personal debt, & ongoing risks...

System

I bought a 2nd hand bike half on credit, do I count?

Really2

Joeskeppi wrote: »

I bought a 2nd hand bike half on credit, do I count?

Would have it been more for cash/ Could be bicycle biflation.:)

treliac

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. 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....................

Another excellent post on this subject dear to your heart. Like me, I'm sure you knew, some years ago, that the problems we are seeing now were on their way.

Yes, I am concerned about the many who lived on debt - they needed regulation in place to protect them imo. I'm also worried about the rest of us, cos we're all having to have to pay for their profligacy too.

We're heading for a very differently shaped society. The haves and have nots, who have become more polarised during Labour's reign are going to become even more divergent.

It's pretty scary to think we are going backwards in terms of civilisation when we have the advantage of technology and learning never available to earlier generations.

treliac

PasturesNew wrote: »

I paid cash for my 2nd hand car. Splashed out; instead of spending £2-3k which is enough for a car, I spent £6500 (less £1k trade in). I hope it will last me 10 years. Last car lasted 9 years and there was nothing wrong with it except I wanted to change it for a different style of car to meet a different set of needs/wants criteria.

StevieJ wrote: »

That's a bit spendthrift

Ah, but it doubles as a car and a home. PN's not daft.

Malcolm.

lemonjelly wrote: »

Erm.....
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?

If the government really wanted a consumer led recovery, they wouldn't be increasing VAT.
I thought the long term plan was for an export led recovery, hence the 'engineered' fall in the pound?

The (consumer) subsidies on cars e.t.c. were temporary and designed to see Labour through the election.

treliac

Malcolm. wrote: »

If the government really wanted a consumer led recovery, they wouldn't be increasing VAT.

But we worked out how much effect the VAT increase would have and it won't affect us a great deal.

Now what would really affect us would be an increase in income tax.

So, personally, I am much happier with the increase being on the former rather than the latter.

nearlynew

The increase in VAT is just more government theft.

Malcolm.

treliac wrote: »

But we worked out how much effect the VAT increase would have and it won't affect us a great deal.

Now what would really affect us would be an increase in income tax.

So, personally, I am much happier with the increase being on the former rather than the latter.

Me too. Now they just need to end VAT on fruit juices! :mad:
Point of principle. In any case I mix OJ 50/50 with water, better for my teeth that way.

Oops - I've off talking about unrelated items, again.

vivatifosi

lemonjelly wrote: »

My feeling is that consumer borrowing will continue to fall. People will need to adapt to having restricted access to credit, and/or more expensive credit. How this will impact on people will depend on their employment circumstances, & how well they manage personal cash flow.

I can see two interesting changes taking shape in terms of access to finance and wondered what the opinion of others is.

The first point I've noticed is increased knowledge among the poor and therefore use of the Credit Union movement. My local CU seems to be doing a roaring trade at the moment.

The second is the mooted changes last week in the structure of the Post Office which will allow people with bank accounts to undertake transactions at their local post office.

I think both of these are positive steps in the right direction to give access to finance to those who will find it difficult. However my concern is whether access to basic financial services like this could allow the banks to focus more on their "cash cow" customers and spend more time cutting off marginal users.

lemonjelly

treliac wrote: »

Another excellent post on this subject dear to your heart. Like me, I'm sure you knew, some years ago, that the problems we are seeing now were on their way.

Yes, I am concerned about the many who lived on debt - they needed regulation in place to protect them imo. I'm also worried about the rest of us, cos we're all having to have to pay for their profligacy too.

We're heading for a very differently shaped society. The haves and have nots, who have become more polarised during Labour's reign are going to become even more divergent.

It's pretty scary to think we are going backwards in terms of civilisation when we have the advantage of technology and learning never available to earlier generations.

Thank you treliac.:)

I concur with your concerns. I appreciate that much of my sentiment is coming from what I see in work, & what I learn from colleagues who do similar work. However it has to be of concern if the average debt is almost £58k. Of particular worry is that as a nation we owe more than we produce in a year. So in reality, it is unlikely we will be able to pay off the debt quickly.

If the dreaded double dip did occur, & we have a significant number increase in the jobless figures, we'll have even less money in the economy, & therefore less debt will be paid off.

Interesting comment regarding the haves & have nots. In my field, one area of concern for years has been financial exclusion. Despite the freely available credit in recent years, there is/has been a significant number of people who have little access to (& knowledge of) financial products & services. My feeling in the current regime of credit tightening is that this can only increase.