UK Banks and Building Societies write off £20 million pounds a day

JustKeepSwimming_2

Really2 wrote: »

I think it is mainly done to illustrate how debt goes up, it is interesting to here how peoples attitude to debt have changed and that debt on cards that has not hit interest penalties is not debt. (not a dig it is genuinely interesting)
As I say I do the same, but I do class it as a debt, anyone who spends every month on a card is continually in debt in reality. We just don't class it ourselves as we know we will pay it back.
Card companies don't make that distinction, you are in debt.

It does say a lot about attitutdes to debt - I know I'll pay off in full each month as I have more in savings than I could run up on a cc over a few years, even allowing for unplanned expenses.

But I'm always very careful (tight? :rotfl:) with money & always stick to a budget. Some friends laugh at me for doing so, but they're the ones with £1000's of debt on their ccs. It still doesn't "feel" like debt to me, although you are absolutely right when you say it is.

lemonjelly wrote: »

The knock on effect of this has been (for many I see) is that budgeting skills have decreased.

It is why I am a supporter of financial literacy education, because too many people are unaware of the products & their implications for them.

I was lucky & had a brilliant form teacher in UVI who offered us the chance to learn about budgets/household economics (she was an economics teacher) during our last year form time, before we were let loose in the world. I'm sure this made a huge difference to those of us that took her up. I've not met anyone else from different schools who had similar help, which is such a shame. This was in 86/87 & I wonder if things have improved since then?

Really2

michaels wrote: »

Hmm - what about the fact that I work for 30 days each month before getting paid? Applying the same arguement wouldn't it make sense to offset this 'asset' against debts that are paid off every month.

Having worked for company that went in to liquidation you cant count on it. You are not even entitled to benefits until your leu of notice is up.

Although wages are assts they are never guaranteed.

lemonjelly

Really2 wrote: »

Having worked for company that went in to liquidation you cant count on it. You are not even entitled to benefits until your leu of notice is up.

Although wages are assts they are never guaranteed.

Quite rightly though. You may be out of work, but technically/legally you are still employed during your notice period, & are being paid by your employer for that time.

(NB if your employer does go bust, you will still recieve your entitlement from the National Insurance fund, therefore still have your income for this period.)