Opinions in my house vary so much regarding the credit crunch....Its so confusing

JFC_2

My mum is full of doom and gloom, she is cutting back on everything, denying herself a daily paper, turning of her heating and instead going in her duvet to keep warm - she is 71 and has savings, which she was successfully living off the interest before. It wasnt so long ago she was trying to give money away to avoid inheritance penaltys....now she is worried for the opposite reason (I keep an eye on her though, we live in the same road and I make sure she is ok)

Then at work just now, a colleague of mine, said that all this talk of a recession is nonsense, she said, her boyfriend and father both in the building trade and still have loads of work. I mentioned my concerns about Vauxhall cars needing a bailout from the government (I am about to purchase a Vauxhall) and she said..."Thats rubbish, they are part of GM and will never go bust!" So she is either an incredibly postitive person or someone who has a head in the sand philosophy

In relation to our company SAYE scheme, I notice the option price offered to staff is now far worse than they are available to buy from the public, again this was rubbished by the above colleague, who claims that when the Scheme ends in 3-5 years this credit crunch will all be history and the shared risen again! I am not so sure...


It seems that some people are not affected in the least by the changes to our economic climate, whilst others are really scared and worried.


My sister is trying to help me rearrange my pension as she said I should consider investing in different funds (Invesco I think she mentioned) and reduce my property investment (SIPP)

Anyway...I am surround with so many people with such strong opposing views. I find that I am very influenced by people who at the time put their point accross so well that I lean towards their camp. Then another completely opposite view point is given, equally as eloquently and I find myself switching back and forth with my own thoughts.

Do you have the same in your home and work place?

Penelope_Penguin

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silvercar

Do you have the same in your home and work place?

Yes. OH reckons there is no point reducing the mortgage as the interest rate is so low (1.25% now) that we don't see the benefit of a reduced balance.

I want to use the low interest rates as an opportunity to reduce the balance.

So he bought a 50" plasma something, then smoothes the waves by suggesting it is my turn to have a new car. :think:

StevieJ

Like other areas in life the reality is likely to lie somewhere down the middle
BTW the Invesco Perpetual Income fund is very popular and performed creditably in the past (doesn't mean it will in the future though:D).

Max_Headroom_3

silvercar wrote: »

Yes. OH reckons there is no point reducing the mortgage as the interest rate is so low (1.25% now) that we don't see the benefit of a reduced balance.

I want to use the low interest rates as an opportunity to reduce the balance.

So he bought a 50" plasma something, then smoothes the waves by suggesting it is my turn to have a new car. :think:

It doesnt' matter what the interest rate is, it's always a good philosophy to owe less money, and low interest rates is a great opportunity to pay more off of the capital.

What your OH has done is simply come up with a good "excuse" to buy a FO big TV!

Lotus-eater

silvercar wrote: »

Yes. OH reckons there is no point reducing the mortgage as the interest rate is so low (1.25% now) that we don't see the benefit of a reduced balance.

I want to use the low interest rates as an opportunity to reduce the balance.

So he bought a 50" plasma something, then smoothes the waves by suggesting it is my turn to have a new car. :think:

And he is exactly the man that Mr Brown wants us all to be!

I'm more like you.