Pay off your debts

pqrdef

Mrs_Bones wrote: »

As for making him look out of touch, I think many people's already got that idea before he even stands up to make the speech.

He's an interesting species, our Dave - Chipping Norton Puritan.

Unfortunately he's surrounded himself with a whole bunch of Bullingdons whose thinking is on the same level.

It's a good job we don't get to hear the conversations that go on between these people.

pqrdef

Looks like Dave has nothing to offer but blood, toil, tears and sweat.

And Sam wore red, will we ever hear the last.

DervProf

RenovationMan wrote: »

Really ? :T (to use your own top class remark)

If you are comparing the finance of countries against your personal finances then the question would be where would the growth come from?

From comments you have made on here (please correct me where I am wrong, but let's try not to be too pedantic about it, the point is the thing) it would appear that you have been in the same house since 1995 which has been paid off. You have a self-contained personal finance system that probably consists of a stable/static amount of income and stable/static outgoings with the occasional big purchase to replace things when they fail or become obsolete (i.e. computer, TV, etc.) and occasional holidays. i.e. you have no children, so you don't suffer the variations to expenditure that those with children suffer, so your expediture is pretty static.

Extrapolating this to the finances of a country would result in stagnation of the economy and job losses. The only way we could have an economy so static would be for all the variables to be static, so no increase in population and stunted innovation. Probably akin to the sort of society we had pre-industrial revolution.

I'm not saying that a country should not take on any debt. Indeed, I have taken on debt when required. Your use of the word "growth" in the first paragraph raises an interesting point. It seems that the "developed" world wants growth, no matter what. And it seems to me that growth can be produced from debt. The danger is (as we are seeing) that simply increasing debt can make it seem like there is growth in an economy (in the same way that if I borrow £20K for a new car, it makes it look like my personal finances are improving or growing). Of course, borrowing money to start or improve a business can be a good idea, but sometimes it pays not to keep borrowing money to throw at a business that is losing money. New labour did a fair bit of borrowing, so I believe. They also sat back and watched as their voters and prospective voters did the same thing (I remember the great British public "lovin' it" as HPI kicked in and credit card deals kept dropping on the door mat). No doubt some of this debt did create real growth in the economy, but I suspect a fair amount of the debt just helped boost the Chinese economy and inflated house prices to a point where some banks were getting very "creative" with their lending.

So, no, I don't believe that borrowing money on a personal or national level is a bad thing. What I do believe, and did warn against, was a debt binge will usually lead to a bad hangover. Any fool can borrow shed loads of money and say "look at how well I'm doing", the problem comes when the supply of money dries up, or the lender wants their money back. And when I say "fool", it could be an individual, or a country. See Ireland as an example. Celtic tiger, or that cat that over did it on the cream ?

DervProf

quantic wrote: »

I think credit cards are an unnecessary evil and should be banned. Would never have one again.

I wouldn't be without my credit card.

Saves me carrying cash or a cheque book.

Helps me review my monthly spending.

Offers me a certain amount of purchase protection (especially with internet shopping).

I get 1% off everything I purchase with it.

The only danger with a credit card is that you forget that your are spending your own money. Here's a bit of advice.......

See something you want/need in a shop window. Look at the price tag and ask yourself if you can afford it, and are willing to pay the price. Forget that you have a credit card, just imagine handing over the £20 notes, or remind yourself how many hours of work you have to do to pay for the item. If you think it's worth it, flash the plastic. If not, keep it in your wallet. :beer:

Simple advice that simple people seem to ignore.

pqrdef

You'll like this one. Sting in the tail though.

http://www.citywire.co.uk/money/cameron-bottled-it-on-credit-card-message/a530034?re=16170&ea=276301&utm_source=BulkEmail_Money_Daily&utm_medium=BulkEmail_Money_Daily&utm_campaign=BulkEmail_Money_Daily

atush

I love my credit cards, all 4-5 of them. And my M&S storecard.

Two give me cahsback, one gives me free flights, one gives me triple Tesco points (soon to be double) one gives me free amazon vouchers, one gives me free m&S stuff.

None carry a balance, no fees or interest. Happy days.

Jimmy_31

wotsthat wrote: »

Turns out that Dave's heavily previewed speech has been rewritten.

Apparently, his advisers, after some reconsideration thought that a millionaire PM telling the nation to pay off their credit card debts might make him look like an out of touch t**t.

Dave aint got a clue what life is really like for most people in this country.

Pay off your credit card debts:rotfl: I know people who had zero debts and are now using a credit card to cover the monthly shortfall of money for their bills due to their wage being cut so much.

Better luck next time dave:rotfl::rotfl::rotfl:

DervProf

Jimmy_31 wrote: »

Dave aint got a clue what life is really like for most people in this country.

Pay off your credit card debts:rotfl: I know people who had zero debts and are now using a credit card to cover the monthly shortfall of money for their bills due to their wage being cut so much.

Better luck next time dave:rotfl::rotfl::rotfl:

I kind of agree and disagree with you here.

Cameron's sentiment is right, but his advice is about 6 years too late.

quantic

Dan: wrote: »

You probarly just don't know how to use one.

I do thanks, but would rather not have the temptation of a credit card.