If things get tougher?

Chipps

Spendless wrote:

I know the original post was about energy rises which I think we (me personally) could manage but it would be a different story if DH was to lose his job, or if one of us became ill. Or even if the mortgage rate went sky high (as has happened in the past)

Oh, no! Don't even think about it! Recently I found the paperwork from our first mortgage (when we got married in 1981) The interest rate was over 15 per cent!!!!!!!!! Can you imagine what would happen if we went back to those rates now????

Spendless

Chipps wrote:

Oh, no! Don't even think about it! Recently I found the paperwork from our first mortgage (when we got married in 1981) The interest rate was over 15 per cent!!!!!!!!! Can you imagine what would happen if we went back to those rates now????

Mr Spendless had his 1st home re-possessed last time (late 80s/early 90s). A flat he had very intelligently bought with a stranger :rolleyes: who worked at same place as him cos they both got a transfer to another part of country and couldn't afford to buy on their own.This was when the prices were sky high too. Not long after this person did a moonlight flit and the flat ended up being re-possessed and sold during the time when the bottom had fallen out of the market. It took him many years to recover financially from this. Unfortunately this experience hasn't made him more cautious as he thinks along the lines of "he got over the worst that could happen" (financially speaking).

moggins

To be honest, I think this thread has been very good for me. I think I've got very complacent lately as we are doing reasonably well even though DH took a huge pay cut last year. We really splurged over christmas as for some reason I had a feeling it would be the last one we all spent together (I was right, DD1 moved out a week later) and we have got a little in debt again and have no savings now. This thread has really pulled me back every time I want to buy something. Yes I have still bought stuff but it has to be stuff that will pay me back in the end, such as my greenhouse and sewing machine. Every penny from now on will be carefully counted and used to clear the credit cards and then saved like a mad thing

Sarahsaver

Exactly.
I started a thread last year 'can I save any more money' and responses were either 'good on ya' or 'you are barmy'. Theres nothing wrong with saving now if it is either urgent or to provide a safety net if things do get horribly tight later on.
Well, from being £50 a week short due to failure of CSA I have set up as self employed and now have enough coming in to live on. This thread helps as a reminder to those of us who need to still be cautious to do so, and the others to not take everything for granted. I've seen both sides, been in a marriage where we each brought in over £20k to having to sit in the benefits office for so long my son fell asleep on my lap.
Deffo no new clothes or shoes this month, and also using things up from the cupboard which is both sensible and fun - time I had a clearout too! just made another £50 on ebay today so thats great cos im not working this week due to half term.
We have a great treat on Friday - shopping ! The kids have got my saving habits and still have some xmas money left over

katieowl_2

Well it IS depressing to think of things getting tougher, but a whole lot more depressing not to have thought it through in advance IMHO.

At least if you have given some time to thinking 'what could I live without?' you are prepared to make that switch, you might even decide to do without straight away and save some extra cash!

I know that there will be loads of people who are in a position where things are SO tight already there is nothing left to cut back on though. Just about every one I know is struggling in some way at present, but none of them are actually relying on benefits that are fixed, low and unlikely to improve at all!

Regards

Kate

Juni_3

Chipps wrote:

Oh, no! Don't even think about it! Recently I found the paperwork from our first mortgage (when we got married in 1981) The interest rate was over 15 per cent!!!!!!!!! Can you imagine what would happen if we went back to those rates now????

And I remember when I used to get 11% on my savings.

[Deleted User]

Juni those days were terrible!! What a struggle to keep our heads above water. Young family, mortgage etc BUT it was part of a learning curve ie if needs must then we COULD (and did) survive. The younger ones today, or those who didn`t have a mortgage, haven`t been through that mill but between us we can help each other to get through tough scenarios, when something untoward may rock the boat.

Chipps

With a 15 percent mortgage we couldn't afford savings!!!!! ;-)

[Deleted User]

I think reality is starting to hit a lot of people now that more gas companies are announcing rises. The outside temp is better today and so I am using minimal heating, for the minimal time. I have also been cycling for about a month now and think that my circulation is better so don`t feel the cold too much. I want to park my bike in the local shopping centre but there isn`t a bike rack and my bike is covetable, I heard a few youths say `that`s mine`, so I need to lock it up securely. I am going to write to the council and if we get one it just might get a few more folks moving. By the way I am nearly 60 and overweight so if I can cycle so can most people. It does seem to be saving a fair amount on petrol

Juni_3

Chipps wrote:

With a 15 percent mortgage we couldn't afford savings!!!!! ;-)

So how come we're still struggling like mad with the mortgage rate at a 1/3rd of that?

Could it be that the amount of money borrowed back then was a great deal smaller because the house prices weren't so ridiculously high?

Or is that the endless stealth taxes have taken the place of the high mortgage rates?