Pay deals 'lag behind inflation'

nearlynew

wotsthat wrote: »

Inflation makes the debt smaller. Wage inflation makes it more affordable.

So much for the debt-junkies wet dream of wage inflation making their debts more affordable.

:rotfl:

DervProf

RenovationMan wrote: »

To try and find a silver lining.. At least this means that internal inflation remains low and so the BoE has no incentive to raise interest rates.

Another few months of 0.5% and therefore a few more months of mortgage overpayments for people who are on low trackers.

If the base rate was, say 7%, and there were loads of people struggling to pay their mortgages, what would you think of savers who come here and state "at least people with savings are doing OK" ?

I think that low interest rates and relatively high inflation are a big disincentive for people to save, and must be a real problem for those that decided to save for their retirement (or even those who didn't save for their retirement, but have to feed themselves). At least the state pension is going to get a nice little increase next April, when hopefully inflation starts to ease.

Jimmy_31

RenovationMan wrote: »

To try and find a silver lining.. At least this means that internal inflation remains low and so the BoE has no incentive to raise interest rates.

Another few months of 0.5% and therefore a few more months of mortgage overpayments for people who are on low trackers.

Yeah every cloud an all that eh.

RenovationMan

DervProf wrote: »

If the base rate was, say 7%, and there were loads of people struggling to pay their mortgages, what would you think of savers who come here and state "at least people with savings are doing OK" ?

I think that low interest rates and relatively high inflation are a big disincentive for people to save, and must be a real problem for those that decided to save for their retirement (or even those who didn't save for their retirement, but have to feed themselves). At least the state pension is going to get a nice little increase next April, when hopefully inflation starts to ease.

Enough people are coming here and are happy that people are struggling with their mortgages. Odd that you don't get on their backs, DervProf.

For my part I feel that people makes their choices and takes their chances. I decided that I would cashing in my mortgage free house and large amount of savings with the plan to better myself. I won't apologise that it was the right decision.

I'm saving for my retirement. I use bonds and equities. I don't put money in a bank account and expect above inflation returns for zero risk.

Its amazing how you push the whole self reliant thing and yet pretend you care about pensioners that havent put money away while the sun shone.

Graham_Devon

RenovationMan wrote: »

Enough people are coming here and are happy that people are struggling with their mortgages.

Err who?

Name one.

OptionARMAGEDDON

nearlynew wrote: »

So much for the debt-junkies wet dream of wage inflation making their debts smaller.

:rotfl:

Much worse for poor people who cant afford land dont you know!

Doing quite well out of the low interest rates at the mo, in fact my tennant we have is covering the interest on our mortgage!

Unless you know something about base rate that Merv doesnt know?

wotsthat

BBC TV news are reporting that the average pay rise in the private sector was 2.6%. It's not. The median was 2.6%.

Do the BBC not understand, think their viewers wouldn't understand, or more likely I have too much time on my hands today?

CAN1976

wotsthat wrote: »

BBC TV news are reporting that the average pay rise in the private sector was 2.6%. It's not. The median was 2.6%.

Do the BBC not understand, think their viewers wouldn't understand, or more likely I have too much time on my hands today?

Median is still average. Unless average automatically means Mean these days.

wotsthat

CAN1976 wrote: »

Median is still average. Unless average automatically means Mean these days.

Good point.

I can't be in a minority though in thinking that when someone talks about average on the TV they are talking about a mean. What do you think most people exposed to the BBC news today thought they meant by average?

Thrugelmir

DervProf wrote: »

If the base rate was, say 7%, and there were loads of people struggling to pay their mortgages, what would you think of savers who come here and state "at least people with savings are doing OK" ?

I think that low interest rates and relatively high inflation are a big disincentive for people to save, and must be a real problem for those that decided to save for their retirement (or even those who didn't save for their retirement, but have to feed themselves). At least the state pension is going to get a nice little increase next April, when hopefully inflation starts to ease.

Apparently not. Nothing like a reccessionary period to focus peoples minds.

The BBA said in the first eight months of 2011 deposits and savings increased by £13.5bn compared with £21.2m in the same period of 2010.

The BBA's statistics director, David Dooks, said: "Households are limiting their borrowing in the face of unemployment concerns and pressure on household finances amid general economic uncertainty.