UK household finances stretched

doire_2

Kohoutek wrote: »

If everyone followed your advice we wouldn't have much of an economy though.

Germany seem to do OK with a nation of savers

doire_2

chucky wrote: »

we've been through the worse economic crisis in 70 years - why is this a surprise to anyone?

Who mentioned it as a surprise?

Kohoutek

doire wrote: »

Germany seem to do OK with a nation of savers

That's because they have a current account surplus.

HAMISH_MCTAVISH

doire wrote: »

Germany seem to do OK with a nation of savers

And that nation of savers concept has done so well for Japan.....;)

chucky

doire wrote: »

Germany seem to do OK with a nation of savers

yeah they've done great - bank bailout after bank bailout after bank bailout....

for a nation of savers they've had a lot of banks to bail out...

Loughton_Monkey

This article is typical BBC 'Nanny State' journalism that rushes to highlight figures and surveys that 'look bad'.

Reading the article properly, however, does not talk about doom and gloom generally. The main thrust is the difficulties of those still on credit, and their difficulty in getting any more! Well hallelujia. Are we 'bovered'?

For the majority of people, 2010 will have been a good year. The vast majority have kept their jobs. The Stock Markets have bounced back up. House prices have recovered slightly. Mortgage costs have not gone up and remain the lowest in history. Miserable savings rates remain, but have not got any worse, and most of us are 'maximising' what we can get nicely by oiling all the right wheels.

I am early retired, with some pension currently being taken (to about one third of my total spend), and all my projections show I should have been £13K worse off overall. In fact I am £25K better off than a year ago, despite Mrs Loughton Monkey splashing out £10K on a new bathroom! My own 'personal' inflation seems to be well under RPI. [Very easy to wait until your cable and mobile contracts come up, tell them you're leaving, and get 30% or more knocked off. Buy all the booze and Champagne in France......]

Not sure what 2011 will bring. Not so good for those possibly losing their jobs. But if, as the article suggests, some people are latching onto the new-fangled idea of 'saving', then that can only be good.

chucknorris

Thrugelmir wrote: »

I'd prefer to have £90k of debt to service and repay than £325k.

Would you? Why have 90k debt? Why not choose the 500k house, then sell it, release about 164k equity after paying your estate agent and solicitor then buy the 100k house outright mortgage free and have 63k (after paying your second solicitor) in the bank.

You made the mistake of focusing on the debt and missing the wider picture, the debt was good manageable debt because it came with decent equity.

RenovationMan

Thrugelmir wrote: »

I'd prefer to have £90k of debt to service and repay than £325k.

I'm sure that the £90k debt is as big of a mountain to climb for that mortgage payer as the £325k debt would be to the other. A mortgage is usually relative to your income, so someone on a £90k mortgage may struggle more than somone who has a £325k mortgage.

Only on here have I found people who 'earn' over £50k and are content to live mortgage free in a 2-up-2-down terrace. I am assuming that the kids are all in the box room. Oh well, each to their own, everyone has their own financial comfort zone.