Inflation

grizzly1911

epz wrote: »

you owe £100k on a mortgage earn 25k , inflation and wages go up but the debt stays fixed (minus the interest which needs to be replayed)

After 10 years at 10% inflation the wages are now 59k and even with no capital repayment the amount owed is now 1.69 times salary.

If instead we stick to 2.5% inflation then wages end up as £31k and with no capital repayment the amount owed is 3.2 times salary.

There are bad effects as well however such as imports getting more expensive and eventually money becomes worthless like Zimbabwe but it puts the massive inflation of the 70s into context.

But if interest rates went to 15% which they have done in the past?

What if wages don't follow the inflation but goods and services still go up.?

John_Pierpoint

I remember my mortgage with an infinity plus repayment date all through the 1970s. No point in paying off a loan when the interest was 8% and the inflation in the teens %.

Fortunately I did not have a job that was under threat - how many can say that these days?

GeorgeHowell

Graham_Devon wrote: »

Why do you do this?

To say young mums are desperate for their parents to die so they can get hold of the inheritance is just sick.

So you agree then that the morons who post all that sort of stuff on here are just sad nutters that are totally unrepresentative of younger people as a whole ?

By the way WantItAllNowMums!! is the plural of WantItAllNowMum!!, a sardonic observation on some of the trolls, and not a pop at young mums.