What's Changed?

Squirrel29

I've just posted similar on Pink Angel's thread but I wanted to pose the question, what has changed in the last 30 years or so in respect of so many in debt. I mean, families were hard up then, often with only one wage coming in. I think the following:-

Ease of obtaining credit. People used to make an appointment with their bank manager and BEG for a loan!

The loss of budgeting properly ie housekeeping, saving for what you wanted.

Debt isn't seen as so shameful now.

Can anyone add to these?

Pink-Angel

Squirrel29 wrote: »

I've just posted similar on Pink Angel's thread but I wanted to pose the question, what has changed in the last 30 years or so in respect of so many in debt. I mean, families were hard up then, often with only one wage coming in. I think the following:-

Ease of obtaining credit. People used to make an appointment with their bank manager and BEG for a loan!

The loss of budgeting properly ie housekeeping, saving for what you wanted.

Debt isn't seen as so shameful now.

Can anyone add to these?

Hi Squirrel,

Here are a few thoughts from me.

Credit is given without any real consideration as to whether people can pay it back, as well as given too easily.

Family history of debt. My dad has an addiction so although he worked my mum struggled to make ends meet and used creidt cards. Getting a credit card was 'normal' to me when I was 18 because I'd seen my mum use them regularly.

We live in a materialistic society. People want things 'now' and get looked down on they can't keep up with the Jones, or latest trends.

More pressure for people (esp children) to have the latest gadgets. Parents get themselves into debt to make sure their child isn't the odd one out.

Sparklyfairy

Also to add...now both parents tend to work & bring home money which in turn has popped up the price of houses - so we're paying MUCH more now than our parents ever did - and there's not much left for holidays, clothes, food or many extras we want & with that credit was given away freely & we spend, spend, spend!

maganan

Also no-one tends to save up for the things we want/"need", so we just pull out a card and buy thinking we'll pay it off when the bill comes..............but something always comes up

We rarely use cash so its somehow not real money, i suppose when you got pay packet with tenners in you had to go home and divide it up for bill and see what was left..................this has been a big change for me and now i really dont like parting with my cash but had no problem handing a card over

Its so easy to get a credit card and once you've got one the offers on more come flying in

You can buy big items like furniture with no credit checks etc you just need a bank account

For me (to my shame) i also felt "i work hard, i've got 4 children, i'm reasonably well paid, i deserve a few nice things the irony is if i'd planned and budgeted a bit more i could have had lots of nice things and money in the bank................you live and learn

Marine_life

Here are some thoughts from me:

1. Short termism: The attitude that "I could be hit by a bus tomorrow, so enjoy it now". The fact is people are living longer so the bus theory doesn't hold.

2. The "mates all in in together" theory: i.e. because my best mate / sister / mum are also in debt means we are all in the same boat so that makes it ok.

3. Lack of any sort of long term plan: I recently went to an IFA who was stunned to see I had a life plan of when I wanted to retire, how much I needed and how I was aiming to get there. It doesn't need to be sophisticated but have an idea where you are going.

4. Lack of cash visibility: Because credit is on paper and not 10 pound notes being pulled from a wallet it just does not seem real.

5. A change in value as to what constitutes "luxury" i.e. the belief that everyone derserves a foreign holiday at least once a year. I had never been on a plane until I was 24.

I could go on.

bargainbetty

The disposable society and the speed with which something becomes obsolete.

TVs are half price within a year, the latest technology is always the 'must-have' and things are not built to last. I had to get a new washing machine, and the salesperson offered me a warranty that would cost over £130 per year, but would guarantee me a new machine at any time should my machine break down. Ever. Which sounds really good. However, my last machine was purchased in 1997 for £300, and only broke in December 2010. When I pointed it out, she said 'Well, machines aren't built to last that long, you'll get 3-6 years if you are lucky.'

Why should we accept that when machines can last more than a decade?

The ease of available credit - too easy, too quick and no sense of personal responsibility for maintaining your own finances!

grey_lady

Living standards are better than they were 40 years ago, which IMHO is a very good thing, debt isn't bad if it's managed well.

Squirrel29

I think definitely trying to keep up with others. The times I've agreed to go out for meals or concerts as I didn't want to appear a 'party pooper'. I think a meal
Out or a show was a rare treat back in the day whereas it's normal now.

choogirl

Hello

I think the internet can also be blamed.

How easy is it to apply for a credit card or loan online?

You can also shop online for most things in the comfort of your own home using a plastic debt card. Its so much easier than having to go out.

I also agree with some of the other posters - keeping up with your friends/neighbours plays a big part.
Also Maganans comment rings true about not having to save up for something just pull out the plastic debt card.

RAS

Some people were much worse off financially then. My mother worked full-time from when my parent's split up. She only got family allowance (Child benefit) for the younger children and would have been better off financially not working. She got no help with housing costs despite being in council housing. The family next door spent 1-2 percent of their joint income on housing; she spent over 20 percent on less than one third of the family income.

People really did not expect to go abroad on holiday; whilst the currency restrictions were in place it was very hard to do so.

Very few people had cars and public transport was generally quite cheap. We lived close to our work as a rule, mainly within walking distance.

Credit was very hard to get; I remember my mother being told that she needed to get my father's approval for an HP agreement on a radio ( the interest rate was less than inflation at the time). I blew my lid and pointed out that (by that stage) she had a mortgage, which was very rare for a woman.

The mantra however was, cut your coat according to your cloth.

Reading here, there are folk whose situation is as hard than ours; we went hungry, cold and were dressed in cast-offs like some kids today. However, there is no way my mother would have been able to access the sort of credit that is available to people these days, even with a full-time income.

joeblack066

Definitely a change in attitudes, my grown up children all have takeaways regularly, which would still be a rare treat for me, and buy glossy mags or bags of expensive sweets. Luckily they are all sensible and do this with disposable income, and none of them have credit cards or overdrafts! They have also all carefully built up their credit records with carefully managed credit such as car loans that have all been paid on time! But they are all bombarded with offers of more credit, and if they didn't have the resolve that they do, could easily get in a mess.