MSE News: Dump Sky and iPhones, struggling homeowners told

edited 30 November -1 at 1:00AM in Mortgages & Endowments
128 replies 15K views
2456713

Replies

  • chattychappychattychappy Forumite
    7.3K Posts
    ✭✭✭✭
    tgroom57 wrote: »
    I wish that banker's bonuses were similarly non-essential.

    Yeah right...
  • LilacPixieLilacPixie Forumite
    8.1K Posts
    ✭✭✭✭
    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.
    MF aim 10th December 2020 :j:eek:
    MFW 2012 no86 OP 0/2000 :D
  • worried_jimworried_jim
    11.6K Posts
    10,000 Posts Combo Breaker
    ✭✭✭✭✭
    I haven't got Sky or a contract phone because I AM paying a mortgage.
  • edited 31 August 2011 at 12:08PM
    poppy10_2poppy10_2 Forumite
    6.5K Posts
    Part of the Furniture 1,000 Posts Name Dropper
    ✭✭✭✭
    edited 31 August 2011 at 12:08PM
    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.
    poppy10
  • patchwork_catpatchwork_cat Forumite
    5.9K Posts
    ✭✭✭✭
    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.

  • angukanguk Forumite
    3.4K Posts
    ✭✭✭✭
    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.
    Dum Spiro Spero
  • pixwixpixwix Forumite
    122 Posts
    Part of the Furniture 100 Posts Combo Breaker
    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!" :D
  • edited 31 August 2011 at 12:23PM
    jimjamesjimjames Forumite
    14.5K Posts
    Part of the Furniture 10,000 Posts Photogenic Name Dropper
    ✭✭✭✭✭
    edited 31 August 2011 at 12:23PM
    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.
    Remember the saying: if it looks too good to be true it almost certainly is.
  • beachiebeachie Forumite
    463 Posts
    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.
    Mortgage: [STRIKE]Jan 11 - £91830 [/STRIKE][STRIKE] Jan 12 - £89'199[/STRIKE] May 14 - £69'999 Car Loan: [STRIKE]Jan 11 - £3658 [/STRIKE] July 12 - £0! Credit Card: [STRIKE] Jan 11 - £3300 Jan 12 - £2250 [/STRIKE] Oct 13 - £0

    MFiT-T3:#43 (Half Mortgage) April 13 - £10719/£42875 (25.00%)
  • vickyanne_2vickyanne_2 Forumite
    36 Posts
    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.
This discussion has been closed.
Latest MSE News and Guides

A guide to council tax bands

Lower your band & save £1,000s

MSE Guides

Cinema MoneySaving tips & tricks

Including year's 2for1 movies for £1

MSE Deals