MSE News: Dump Sky and iPhones, struggling homeowners told

chattychappy

tgroom57 wrote: »

I wish that banker's bonuses were similarly non-essential.

Yeah right...

LilacPixie

Who is it getting these calls?? Is it only people who have approached these lenders saying they are struggling or is it an accross the board telephone campaign?
I must admit we are quite comfortable mortgage wise but equity wise we only have about 80% ltv and I would be quite annoyed if my lender called me to 'suggest' I downgrade my phone package or TV or whatever. It is fair enough if you are struggling because mortgage should always take priority over 'luxury' items.

So i'm sitting on the fence.

worried_jim

I haven't got Sky or a contract phone because I AM paying a mortgage.

poppy10_2

Seems like a sensible move to me. If you look on the DFW board there's an apallingly high number of people who are downing in debt yet are unwilling to consider giving up their £60/month smartphone subscription or their £80/month Sky HD package. Sadly some people do need to be given basic lessons on prioritizing their spending, even if it sounds patronizing.

Random example from a new thread on DFW today (i won't post the name or link):

Monthly Expense Details
Mortgage................................ 455
Mobile phone............................ 25
Satellite/Cable TV...................... 65
Groceries etc. ......................... 500
Clothing................................ 50
Presents (birthday, christmas etc)...... 30
Haircuts................................ 25
Entertainment........................... 400

This from someone who is £23,000 in debt, including an £8,000 unsecured loan to the taxpayer-owned Northern Rock. Unsurprisingly rather than looking at cutting down their unnecessary spending, they are looking at getting a consolidation loan which will only store up problems in the future if the root overspending problem is not addressed. The banks are doing these people a favour by giving them a reality check.

patchwork_cat

Do people not realise the priorities of life. Equal no 1 a roof over your head, feed and clothe your family and keep warm.

Everything else comes after the priorities of life, they are the fripperies and priority of extras will vary from person to person, my pets would be very high on the list of extras.

anguk

busiscoming2 wrote: »

Although most people realise the s**t they can get into if they can't pay their mortgage, I think a lot of younger people believe it is necessary to have Sky subscription, huge TVs and iphones etc.

Do I think they should give them up if needed to pay their mortgage - YES!

It's not just younger people, I know many folks in their 40s who think Sky, huge flat screen TVs and the latest mobile phone are essentials.

pixwix

I couldn't agree more. I have neither. I can't afford them and that's that.

Most of my neighbours - many unwaged - have children who spend more than I do on consumer bling - in fact whose pocket money is often more than my disposable income after (real) essentials.

The MSE pages warn often enough about setting financial priorities, but I have to admit I prefer the spoof advert I saw on an American website for a book (not real) guaranteed to put an end to all our financial problems. It was entitled "Don't Buy Sh|t You Can't Afford!"

jimjames

Why is it unreasonable for banks to give people advice on how to avoid losing their homes? Preventing people wasting money on unnecessary items rather than concentrating on debts that actually matter or helping them building up a savings buffer is surely something that should be encouraged not criticised.

More shocking is the number of people who have absolutely no savings at all and have no means to pay an unexpected bill or mortgage increase. Living below your means is nothing new, even Dickens had reference in his books.

In relation to the story yesterday about young people being unable to buy a property for the next 10 years, a couple were interviewed saying how they couldnt afford to save anything as every penny went on essentials. In the background was their massive LCD TV and Sky box. Definitions of essential clearly vary depending how much you want to do something.

I remember the year or two saving for our first house, it certainly wasn't a comfortable time but we saved 100% of one salary to make sure that we would have a deposit.

beachie

poppy10 wrote: »

This from someone who is £23,000 in debt, including an £8,000 unsecured loan to the taxpayer-owned Northern Rock.

The only essential things on there are the mortgage and groceries - which are really high anyway!

The rest are luxuries.

vickyanne_2

Personally I'd tell them where to go as how can you be sure it is a genuine call? I never discuss anything financial or important with anyone who phones me out of the blue, only if I know 100% who they are etc. I just tell then to write if they really want me.

I'd be very angry anyway, not at what they're saying but at being checked up on like that.