MSE News: Dump Sky and iPhones, struggling homeowners told

edited 30 November -1 at 1:00AM in Mortgages & Endowments
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  • Percy1983Percy1983 Forumite
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    I bet you my android phone is much more money saving... No apple premium tax for starters.

    Fancy a phone off?
    Have my first business premises (+4th business) 01/11/2017
    Quit day job to run 3 businesses 08/02/2017
    Started third business 25/06/2016
    Son born 13/09/2015
    Started a second business 03/08/2013
    Officially the owner of my own business since 13/01/2012
  • SpiggleSpiggle Forumite
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    *Seriously tempted to start a thread titled ' Iphoners of the MSE unite' the more I read this thread and the antagonism towards this frightfully useful device (which has Budgeting App btw) the more I think a cosy club of guilty owners should be formed to form a strong base of security where at least on a personal level we can ALL acknowledge that our respective Iphones need NOT be a barrier to good, well thought out Budgeting and financial prudence.
    (Just as I think us poor Benefits Claimants ought to do the same the Fellowship of the Dole where we can hash out our respective woes and hopefully educate the rest of MSE to drop their prejudices and meet us as where they might end up given the woeful state of the Economy).
    Nuff said
    Let two orderly queues be formed.
    :beer::beer::beer::money::money::money::D:cool:
    and we is gonna save a pretty penny as well USING OUR IPHONES!!!!!
    !!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!:eek::eek::eek::eek::eek::A:A:A:T:T

    Are you sure you're unemployed? I'm sure there's a job or is it jobs going at apple?
    Mortgage Free October 2013 :T
  • opinions4u wrote: »
    You've misunderstood it.

    lol, how very helpful!

    if it doesn't mean that banks create money, what does it mean then?

    The point I was making is that they don't need to have £100k in the pot to lend £100k - thats true....
  • edited 2 September 2011 at 2:04PM
    opinions4uopinions4u
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    edited 2 September 2011 at 2:04PM
    lol, how very helpful!

    if it doesn't mean that banks create money, what does it mean then?

    The point I was making is that they don't need to have £100k in the pot to lend £100k - thats true....
    No it isn't. You have completely missed the passage of time in your assumptions. A common misconception for people who read that "Fractional Reserve Banking" Wiki article and assume some sort of dark magic is taking place.

    You can argue that banks "create" money. They pay 2% interest and charge 4% interest - the difference is what they've "created". It takes years for this to grow a bank in size to any noticeable extent (imagine how long 2% compounding interest takes to grow your savings to something worthwhile).

    But this creation of money in their balance sheets has come out of their borrowers' pockets. It's real enough. It does exist in much the same way as Tesco buy in a bunch of bananas for 25p and sell them for £1. Like any other business, they make profits. Or at least try to.

    A bank cannot lend money it does not have. They are insolvent if they do this. Their balance sheets have to balance and they wouldn't if they've lent money that they don't have. They are also insolvent if they lend money out that savers (or wholesale funders) then go and withdraw and the bank is unable to replace by attracting new savers. Remember Northern Rock?

    Your assertion that the amount they lend is only backed by funding of 30% of that amount is wrong. Indeed, in the example below the deposits total 115% of the lending.

    Lloyds Banking Group's balance sheet is an example (page 5). I've simplified it for you.

    Loans: £592.6bn
    Customer deposit and wholesale funds: £691.6bn

    They have more cash saved (including the wholesale funds) than they have lent out. The savings are accounts held by ordinary folk and businesses. The wholesale funding typically comes from pension funds around the world and other institutions.

    The difference is their capital (effectively the money that belongs to shareholders and is used to cover losses if any occur) which they are required to have a certain amount of by regulation, law and international convention.

    So which do you think is true? The audited reports of an international banking group or a conclusion jumped to from reading a Wikipedia article that is often used by conspiracy theorists?
  • ALIBOBSYALIBOBSY Forumite
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    Well if done rightly although some peeps may be a bit miffed at being called, I think most will find it either a gentle reminder or a shock wake up call. I reckon they should quote figure for the monthly payment on that persons loan if the rate goes up by certain amounts say a 1/4%, 1/2% and 1%-this could also be sent out in writing if they person would like it. This would give people the oportunity to consider their finances and how things could change if/when the rates finally creep back up.

    I think it is extremely simplistic just to say dump the i phones and sky, to me personnally I find smoking and/or drinking to be far more a waste of money and higher up the list of stuff to cut before those 2.
    A better idea is to give the people the figures and perhaps offer to send out literature or talk through how to budget. Tell people how to define the priority bills that have to be paid first-rent/mortgage, council tax, heating. Then how to list the rest of the bills in order to see what can be cut/dropped first in order to cover the other bills.

    For us we have virgin (no iphones), but for us and the kids the virgin package (phone/tv/internet) provides work-oh is an it contractor so lots of contact to agents and where he is working via emails/log ins plus online submission of time sheets etc, pleasure-kids play games online via pc/wii/ps3, and information-sites like this our online banking/bill payment etc.
    OH does have a blackberry- for some reason those in IT seem to prefer the blackberry on the whole? But again it is mostly for work use and after the contract is up if we have to its expendable-most months the bill is under 25 anyway. I have my old nokia it does have quite a good camera which is handy when out with the kids, but otherwise just calls and texts-my bill is about 10 per month.
    We don't smoke or drink (maybe one bottle of wine now and again 2 a month if that?) and with 4 kids youngest age 1 we don't go out much-maybe out for a meal together once a year on OH birthday and a stay at home meal in on mine (my birthday is over christmas/new year holiday so difficult to go out).

    So for me I don't feel guilty about our virgin package i have a budget and we are doing some saving-could cover tv blowing up recently with cash from savings. Have made some overpayments on the mortgage and actually are probably better off than we have been in years-but if NR were our bank we might well have had the call as our credit file isn't the greatest (give it a couple more years lol).

    The important things is to ensure interest rises don't give people a sudden shock-I have already worked out where we can cut some slack should rates shoot right up and from the short period OH was out of work last year after redundancy we have a "min" budget of what the absolute bottom budget we could live on is.
    People need to be prepared and this could be a good reminder-some will be getting used to the extra cash from low mortgage pays and using it for fuel/food/petrol costs going up when they need to look at cutting back more with a view to covering increased mort costs.

    ali x
    "Overthinking every little thing
    Acknowledge the bell you cant unring"

  • ALIBOBSYALIBOBSY Forumite
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    Just a thought tho I reckon this sort of call is no use to MSE's, as thats kind of the point of being on a site like this rofl.
    ali x
    "Overthinking every little thing
    Acknowledge the bell you cant unring"

  • Re Lloyds Glowing financial statement. What happened to the shareholders stake in the bank. Why is the share price so low ?
    Do banks need shareholders ?

    J_B.
  • pineapplepineapple Forumite
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    opinions4u wrote: »
    Most banks terms and conditions already allow for two way feeds of information with the credit reference agencies. It's already happening. No searches show up.

    It's not new. It's something the customer has already signed up for.
    I know this happens when a loan is taken out but are you saying this happens routinely during the period of the loan? Personally I think if the payments are being made on time they should keep their nebs out. I would be furious if I got a call. I mean - hey - the same principle could apply to so many things in our lives. Why not a series of professionals calling to check up on health, hygiene, childcare, diet... Just to make sure we are on the right track of course :T
  • wouldbeqaulitymoneysaverwouldbeqaulitymoneysaver Forumite
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    Spiggle wrote: »
    Are you sure you're unemployed? I'm sure there's a job or is it jobs going at apple?
    yes I am unemployed and have been so for many years.
    I wish for your sake you would get off this marketing thing re Apple.
    Maybe MSE has a hang up about Apple just because it is behaviing like Microsoft and being a pain in the !!!! to both customers and all who depend it on for making a living.
    I love my Iphone cos it enables me to do so many things I have not been able to do, with the added advantage that I can do things with my mobile independent of eqaully beloved Laptop.
    I love it's multi-functionality for instance I have an Audio professional Sound Recorder £3.99 I can professionally record well what the hell I like giving me much scope as a would be Podcaster, and the capacity to play Journalist to some rather far out stuff happening in Cyberspace.
    The maths apps are life saving.
    I can download a Map on my GPS and from there explore the Highlands. A talk and texter will be absolutely no good there!
    I can use GPS to help me navigate, find local faccilities if I travel.
    I can blog etc all on the move.
    If we have the [inevitable] crises here I can document it on my Iphone and send it to the Office.
    ( I might want to keep its multi-functionality a secret only say so if I want too, need too otherwise keep my privacy)
    I could use it for sleuthing to get my stolen Orbit Gold Medal bike back 18'' and the thief have no clue I am onto him/her with his/her excuses.
    I am not thinking very well. I am too tired.
    If I was job seeking the Job Centre even has an app on the App store plus there are numerous Job seeking applications.
    I get the feeling MSE misunderstands the Iphone due to ideas that it is somehow extravagant or unnecessary Yet rightly it provides us all with info on how to get one. (and why the hell not!) Mine is PAYG, as I own it it is at the cheapest way possible.
    If I had a mortage and got the phone call I would regard it as both intrusive and patronising and such attitudes by companies foster the presence of pestilential busybodies who have no business finding out about my business because they don't care enough to stop the stigma of disability et al and are interfering nuisances.
    Hope my reply is at least partly clarifying and I dont look totally irrational as far as a prospective MSE is concerned.
    #TY[/B] Would be Qaulity MSE Challenge Queen.
    Reading whatever books I want to the rescue!:money::beer[/B
    WannabeBarrister, WannabeWife, Wannabe Campaign Girl Wannabe MSE Girl #wannnabeALLmyFamilygirl
    #notbackyetIamfightingfortherighttobeMSEandFREE
  • wouldbeqaulitymoneysaverwouldbeqaulitymoneysaver Forumite
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    The Banks did not give a flying swearword about ballooning credit that was unseating the MSE in us all now they turn table and pretend they care, as if!
    NB my debt status on Debt Free Wannabee is my Bills Account got overdrawn and the bank has been screwing me for charges ever since. It is totally exploitative and wholly unacceptable to exploit the customer as do many other key sources (landlords, banks, supermarkets, etc) hence posts above.
    Best of wishes to ALL in saving money AND enjoying life and knowing how to spend it as well as save it!!!!
    #TY[/B] Would be Qaulity MSE Challenge Queen.
    Reading whatever books I want to the rescue!:money::beer[/B
    WannabeBarrister, WannabeWife, Wannabe Campaign Girl Wannabe MSE Girl #wannnabeALLmyFamilygirl
    #notbackyetIamfightingfortherighttobeMSEandFREE
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