" or similar, about a couple who bought a derelict house on Harris & turned it into a posh hotel. I just wonder where on earth they found men who can DO things. Mine can't !!

mardatha

Also, just reading back on this thread --the lessons we learn in life and remember longest, are the really hard and unfair ones. I'm taking this time as a lesson.
But I'm also using it as a personal crusade against politiicans --THEY WILL NOT GET ME DOWN! lolol!!

sb44

moanymoany wrote: »

Just heard on the news - the biggest single rise in fuel prices ever, 35% by British Gas.

Need anyone say more?

Well we took a 5 year price fix for dual fuel with BG in 2005 so we will have one hell of a shock in 2010 when the price shoots back up to normal.

moanymoany

sb44 wrote: »

Well we took a 5 year price fix for dual fuel with BG in 2005 so we will have one hell of a shock in 2010 when the price shoots back up to normal.

Congratulations for being so far sighted - I bet there are a lot of people wish they had done the same. :T

BilberryCharlotte

mardatha wrote: »

what a shrewd, prudent, farsighted and generally all round clever cookie you are.
***********
LOL that did it! hysterical giggles ! thank you. I will copy and print this and stick it on the fridge for the OH !! lolol! THANKS LADIES XXX
--edited to add --the postie jsut brought my "Hovel in the Hills" book, between you and that, that's me happy

I am so pleased you are feeling happier again, but......you know I was only telling the truth!

Austin_Allegro

Merlot wrote: »

I take on board your opinion, do you really think that much of the economy will grind to a halt without cheap credit? Do you think that most people are in debt with the exception of the mortgage.

I'm not in debt and i have been OS for a couple of years and live very frugally and my friends aren't in debt either, so why would the economy grind to a halt without cheap credit? If one can't afford it, don't buy it, it won't generally change ones life for the better if one does buy it.

I am simply asking for your opinion, I am interested what others have to say on this matter.

Don't forget that no more cheap credit doesn't just mean that people have to save up for things instead of buying them straight away. It extends to every corner of the economy. If banks lend less money, businesses can't invest in new equipment etc in order to expand. Venture capitalists will be less likely to lend money to set up new businesses to replace those that shut down. Even public works are affected through things like PPI, because HMG can't borrow sufficient money.

Then there's housing - buying and selling houses has been pretty much the basis for the economy in the last few years, so if there's no more cheap credit, there's no more house price inflation, and therefore no money for estate agents, builders, DIY stores etc and no more mortgage equity withdrawal. That means less money for big things like cars and holidays - therefore, a downturn in those areas too.

It's only then that you get to the bottom of the chain - a squeeze on unsecured debt - meaning less money to borrow on credit cards, meaning less money spent in the shops, which means layoffs in retail, entertainment, holidays, etc etc.

So although most of us on MSE realise the importance of being out of debt, the credit crunch will take little notice of the likes of us. Add to that the rise in cost of commodities - fuel, food etc - and the picture is not rosey.

I would add though, that people shouldn't stop spending and become misers. That's not good for anyone either! For example, I went for a couple of pints at my local pub tonight, when I could have been sitting in my garden drinking homebrew instead. Doing my bit for industry!

sb44

moanymoany wrote: »

Congratulations for being so far sighted - I bet there are a lot of people wish they had done the same. :T

Well at the time BG were a bit more expensive than everyone else, but my husband liked the idea that we knew what our rate would be for the next 5 years.

We have only one wage as I am a full time mum, we have a below average income and obv child and working tax credits.

My husband has always been one for not turning the central heating off to save money. We had a coal fire and storage heaters in our last house so having gas central heating was a luxury that he had missed.

But......... I couldn't believe it today when he said in winter we will make sure we wear socks with slippers, put jumpers, cardis on and get the fleece throws out! He says we will have to have the central heating on if there will be a chance of a freeze but othewise he is going to bring the oil filled fin radiators out of the shed. We bought these to use in the old house as it was a pain having storage heaters on as you coulnd't turn them down on a warm day.

We found these heaters to be really economical to run as they give out masses of heat even on the lowest setting.