Is having to much "stuff" the problem ?

lady_fuschia

Sorry - wasn't being @rsy! Its just something that bugs me!

I think that finances today can be far more complex than in the past- there may not have been so much stuff to buy in the past- but you also didn't have credit card and loan offers bombarding you from every which way, hundreds of different options when it comes to pensions, savings and insurance- and of course, more people go to university and college now, delaying entry to the jobs market and building up more debt, house prices are far higher- its all a lot more complicated.
I do think that giving people a sound financial education whilst they're still at school- teaching about compound interest, card charges, pensions, mortgages, and all thsoe other bewildering things would help more people to take responsibility for their own financial well-being. True, some debt would still be unavoidable, and some people would still overspend, but at least they'd be going in eyes open.

beer2006

ZTD wrote:

It isn't. That's the doubt of age speaking. If you were 18 now, you'd cope as easily.

I wouldn't, because when I was 18 I couldn't get a credit card, BC was the only one around and they turned me down, I couldn't get the loan from Nationwide for the flash car I wanted............ and thankgod I didn't get either, thats what I mean by more difficult

Callisto

Bestthingsinlifearefree wrote:

We have some rainy day savings.

I am just wondering how much debt is the result of needing "stuff".

1) A computer at home - Yes, we have two pc's, but we bought them seperately before we moved in together. I paid for mine with cash outright, whereas boyfriend had his with a two year loan, now paid off! :rolleyes:
2)Have just one car - We currently only have one car (12 years old), but we are seriously considering buying another old car for me to learn to drive in.
3)No camcorder - Nope, and no interest in owning one, could borrow one from a relative if I ever needed to
4)No ipod, No, but I am saving for a Creative mp3 player, but it will take me some time yet as I only have £15 towards it and have more important things to save for at the moment.
5)no sat nav - No
6)until recently one pay as you go mobile between 2 of us. One PAYG mobile each, spend less than £10 per month each on top ups and the phones are beyond ancient, wouldn't want a camera phone anyway, I have a camera already!
7)one tv in the house (non plasma) - Same here, bought it about a year ago from Cash Converters for £60, when the TV before that packed up.
8)no lap top. One lap top, boyfriend was given it for free.
9) no play station - We have an Xbox which was a Christmas gift about three years ago.
10) we don't have many dvd's or CD's. - We have a 'moderate' amount of dvd's/CD's/Xbox games, however we always look out for bargains and never pay full price, or ask for them for birthdays/Christmas
11) we don't have the full sky package. No Sky, just freeview.
12)no digital camera. One digital camera bought about three years ago when we had the cash to buy it.
13) No dishwasher. No.

We have credit card debts, but no other debt. My credit card took a real bashing when I was at college, buying stuff I needed like food, and stuff I didn't, such as clothes, concert tickets, general junk from Ebay! I also went on holiday to Australia in 2004 and added another chunk of debt (around £700) to my card, but I don't regret the holiday at all! Also, only being able to afford minimum payment while I was unemployed for 6 months really wacked the interest up, only managed to change to a 0% card after I'd started work again, so was only paying minimum payments for about 8 months.

We do have savings as we are saving to get married in 2008 and are determined not to take on any further debt for one day! We also have a few hundred pounds in emergency savings, but I just can't bring myself to pay this off the debt in case either of us lose our job!

I do think the majority of my debt has been spent on 'stuff', I used to be a real hoarder of stuff, but I'm slowly changing my ways... I never buy something now unless I already have the money saved for it and I have sold/given to charity/chucked out several black bags of stuff... I am now trying to achieve the zen state of having enough belongings, but not too many!

Willsnarf1983

Bestthingsinlifearefree wrote:

1) A computer at home Yes the one thing to show from my debt
2)Have just one car Yes, company car but am on my own
3)No camcorderNope
4)No ipodCreative Zen yes!
5)no sat navSat nav, yes require it for work as have no clue around where i actually work
6)Contract, camera phone...new one tomorrow as well yay!
7)one tv in the house (non plasma)Yes, £50 for 28inch tv
8)Nope
9) no play stationNo but have an xbox
10) we don't have many dvd's or CD's.Not really, flogged them all
11) we don't have the full sky package.Nope
12)no digital camera.Got it when i went to Australia wuith money saved up by my aunts for 18 years
13) No dishwasher.Nope

My debt is not down to buying stuff, when i do buy it i buy it after saving up

Will

climbgirl

ZTD wrote:

I would agree with that lady_fuschia. I think the worst time for debt is when people suddenly become "richer". Whether that's because they've left school and have a job, or left university and got a job, or they've suddenly managed to get themselves "a nice little earner".

I think the extra money makes people go a little mad, and thats when the debt starts to pile up. Especially when people view "debt money" in their current account the same as "earnings money".

Then any sort of hiccup later - and there's trouble...

Yes, I think you're right ZTD. There are so many reasons why people get into debt as people on this board can testify to, I don't doubt that for some it simply is a case of buying too much stuff.

But perhaps it's less about stuff and more about people not living within their means and saving for the future and the unknown. Like lady_fuschia says, that's impossible when you're living on an incredibly low wage and trying to decide between wholemeal bread and hte cheaper 10p white bread.

But equally, there's a number of people who earn a decent amount of cash and choose to spend it all. Or get a payrise and just up the spending. With little regard to any potential hiccups down the line.

ZTD

climbgirl wrote:

But perhaps it's less about stuff and more about people not living within their means and saving for the future and the unknown. Like lady_fuschia says, that's impossible when you're living on an incredibly low wage and trying to decide between wholemeal bread and hte cheaper 10p white bread.

But equally, there's a number of people who earn a decent amount of cash and choose to spend it all. Or get a payrise and just up the spending. With little regard to any potential hiccups down the line.

It may also be that the low wages "condition" people into spending all they have. After all - how long would you panic about not saving when you have to spend everything month after month? And big payrises are usually quite rare, it's the "creeping" payrise that more the norm.

So you go seamlessly from being poorly paid and in relatively high debt and spending everything, to being richly paid and in relatively high debt and spending everything...

Then there is a problem which takes you back to being less-well paid again. That's where crises probably start.

Anastacia

I am trying to buy cristmas presents for my kids at the momeent. traditionally its the only time if the year they get new clothes etc so they get quite a bit. My eldest son can only think he would like a hat. Its a ridiculously expensive hat in my opinion (£25 :eek: )but hes a typical teenager & he doesnt have a want list as long as your arm.

I think we have gone on to auto criticise of the material society somewhere along the line. There are certainly people that are very materialistic & then there are people who arent. There is more stuff around than ever before buts its cheaper too, thats why we have it. My parents first vcr was £499, not a DVD player in asda is £19. Thats why we have more stuff than our parents at the same age.

There are a multitude of problems going on here. Financial literacy, poverty, poor planning & over ambitious aspirations plus loads more. Having stuff gets you in debt is just over simplistic & misleading (just ask a burglar!!!:D )

anniestar

Bestthingsinlifearefree wrote:

1) A computer at home (both use internet access at work;) .
2)Have just one car (I cycle to work). Our car is 6 years old ie. year 2000 reg.
3)No camcorder
4)No ipod
5)no sat nav
6)until recently one pay as you go mobile between 2 of us.(mobiles are not camera mobiles) only when she became pregnant did we buy a mobile for me.
7)one tv in the house (non plasma)
8)no lap top.
9) no play station
10) we don't have many dvd's or CD's.
11) we don't have the full sky package.
12)no digital camera.
13) No dishwasher.

etc etc

1) Yes a reconditioned one from a FANTASTIC company simply as we needed one to continue tio mark GCSE exams
Best.

2)1 car a J reg(ie 14 years old)
3)no
4)no
5)no
6) yes one 2 year old phone ant the original"brick"(the huge philips phone)
7)no
8)no
9)no
10) no dvd's dont have one.Cd's only bought 1 full priced cd in the last year
11)we DO have sky-not top package though.
12)yes-got last Feb from tesco £30 reduced from £99.Thanks to a post on here I think.
13)no.

Diamondgirl

I believe some people acquire debts due to wanting stuff rather than waiting until they can afford it. However, as already posted, there are many reasons while people get into debt. Personally, I had to change jobs 7 months after moving house. This meant a reduction in salary and more over reliance on credit to meet essential payments including mortgage repayments (if only Id found MSE a couple of years earlier!)

I have the following:
1) A computer at home (bought on credit 7 yrs ago so part of debt; but continually crashes)
2) One car; bought last one new in 1996 and paid off loan in 2000 ~ wrote off in 2005 so bought a 1995 run around
3) Camcorder, have had for 5 yrs (to record family memories & doubles up as digi cam ~ required for imminent ebaying)
4) no ipod
5) no sat nav
6) until recently PAYG mobile; then got £30 @ month contract with Orange with free wireless internet ( only £12.01 more than £17.99 already paying but to be honest preferred control of having PAYG )
7) one tv in the house (non plasma)
8) laptop ~ bought outright with family loan repaid a month later with money earned marking GCSE exams online (pc wasnt good enough spec for this and now have it to earn further money exam marking)
9) no play station
10) very few DVDs but a fair few CDs but have bought very few in last 4 years apart from b'day/Xmas money
11) dont have Sky or cable ..... just freeview
12) see (3)
13) dishwasher bought with house

Cerenia

ZTD wrote:

It isn't. That's the doubt of age speaking. If you were 18 now, you'd cope as easily.

Remember you're 18 - you're never going to die, and the world quakes in fear of you...

18, can get loans, get credit cards, go spending on all the latest gear, start getting into debt (unless you're money-wise)