BBC Debt Diary by Sayara Beg

ericthekidstoner

Just thought I'd bring up this lady's story
Reader diary: Dealing with my debt

Her diary is a pretty good account of what's happening to her debt-wise.

However, after first reading and deeply sympathising with her plight, I've just seen a couple of articles written about her story by professional bodies.

BBC diary is 'fiction' for IT contractors
Debt diary highlights misconceptions about freelancing

I can't help but to think that as convincing as she sounds regarding most aspects of her story, she has not realised a (if not *the*) fundamental risk and issue of being a freelancer (losing her contracted position was the catalyst for her debt situation), which does kinda flaw the rest of her story... Surely someone as articulate and evidently able as her should have understood her position and rights as a "provider of service", as opposed to an employee.

Having said that, I still really hope her family still get through all of it!

Reckon guru Martin could help her?

Get_Real_2

Here's a take on it which is pretty much in line with my own reaction to reading Sayara Begs diary entries.

Her husband’s business was struggling, so they remortgaged their house and took out a personal loan. They also have two buy-to-let properties mortgaged up to the hilt, as well as credit card debts. Having decided that they were earning way too much money to service their meagre debts (which as a figure in the air guess, I would estimate are at least £500k) they decided to have a baby. Unfortunately shortly after she got pregnant, she was released from her job.



And guess what? One income, especially an uncertain one such as owning a restaurant, was not sufficient to service their mountain of debt. She is now using a news organization funded by you and I, to whinge and whine about how unfair it all is.


What galls me most about this woman isn’t the fact that she has taken a punt and that it has gone wrong. God knows any poker player/gambler could empathise with that. We have all punted a racing certainty and watched it get beat and many people, myself included, are nailed on to do it again (if Vorteeva runs at Tipperary on Thursday, my mortgage will be firmly on the line.) No, the real problem with this woman, and by extension with the British economy is that she refuses to take any responsibility for her situation. None of it is her fault; she feels she should take exactly 0% of the blame. So you have no guaranteed income in your family (he owns a restaurant, she is a freelancer) you rack up what must be a minimum of half a million pounds worth of debt, then you decide to have a baby. Yet when you can’t service your debt it isn’t your fault???

this was extracted from this blog which you may already have seen.

OK it's harsh of me to be unsympathetic, and perhaps out of place on this forum where the posting community is generally so supportive and helpful. It's true that the author Sayara Beg is brave in presenting her situation in this public way, and I don't want to post smug vitriolic and hostile comments like some that I've seen, from, for instance, contractors forums, hpc and the like. But come on. . . . . . there is no way that lenders can be held responsible for her situation, and nor can anyone be surprised that once the lender's defaulting process begins it is pretty automated and impersonal and allows little room for manouevre. The thing that I hope is highlighted and will be taken on by her readers is that borrowing to the extent that she and her partner did carries risk. Depending on who you are and how you sleep at night, the risk may be important to assess carefully before you implement your business/borrowing plans.

gr

margaretclare

I completely agree with the part of the analysis which you quote, that the basic problem is that it's everyone else's fault, that the woman being discussed feels she should take 0% of the blame.

I hear this kind of attitude expressed all around me, from people of every age-group. I particularly hear it from members of my own age-group - the wrinklies. They don't acknowledge the fact that they made wrong decisions in the past by not paying full NI contributions (women) or not buying a house when the prices were cheap (that would have been my late second father-in-law, who chose to rent a house 12 miles from central London and refused to buy it on the grounds that 'they weren't going to be there long enough' - only 22 years!!) They trot out the tired old sound-bite from way back 'cradle to grave', that was promised us, 'Maggie' upset it all, the present government, Robert Maxwell, you name it, they thrust the blame on someone else.

I learned at a very young age that, at the end of the day, whatever I made or didn't make of my life was down to me. I've been through the whole shebang of trying to borrow your way out of debt, even now I'm told that 'saving money is a waste of time, spend it while you can and then claim benefits'. People imagine that there is always this benefits safety-net and that it is a viable way of life if it all goes wrong.

Margaret

Pobby

Once again,wise words from Margaret.She knows I am one of her fans----lol!Sayara Begs demonstrates to me something that I have found hard to comprehend.It seems to me that a lot of people have developed a strange relationship with money.For example I`ve have heard things ``My Mum`s house is worth £300k and she only has a £150k mortgage.``ah but I might have a £300k interest only mortgage but my house is worth £380k.

So with this equity they then start using there houses like atm machines for holidays,cars whatever.In my case my house has hone up about 200% in the last few years.Do I fell richer,I don`t think so because if I moved pro rata I would have to fund a new property with the sale of my house which has also gone up.

As to buy-to-let,which to a large degree,has driven the housing market to the dizzy heights they are today,I cannot understand why people are still piling in with such low tields.In Sayaras case,mybe she was going for the long term,hoping that at some point the btls will go up in value but what a risk!

Yes,I am not happy with what my pension will produce,but to enter so late into btl is sheer madness.

Ok guys,shoot me down in flames,yes the lady didn`t do her sums,but surely if you were a proffesional lender,do you think it unreasonable that they should have been a little more wary about lending to her?

Emmzi

Well now.. we only have one version of what the lender might have been told. .a lot of it still goes on trust..

Pobby

Emmzi that is very true.There have been a number of threads on HPC on thia subject.Self certificated mortgages.I remember those before the last house price crash,people were lying regarding their circumstances.I think over the coming years this fraud will come to light.Also I wonder how many people have a satisfactory savings scheme to pay off the capital on interest only mortgages.

Pobby

Bumped it.Thought it an interesting topic.

ericthekidstoner

all true (some quite harsh) opinions imho

as flawed as her argument (and seemingly lack of preparedness to take responsibility) is, we are all experts in hindsight.

debt accruing past aside, her actions since being in financial trouble is admirable. I can imagine and sympathise with the lack of help she feels she is receiving.

whilst the parties mentioned aren't family planning experts (me included), the timing of her pregnancy isn't the best - surely finance is a big part of making that kinda decision (which seems to have been overlooked)

I'm most intrigued to see the outcome of her story.

mystic_trev

By advertising to the World what a stupid, demented and cluless !!!! !!!!!! she is, she's guaranteed never to be employed in the IT Industry again - she is now (in effect) a "marked" woman.

Sayara - Grow up, sell your BTL's pay off your debts and stop blaming other people for the mess YOU'VE got YOURSELF into.

End of rant!

ericthekidstoner

the final chapter
http://news.bbc.co.uk/1/hi/business/6047542.stm

moneysavinmonkey

http://news.bbc.co.uk/1/hi/business/6357331.stm