personal debt, & ongoing risks...

StevieJ

Bullfighter wrote: »

deleted message

Why don't you delete it then

Harry_Powell

lemonjelly wrote: »

I have posted before about this, & I remain concerned that the personal debt in the UK is yet to fully play out its impact on the UK, & potentially the global economy.

Do you really concern yourself over other people's debts? If so, then you really shouldn't go over to the DFW boards, you'll keel over from a heart attack! :eek:

I don't know about anyone else, bit I've enough of my own stuff to concern me without worrying about other people's debts!

iB1

lemonjelly wrote: »

This is mainly because it is a set of circumstances which evolved over a period of 10-15 years and developed into a mindset for many in society.

Plus, I can't help but wonder how long it will take us, as a society, to get away from the consumerist mindset of spending & borrowing that we've stumbled into.

Thoughts?

My thoughts are that it will take a long, long time for any mindset to change. The main problem now is that people my age (early thirties) and younger have grown up with debt being the norm, and that won't change IMHO.

By the age of 18, I had a store card, a credit card and a student loan. I managed them all just fine, but it shows how saddled with debt you can become.

Nowadays, teenagers will have the above, plus the possibility of a mobile phone contract and even a car loan.

The biggest problem is that we are now a nation of spenders rather than savers. All you need to do is to scan the "Mortgage & Endowments" or the "House Buying and Selling" boards to see how many young people are pretty much saying...

I want a house now, don't want to save a deposit so I'm going to go for this new build shared ownership thingy, without really thinking about the debt implications that arise from this approach.

Credit cards and loans will continue to become more expensive I feel, but you only need to look at the sharp rise in pay-day loan companies charging astronomical APRs to see that we're still well and truly addicted to debt.

lemonjelly

Harry_Powell wrote: »

Do you really concern yourself over other people's debts? If so, then you really shouldn't go over to the DFW boards, you'll keel over from a heart attack! :eek:

I don't know about anyone else, bit I've enough of my own stuff to concern me without worrying about other people's debts!

Erm.....

I work in the advice field. Which includes advising people on debt management and the like.

In the 13+ years I've been doing this, the volumes in which people I have observed borrowing has, imo been unsustainable. Peoples expectations of credit & materialistic goods has also been a philosophical worry. In conversations I have had with others in the advice sector, the so called credit crunch isn't much of a suprise. Consumer borrowing has been unsustainable. However, it went on for so long, that credit is now seen as a right or entitlement. I am wondering how people will adjust to restricted credit. Taken 1 step further, we were supposed to spend our way out of the slump & have a consumer lead recovery. Given disposable incomes are being stretched, how is this consumer lead recovery going to happen?

Which could lead to additional difficulties for businesses, the taxman, the economy as a whole.

& if it isn't an issue of concern/interest/relevance to you, then why post on a thread about it?

mbga9pgf

Really2 wrote: »

But you have more in the bank than most family's PN so credit would be an extra cost to you.

I would say a fair proportion of cars of under 7 years old are purchased on credit, unless people have the cash, but then if that is the case it sort of goes against the thread.

I have got in the habit with cars of arranging finance with the dealer, as some of their profits these days come for arranging finance.

What they dont expect to happen is me make the initial payment then pay the rest off the month later. :rotfl::rotfl::rotfl:

You can (I have) haggle extra discount by buying a car "on finance".

Really2

mbga9pgf wrote: »

I have got in the habit with cars of arranging finance with the dealer, as some of their profits these days come for arranging finance.

What they dont expect to happen is me make the initial payment then pay the rest off the month later. :rotfl::rotfl::rotfl:

You can (I have) haggle extra discount by buying a car "on finance".

Indeed, some finance will add to deal margin, stuff at going rates (similar to loan rates) wont 0%, costs them money.

I did what you did but with northern rock loans twice pre bust, but just haggled as a cash buyer instead.
Put it on a 10 year loan, held the loan for 1 or 2 months then pay it off, No cost other than a few £'s interest.

But like you point out you can even get discount on finance, all ads to what I was saying. Prices seem the same no matter the payment method you use.

nearlynew

mbga9pgf wrote: »

I have got in the habit with cars of arranging finance with the dealer, as some of their profits these days come for arranging finance.

What they dont expect to happen is me make the initial payment then pay the rest off the month later. :rotfl::rotfl::rotfl:

You can (I have) haggle extra discount by buying a car "on finance".

........ Great stuff.

iB1

mbga9pgf wrote: »

I have got in the habit with cars of arranging finance with the dealer, as some of their profits these days come for arranging finance.

What they dont expect to happen is me make the initial payment then pay the rest off the month later. :rotfl::rotfl::rotfl:

You can (I have) haggle extra discount by buying a car "on finance".

I've never done it, but what some people have done is to haggle a good deal by pretending to go for the car dealer's finance, and then just before signing on the dotted line say... "Oh actually I have the money to pay for this in cash" and watch the dealer cry.

Graham_Devon

mbga9pgf wrote: »

I have got in the habit with cars of arranging finance with the dealer, as some of their profits these days come for arranging finance.

What they dont expect to happen is me make the initial payment then pay the rest off the month later. :rotfl::rotfl::rotfl:

You can (I have) haggle extra discount by buying a car "on finance".

Some even put two prices on the windscreen. For example, finance price £5000. Cash price £5500.

To get the finance, you have to take a gold package warranty and an extremely expensive gap insurance package half the time.

Another way they do it is to say your car (part ex) will be worth at least £1000. So long as you go finance.

Herbie_Hancock_I_wish

Well, what can you say. I suppose, if we take the average, less than 60k in mortgage including loans ain`t so bad. Or is it? There are going to be people who are older, mortgage paid and a shilling in the bank but there is going to be a whole bunch of folk, I know one or two, who have far and away the kind of debts that the OP has suggested.
Example, young couple, 2 bed starter home, £200k!!!!!! 40 year old friend friend, nicely into 6 figures on a buy to let. Providing no , damages or voids only costs £1 a month to keep the tenant.