MSE News: 'Bankruptcy light' hits young people

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  • Standingtall
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    missrlr wrote: »
    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?

    I used to blame parenting but my two children are like chalk and cheese; granted there is an age gap of 8 years but if I compare what they are like at the same ages they are obviously very different. Having said that, and backing up the nature argument further rather than nurture, they also have different Dads. I still feel partially responsible for my Son's bad money management, but not totally. Yes, I am in a DMP but this was not all my doing (although clearly I have some responsibility).

    I think all these problems just emphasis Martin's drive for financial education in schools. Make kids learn maths by calculating compound interest. Make them work out how much they would pay back at minimum payments on credit cards if they borrowed £x.
    LBM August 2011. DFD somewhere post [STRIKE]2025[/STRIKE]2022 :eek:
    Total debts October 2011 circa GBP 17,700 September 2018 GBP 0 DMP with Payplan
    What doesn't kill you makes you stronger:T:D:D:D
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
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    Lizling wrote: »
    Err, or because the average 2 bedroom flat in London costs about a £250,000

    If only there were parts of the UK that weren't London. If only.
    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.
  • heating-eng
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    Come to Leeds you can buy a house for less than 100k.
    X British Gas engineer and X BG sales adviser.
    Please don,t let this put you off.
  • PrincessK_2
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    Although I agree that parenting and education (primarily at home but also within our schools and wider communities) about money management, budgeting and lifestyle have a significant part to play, I do think that young people do face huge pressure from advertising and other sources.

    Couple the demoralising effect of not being able to move out of the parental home (rents too high/mortgages unacheivable, jobs hard to come by etc), ever-increasing bills (e.g. public transport!) with huge pressure to have the latest gadgets, status products etc - is it any wonder that young people crave the escapism that these products represent?

    I agree 100% that we should live within our means responsibly at any time of life, but I do think there is a more subtle (maybe even cultural or societal) reason for young people getting into so much debt at such an early age :(
    [FONT=Verdana, Arial, Helvetica, sans-serif]~* The future belongs to those who believe in the beauty of their dreams - [/FONT][FONT=Verdana, Arial, Helvetica, sans-serif]Eleanor Roosevelt *~[/FONT]
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  • Aless
    Aless Posts: 127 Forumite
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    ..................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.

    You seem to be ignoring the fact that house price increases have by far outstripped increases in earnings (save ftse100 bosses who are not first time buyers). Easier to bash the young people than consider that things have changed a bit for the worse for young people trying to establish themselves over the past 30 years
  • Gemmzie
    Gemmzie Posts: 14,876 Forumite
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    Young people also often earn the lowest salaries, and miss out on top-up benefits such as housing benefit (lower rates under 25) and Working Tax Credit (not available unless you have children). Minimum wage just doesn't cover living costs realistically and although some borrowing is reckless spending - others borrow merely to get by day to day and that's very dangerous.
    No longer using this account for new posts from 2013
  • gadgetmind
    gadgetmind Posts: 11,130 Forumite
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    Aless wrote: »
    things have changed a bit for the worse for young people trying to establish themselves over the past 30 years

    True enough, but it's not as chalk and cheese as some make out.

    I was chatting to a young couple today who are considering buying their first house, and all that's preventing them pushing the button is that prices are continuing to drift downwards. So, they're going to keep on building their deposit, sniffing around and making the odd cheeky offer, but they have time on their side.
    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.
  • camuk81
    camuk81 Posts: 1,559 Forumite
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    Come to Leeds you can buy a house for less than 100k.

    I'd expand that to most of Yorkshire and humberside seeing as the in the latest survey we don't have any roads which are million pound roads.

    Surely haven't they heard of shad well in Leeds or Dore in Sheffield
  • missrlr
    missrlr Posts: 2,192 Forumite
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    Which is well and good if you can move to these places and work,
    Increasingly unlikely given these parts of the UK are experiencing even higher rises in unemployment than London

    If you have a choice then aint life grand
    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!;)
  • camuk81
    camuk81 Posts: 1,559 Forumite
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    Trust me Missrlr, I haven't an option and I wouldn't move, even though I did get better option elsewhere in the country. I passed two jobs for being out of area! Nothing I can do!
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