EXTENDED: You've got another week to add your travel & holiday deals questions for expert MSE Oli as part of the latest Ask An Expert event.
'Are you an financial optimist for 2012?' poll
in MoneySaving polls
49 replies 6.3K views
This discussion has been closed.
Latest MSE News and Guides
Energy Price Cap change
Martin Lewis on what it means for youMSE News
Best £1 you've ever spent?
Share your most impressive bargainsMSE Forum
New MSE Forum avatars available
Try 'em out nowMSE Forum
I bought my first house in 1984 (about 5 years before the interest rates went stratospheric.) It cost £40,000, my salary was just under £12,000, an identical house is on the market today for £250,000.
Amongst my 'baby boomer' acquaintances of the same age (60ish) none of us have inherited much, if anything, from our parents. We were all born in the East End (of London) and we lived in rented or council houses. As far as I am aware, none of us went to University, just started work at 15 - 18. Most of us have kids that we have put through Uni, bought, and finally paid for, our own homes and worked consistently until, in my case, I got made redundant at 59.5 years with little or no chance of further employment and no access to any benefits of any kind. I thank God that we were bought up firstly, to realize that no-one owed us a living, secondly, not to buy anything that we couldn't afford to pay for, and thirdly, to save whatever we could as even regular small amounts mount up eventually. Rant over.
I would rather pay 17% of 40k than 5% of 200k.
17% of £40k being £6.8k
5% of £200k being £10k for those who were wondering!
Clearly Engeroosi is correct, it is preferable to be paying £6.8k.., if ones earnings are the same. But of course earnings were half or even a quarter of todays equivalent, making yester-years repayments more akin to £13-£27k in real terms.
And with this simple post you have demonstrated just how easy it is for people to get it totally wrong with such polls.
There are not (now) 115 people owing more than £1m. There could be people in that category who have £1m in assets and £2m in debt, but I strongly suspect that a goodly number of those 115 have misread the poll, like you seem to have done. And there is your answer.
In fact, it might be the case that all the 24,096 who voted have more than £1m debt. Which goes to show how poorly worded the poll is.