MSE News: Workers turn to payday loans

dealer_wins

If "workers" are now turning to PDLs, who has been using them up until now?

dtsazza

dealer_wins wrote: »

If "workers" are now turning to PDLs, who has been using them up until now?

By simple set intersection - people who had paydays but no job.

zxspeccy

TheSandman wrote: »

The answer is REAL changes in your standard of living. That might be ditching the car, cheaper housing, 2nd jobs... or do people honestly believe a debt spiral is sustainable?

Absolutely agree, it is the people that believe that they are entitled to standard of living that is unsustainable that have caused the problem, and of course the banks that agreed to lend to them in the first place. Buying new cars instead of a decent second hand one, taking out 100%+ mortgages, buying designer clothes from catalogues, paying for expensive holiday on credit cards.... basically the whole "buy now pay later" situation that a lot of people thought an acceptable way of budgeting.

My mum & dad both earnt decent incomes but even they saved hard for a house deposit putting money aside even if it meant that they had to go without a holiday. My dad had a driving licence (obtained whilst on national service) but didn’t get his first car until he was 27, instead he had a moped to get him around. They also accepted "hand me downs" as far as dining tables and furniture were concerned. I remember Monday tea time was Sunday's leftovers (anyone remember bubble 'n' squeak for tea?). My clothes were usually from the market and my school uniforms were second hand bought from the school (there was no shame in this back in the day). Presents were restricted to birthday and Christmas only. We still had a main summer holiday, but that paid for from savings.

My parents taught me a very important lesson when it comes to money and that was “if you don’t have the money then you can’t afford it”, saying that the only thing you should borrow for was a house. I should be mortgage free in a couple of years, and with a decent topped-up pension should be able to retire early. I am very lucky to potentially be debt free at 45, but I can't say the same for some of my old school friends, who are likely to be in debt for the rest of their lives.

Unfortuantely we have had a generation of parents that have spent well beyond their means, which does not bode well for their children who could follow them down the same path.

I have always been a advocate of teaching financial management in schools (as part of maths lessons). Going forward a huge number of young people are completly unprepared when it comes to financial bugeting and fiscal responsibility. Also it is a parents responsibility to ensure that their children are ready for the "big bad world", so some of this responsibility should sit with them as well.