MSE News: 'Bankruptcy light' hits young people

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  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
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    oldtractor wrote: »
    no one under the age of 30 should be allowed to get a loan. it seems to have become the norm for people to have credit cards and loans. This is wrong. it should be abnormal for people to borrow.

    I assume you're prepared to make an exception for mortgages?
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • midnight_express
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    gadgetmind wrote: »
    I assume you're prepared to make an exception for mortgages?

    Not many people under 30 can get a mortgage these days. Th average age of a first time buyer is now 37.
  • bradibaby
    bradibaby Posts: 78 Forumite
    edited 31 December 2011 at 5:39PM
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    as a pp has said circumstances do change ..but i do think youngsters should be taught the dangers of credit and credit cards from secondary school age

    ...my own neice is in debt by nearly £5000 ( mostly catalogue debt out her mothers catalogue )and nothing really to show for it she has just turned 19 and NOT working ... god knows how she was even allowed a credit card

    her mother now is paying for her daughters choice of lifestyle ..latest tv, leather suite , new phone & new pram every other month for her son ............shocking

    Neices adttitude. is .. so what ... i want i get
  • John_Pierpoint
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    Not many people under 30 can get a mortgage these days. Th average age of a first time buyer is now 37.
    ..................because they have p*ss*d away all spare cash for at least a dozen years and so had NO capital of their own to put towards any property.

    Wake up people, we live in a capitalist world and every successful capitalist will tell you that the first £10k is by far the hardest capital to raise in a lifetime.
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
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    Not many people under 30 can get a mortgage these days. Th average age of a first time buyer is now 37.

    Averages can hide many things, and I know a whole load of people under 30 who have bought property over the last few years.

    A blanket ban on lending to young people would be a bad thing as we all sometimes need money for major purchases such as a house or a car. Where the problem lies is with lenders who don't ask enough questions and borrowers who don't take control of their own cash flow.
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • bouncydog1
    bouncydog1 Posts: 2,696 Forumite
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    Let's not forget that in some cases youngsters will go out and get loans etc because that is the way their parents live. They have come from a background of "get it now pay it later" so that is what they think is the right way to go about things.

    DD was offered an int free overdraft as part of her student account package. She advised she didn't want it and the bank rep was telling her how useful it would be - advisor soon shut up when she responded it would surely be more useful to her, to budget and live within her means! However from that experience I can see how youngsters will take out loans etc.

    We have tried very hard to instill in her that everything has to be paid for so hopefully the only debt she will have will be a mortgage in due time.
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
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    bouncyd!!! wrote: »
    We have tried very hard to instill in her that everything has to be paid for so hopefully the only debt she will have will be a mortgage in due time.

    Ditto with our daughter. I guess only time will tell, but currently she carefully saves her money and then finally buys something that she really wants. She'll even go shopping with her friends and come back with nothing. When we ask what the others bought, the answer is usually along the lines of "Random 5h1t!"
    I am not a financial adviser and neither do I play one on television. I might occasionally give bad advice but at least it's free.

    Like all religions, the Faith of the Invisible Pink Unicorns is based upon both logic and faith. We have faith that they are pink; we logically know that they are invisible because we can't see them.
  • missrlr
    missrlr Posts: 2,192 Forumite
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    My sister was dreadful with money, and still has wacky ways of working out costs. She has constantly been in debt since she took an allowance advance of 7 months from Dad to get something she wanted (read "I need Daddy") at the tender age of 9. I thought she had cracked it when we came to (near) blows about her wanting me to take out a loan for her to clear her debts (which I refused) and we had a huge talk about it; she came on here, and really seemed to be getting to grips with financial reality.
    I have in the past taken out a loan to buy a car when I had completed Uni, (sans student loans) as the company I landed a job with was not in a place where PT worked from where I lived and the car I had completely died and nothing would persuade any mechanic to pass it through an MOT. Since then the only time I have taken a loan was to pay for another car, but as I was offered the 0% deal and had the money I was happy to get the interest and use the money to pay the debt instead of paying the amount up front.
    I cannot get my head around why I have the anti-debt bug but my sister is a credit junkie? I am busting a gut to clear the mortgage and she is mortgaged and rented to the hilt (they did a part buy part let) with loans and credit cards to boot. Given we went to the same school (until GCSE) education or nurture?
    Start info Dec11 :eek:
    H@lifax [STRIKE]£13813.45[/STRIKE] paid Sep14 paid 23 months early :T
    Mortgage [STRIKE]£206400[/STRIKE] :eek: £199750 Mortgage £112500
    B@rclays £[STRIKE]25000[/STRIKE] paid 4 years 5 months early. S@ntander £[STRIKE]9300[/STRIKE] paid 2 years 2 months early
    2013 8lb lost 2014 need to lose 14lb. Lost 4 so far!;)
  • Lizling
    Lizling Posts: 882 Forumite
    edited 1 January 2012 at 9:19PM
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    Not many people under 30 can get a mortgage these days. The average age of a first time buyer is now 37.
    ..................because they have p*ss*d away all spare cash for at least a dozen years and so had NO capital of their own to put towards any property.

    Wake up people, we live in a capitalist world and every successful capitalist will tell you that the first £10k is by far the hardest capital to raise in a lifetime.

    Err, or because the average 2 bedroom flat in London costs about a £250,000 (and I'm talking Peckham or Hounslow here, not Kensington) so you need about £50k for the deposit even if you can afford the mortgage. It takes a long time to save up that much, especially if you're still paying off a student loan and having to pay half your income in rent.

    But of course, it's much easier to assume people are irresponsible just because of their age than accept that there are some real problems.
    Saving for deposit: Finished! :j
    House buying: Finished!
    Next task: Lots and lots of DIY
  • John_Pierpoint
    John_Pierpoint Posts: 8,391 Forumite
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    edited 2 January 2012 at 10:03AM
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    Not quite central London, I will agree, but within commuting distance.

    http://www.rightmove.co.uk/property-for-sale/East-Tilbury.html?sortByPriceDescending=false&sortByRelevance=false

    Some times we have to cut our coat to meet the cloth available.

    http://www.rightmove.co.uk/property-for-sale/property-30904981.html?premiumA=true

    I am also a great supporter of self build BUT the government rules and regulations and revenue generating exercises make that increasingly difficult.

    The smart money is on emigration, ask the Irish.
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