living beyond means/no sense of responsibility

spuds_2

I think the 90's saw a huge boom in credit, some of which was probably unecessary. Things went from one extreme to another. Many years ago they wouldn't take the woman's earnings into account for mortgages so many couples couldn't own their own house and I can remember when you could only get bank loans for cars or home improvements.

But then all of a sudden the banks were throwing loans and credit cards at anyone, people went crazy spending money that wasn't theirs, probably thinking that the increase in their house's value would get them out of debt.

I like to watch shows like Spendaholics and Bank of Mum and Dad, but most of the people on them shouldn't have been allowed anywhere near a credit card because they didn't have the income to pay off one, never mind the 4 or 5 they usually seem to have.

Some people just have the mentality that they don't have to repay loans, cc's etc. They go bankrupt and it is eventually written off. I know a couple of people on high income's who live to the max of their salary - they actually have very little to show for it. I prefer to live well within my means. I shop for bargains and if we can't afford it we save up. It's great that poor families can now get credit more easily, but it's a tough trap to get out of once your'e in.

I think getting in debt is more a young person's thing, though. Older people were not used to having credit so they are wary of it now, whereas we now live in a society which requires instant gratification and people don't want to wait.

It is irritating to see people flashing loads of money and not caring about debt, but it may be keeping them awake at night, causing stress in their relationships, and will catch up with them eventually. I am never jealous of people with flash cars and clothes because comparing yourself to others is the route to unhappiness. I know that we are very happy with what we've got - we are blessed with our children and good health, everything else is a bonus.

The things that are really worth having can't be bought, and though I love this site, sometimes I think it makes me buy loads of crap that I don't need. Oh dear, this thread is making me come ove all anti-consumerist.

I think after Christmas I will see how little I can live on.


edit: Old New, that is a massive achievement to repay that amount of debt, £25k. Well done for taking responsibility.

mrsmortenharket

I used to work for a bank in collections.
Many people were of the mentality that the credit card/OD limit they were allowed was their money.
The banks are at fault though for the way they lent to anybody & everybody My mother is hideous with money. She opened an account with the bank with a horse & they gave her a credit card. She didn't even attempt to pay it back. My mother struggles with reading & writing as well so I also thought it was poor of them to give it to her cos she doesn have a slight lack of understanding in the 1st place which would have been obvious when she was opening the account.
But the people I dealt with. Many were in genuine debt & wanted to pay back their debt. When I could I directed people here. Till every phone call was monitored.
But the amount of people that I couldn't get through to, that it was the banks money & not theirs.
I think there should be an IQ test when people want to borrow money

Lisa

olias

Although I do think the responsibility lies with the individual (leaving aside cases where that individual may have learning difficulties or similar), I do agree re the banks. Myself and my wife are currently on benefits due to my wifes disability and my having to care for her yet I have £15000 available on credit cards and a £5000 overdraft facility! Not that I use them. If I am ever any more than £100-£200 overdrawn, I would rather eat beans on toast for a month to clear it than have it hanging over my head.

Olias

Tiglet

mrsmortenharket wrote: »

I used to work for a bank in collections.
Many people were of the mentality that the credit card/OD limit they were allowed was their money.
<snip>
I think there should be an IQ test when people want to borrow money

Lisa

A few years ago, some friends of mine were always in debt because of bank charges. Every time their benefit was paid into their account, it was swallowed up paying the previous month's bank charges, so they never had any money.

I worked out that all they needed was a £100 overdraft limit, and the problem would no longer keep happening. So they got the overdraft, and immediately spent it all. They simply couldn't understand why they were then in an even worse mess. I gave up.

WolfSong2000

The bank that mrsmorkenharket mentions is terrible...when I was 18, I went to open a bank ccount with them...they asked me if I wanted a credit card - I said no. They asked again, I said no again and gave reasons for my decision. Half way through the sit down application process I noticed the guy I was dealing with was inputting some stuff into the computer. I asked him what he was doing and he told me he was putting down my details for a credit card. I hit the roof and demanded then and there that he stop...should have walked out and got an account somewhere else, and to this day don't know why I didn't...had nothing but issues with that bank when I dealt with them.

kr15snw

Trust me its not an age thing. Im 22 and stick to a budget. O.k I have a bit on credit cards but thats mainly due to my old job mucking up my wages repeatedly and running out of money.

I wouldnt dream of treating myself if I couldnt afford it, or hadnt saved for it!

ses6jwg

http://www.youtube.com/watch?v=SgUYUOGvVZM

mrsmortenharket

when I opened my account with the bank with a horse, they sent me a CC with a £750 limit. I was just back from abroad & had no job!

Lisa

mumOf2wonderfulkids

would just like to chirp in,

i agree with the other posters who said it's not an age thing, i am only 26 (hubby 29) have owned a house since the age of 20 and married since 21, we have always paid our mortgage/rent well up until feb this year when hubby was made redundant so we got a 12 month mortgage holiday, hubby went self employed and got a new permanent job since august, so we are now working on overpaying to cover the few months missed. we very rarely get anything on credit,

now my sister, who is only a year and a half younger, has never worked in her life always living off benefits, has 2 boys, she is now expecting her third child. the reason she wanted another child? because she wanted to get more money off the social :mad::eek::mad:

both had the same upbringing but completely views on life, and like i said, she's not that much younger than me.

don't get me wrong, i understand that due to unforseen circumstances people find themselves in a situation where they have no other choice than to claim benefits, but it's when people who have never worked a day in their life and have no intention too have more children just to get more money.....

get a DAMN JOB!!!


phew sorry, rant over:o

biscit

catieeb06 wrote: »

I wish to interject.

I'm only 21 and every month when I get paid I plan my budget. I budget for food, for rent, for my mobile etcetc. I even budget for my driving lessons.

Anything left I have fun with. Which may involve a takeaway or two per month. Or a DVD etc but that's it.

I take care not to rack up any debt that cannot be paid off at the end of the month.

I don't think there was any suggestion that all of your generation are like this.