What Makes Someone Cheer On And Support House Price Inflation?

ess0two

RenovationMan wrote: »

I was just wondering how someone gets addicted to debt? Do you mean people who keep borrowing until they end up owing thousands on credit cards, store cards, loans and suchlike until they reach the point that they can no longer service the debt and have to get a DMP/IVA or go bankrupt?

I would'nt bother waiting for an answer,its the same old [EMAIL="!!!!"]!!!![/EMAIL] he spouts.

RenovationMan

ess0two wrote: »

I would'nt bother waiting for an answer,its the same old !!!! he spouts.

Perhaps, but let's give him a chance. He might surprise us.

nearlynew

RenovationMan wrote: »

I was just wondering how someone gets addicted to debt? Do you mean people who keep borrowing until they end up owing thousands on credit cards, store cards, loans and suchlike until they reach the point that they can no longer service the debt and have to get a DMP/IVA or go bankrupt?

Those are the people that get the headlines - and yes - they are debt-junkies. They are addicted in the same sense as any other junkie.
In other words, they exhibit the key features of addiction - tolerance, dependancy and withdrawal symptoms; which in turn can have serious consequences for your day-to-day ability to function.

But, away from the headlines and scare stories, tens of millions of people in this country are now living in such a fashion.

They are not addicted to drugs, but to debt.
And, just like any drug addict, they want more of their fix to make things better.

Anybody who thinks rising house prices will make things better is a debt junkie.
Anybody who thinks banks just need to "start lending again" to make things better is a debt junkie.

RenovationMan

nearlynew wrote: »

Those are the people that get the headlines - and yes - they are debt-junkies. They are addicted in the same sense as any other junkie.
In other words, they exhibit the key features of addiction - tolerance and dependancy; which in turn can have serious consequences for your day-to-day ability to function.

But, away from the headlines and scare stories, tens of millions of people in this country are now living in such a fashion.

They are not addicted to drugs, but to debt.
And, just like any drug addict, they want more of their fix to make things better.

Anybody who thinks rising house prices will make things better is a debt junkie.
Anybody who thinks banks just need to "start lending again" to make things better is a debt junkie.

I agree that people tolerate debt (and each person has their own tolerance levels) but are people really dependant on debt?

homelessskilledworker

RenovationMan wrote: »

I was just wondering how someone gets addicted to debt? Do you mean people who keep borrowing until they end up owing thousands on credit cards, store cards, loans and suchlike until they reach the point that they can no longer service the debt and have to get a DMP/IVA or go bankrupt?

If you are trying to suggest that after a reckless borrowing binge you only have to take the easy route and go bankrupt, problem solved, then you are just another one of these people that quite frankly make me sick.

As someone who is being effected by bankrupts to a smaller degree and who has witnessed friends who were stuffed because of people like that I don't share your blase attitude.

To me and thankfully still many others(even though it is far worse these days) I see the paying of a debt as a matter of honour and decency.
The sooner the stigma that once surrounded bad and reckless debters returns along with those that walk away from their debts far to easily and go bankrupt, the better.

Although I am certain that there are cases where business men or even those with personal debts got into problems through no fault of their own, their are many of them that are criminal in my eyes.

nearlynew

RenovationMan wrote: »

I agree that people tolerate debt (and each person has their own tolerance levels) but are people really dependant on debt?

Now you're just taking the p1ss, surely?

RenovationMan

nearlynew wrote: »

Now you're just taking the p1ss, surely?

Nope, I'm wondering how people can get dependant on debt rather than reliant on debt. I can see how people rely on debt in order to make ends meet, for instance those payday loans to bridge the gap between one pay cheque and another but I can't see how people would get dependant in the addictive sort of way you suggest. Debt is a means to an end, debt is not the end itself.

ILW

RenovationMan wrote: »

Nope, I'm wondering how people can get dependant on debt rather than reliant on debt. I can see how people rely on debt in order to make ends meet, for instance those payday loans to bridge the gap between one pay cheque and another but I can't see how people would get dependant in the addictive sort of way you suggest. Debt is a means to an end, debt is not the end itself.

People are addicted to the "high" they get from consumption. Debt is the "drug" that supplies the high in many cases.

nearlynew

RenovationMan wrote: »

Nope, I'm wondering how people can get dependant on debt rather than reliant on debt. I can see how people rely on debt in order to make ends meet, for instance those payday loans to bridge the gap between one pay cheque and another but I can't see how people would get dependant in the addictive sort of way you suggest. Debt is a means to an end, debt is not the end itself.

In the context of what you have written here, reliance and dependancy are the same.

For every person borrowing to make ends meet, there is someone borrowing to fund a lifestyle that they could not otherwise afford - and that includes 90% of people taking out IO mortgages.

These are the people with the mindset that more lending by the banks (and by extension, higher house prices) is the answer to our present economic woes.

Quite frankly, it is idiotic in the extreme.

wotsthat

nearlynew wrote: »

Err.... a junkie that is addicted to debt?


Just off the top of my head, like.

How does that work? I seem to remember that Julieq, queen of the debt junkies, is mortgage free.