A new wave of 'help' requests

Pobby

The thing is why is there so many folks around with debt problems.I can understand in the case of illness,redundancy,marital breakdown or even like Mike,being ripped off{have my own experience of that}.

Leaving the above aside,why have so many people got themselves into such a state.Has it been the ``feelgood factor``of very low interest rates coupled with huge equity growth in the housing market.

I don`t remember this happening in the 70s and 80s.For sure many of us suffered when Thatch`s economic revolution went horribly wrong at the start of the 90s but interest rates where going up at an alarming rate.

However,I do see people taking on debt as if it is of little consequence.I see it in my own family.Somehow it is as though some folks have lost any idea of what they are doing and expect that the economy will keep going as it has in the last few years.So is that few have factored into there borrowing periods when there may be axing of jobs,higher interest rates.Somehow I am seeing a repeat of the 80s but maybe worse.

Mike_St_Helens

Pobby wrote:

The thing is why is there so many folks around with debt problems.I can understand in the case of illness,redundancy,marital breakdown or even like Mike,being ripped off{have my own experience of that}.

Leaving the above aside,why have so many people got themselves into such a state.Has it been the ``feelgood factor``of very low interest rates coupled with huge equity growth in the housing market.

I don`t remember this happening in the 70s and 80s.For sure many of us suffered when Thatch`s economic revolution went horribly wrong at the start of the 90s but interest rates where going up at an alarming rate.

However,I do see people taking on debt as if it is of little consequence.I see it in my own family.Somehow it is as though some folks have lost any idea of what they are doing and expect that the economy will keep going as it has in the last few years.So is that few have factored into there borrowing periods when there may be axing of jobs,higher interest rates.Somehow I am seeing a repeat of the 80s but maybe worse.

Cool post, thanks.

Dont think itll come crashing, Thatcher seen to all the big corps (x nationalised) having any action/power...

But its tietering on the edge you know..

Pobby

Surely is teetering on the edge Mike.The big change between now and then is the debts involved imho.At its highest in the 90s my mortgage for £58k reached nearly £800 a month {including endowment}.A silly little mortgage by todays standards.I guess then the rate was around 12 to 13 percent.It is my guess that if interest rates rise to 5.25 per cent there will be a pile of pain for many.

I have friends with interest only mortgages at over a blistering £300k!

There is an interesting thread about how much do people get paid.To say that £27k per annum is the norm then I would say that is laughable.Right now with my micro business I would say that I am 30 per cent down on 2 years ago.Being in a position of no debt and very little mortgage {I am a silver poster lol} I can survive quite happily on that,however my wife has returned to work to just help out on the retirement savings front.

When you say that it won`t come crashing down you may be right Mike but I am not convinced.Certainly I don`t think we will have a Thatch type crash but with unemployment rising,interest rates rising and{if anyone wishes to flame me feel free} being lied to as to what the real inflation rate is I can`t see aa pretty picture on the horizon.Sorry folks to be a pessimistic old Jerimia but my opinion of what is happening now was based on thoughts of 5 years ago.I just got my timing wrong!

Edinburghlass_2

Mike_St_Helens wrote:

I have noticed recently that a few poeple on this board are posting complaining that lenders will not freeze interest, fees etc etc simply by being asked 1st time.

To begin for a lender, there must be reasons for them to justify this. They dont lend cash for free.

I no longer work for a bank, and work tirelessley for other peoples help, as others will verify on here.. but at the moment it does seem that people simply want lenders to stop fees, interest etc etc simply because they want to reduce debt !

If you need the reduction of fees etc then PLEASE call for help if you need it, if you dont need it then please dont ask for freezation of fees etc... play the cards, BT, Move Accs etc etc ect.

[/b][/i]PAYPLAN, NATIONAL DEBTLINE, CCCS[/b][/i]

I know this may sound harsh, but, I have noticed this.....

Mike

Harsh maybe, judgemental yes in that you may just be putting off people posting for help at all

Pobby

Oh bye the way Mike,I spoke to my local pub {sad to say struggling} landlord last night.It seems he knows the company you were involved with that have gone t-ts up.I didn`t realise that they owned Swallow hotels.Landlord said that the M.D was``flambouyant``.These pub chains seem like a bunch of rip off merchants to me.

joolz43

You might be right, but I guess so might Mike. Perhaps people expect too much, personally I want the opportunity to reduce my debt, something which wasn't possible while paying minimum payments.

It seems to me that you have to play a game with these companies, you reduce payments, they bombard you with phone calls. Then they default you after a few payments and then out of the blue freeze interest and accept the offer. It is a shame we have to learn this kind of lesson the hard way!

laurajayne

CCCS arranged freezing my interest for me...and although I ultimately left the fold...the intrest never started back up again.

Oh the joys of paying rent for two places (long boring story).....2 jobs, and still never made enough to cover even the minimum payments...what a mess.

On a slightly side note...I do get annoyed (ok, maybe not quite the right word...it'll come to me) when people post their SOAs on here, ask for help, then refuse to 'cut their cloth' on life's luxuries....I wonder what they want us to tell them? How to pluck money from thin air? And it's worse when they get all defensive regarding this, as to why they can't - little johnny can't be without Cbeebie or the like - he won't die without it you know.

Ok. Rant and thread hijack over.

kafka_2

Also some of us who are new on here and asking for help aren't looking for a free ride. I am currently working all the hours to make and impact on my debt.
Just wanting to know how some of the different companies work as Barclaycard were great freezing interest and charges and accepting a reduced payment whereas others such as Halifax just ignore you and keep slapping on £25 late payment fees and £25 overlimit fees each month putting you further in trouble.

I know I acquired the debt and am taking responsibility for it, I would rather pay it back in installments than go bankrupt whereby my creditors would get virtually nothing.

I have consulted Payplan and to be honest they weren't that helpful - their 'remedy' would potentially put me further into debt. I am talking to the CCCS aswell.

laurajayne

kafka wrote:

Also some of us who are new on here and asking for help aren't looking for a free ride. I am currently working all the hours to make and impact on my debt.
Just wanting to know how some of the different companies work as Barclaycard were great freezing interest and charges and accepting a reduced payment whereas others such as Halifax just ignore you and keep slapping on £25 late payment fees and £25 overlimit fees each month putting you further in trouble.

I know I acquired the debt and am taking responsibility for it, I would rather pay it back in installments than go bankrupt whereby my creditors would get virtually nothing.

I have consulted Payplan and to be honest they weren't that helpful - their 'remedy' would potentially put me further into debt. I am talking to the CCCS aswell.

I don't think Mike was saying all newbies are trying to get something for nothing.

That's what's so great about this forum...there are people that will help you - just not me for this particular question

kathfisch

kafka wrote:

Also some of us who are new on here and asking for help aren't looking for a free ride. I am currently working all the hours to make and impact on my debt.
Just wanting to know how some of the different companies work as Barclaycard were great freezing interest and charges and accepting a reduced payment whereas others such as Halifax just ignore you and keep slapping on £25 late payment fees and £25 overlimit fees each month putting you further in trouble.

I know I acquired the debt and am taking responsibility for it, I would rather pay it back in installments than go bankrupt whereby my creditors would get virtually nothing.

I have consulted Payplan and to be honest they weren't that helpful - their 'remedy' would potentially put me further into debt. I am talking to the CCCS aswell.

Kafka, I for one was not suggesting that every new poster was out to get rid of their debts easily - a 'free ride' as you say. I think the vast majority are keen to sort out the situation that they are in and do not expect it to be easy. Their hard work will be rewarded with the satisfaction of having turned things around themselves, and they'll not make the same mistake again.

Personally I think that the adverts that seem to be cropping up more and more lately... for debt management and IVAs rather than the previous norm of consolidation loans.... are fueling an impression that getting oneself free of debt might not be as hard as people thought. The responsible companies certainly offer a light at the end of the tunnel for those in desperate circumstances but perhaps some are simply not as badly off as they believe, often when luxuries that they 'couldn't live without' are removed.

I do not want to put anyone off from posting... I think its great how many new posters we have! If any of them are under the allusion that it will be an easy and painless process to clear a large amount of debt, well they will realise that is not the case, but hopefully by means of supportive and helpful comments and advise. We pride ourselves on being an understanding and supportive community and this should especially extend to those who are new and need advice that may seem obvious.