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rog2

Mrs_pbradley936 wrote: »

Well folks - I did have a serious question but nobody answered me so I thought "sod it" and tried to delete it, but I couldn't. Hence I just put in the question marks. The original question was "Is it too easy to get yourself in debt?" I was comparing it with the days when the item not the person carried the debt - if you bought furniture and could not keep up the payments they just took it back.

Okay - serious answer. Yes it IS too easy to get into debt. It is ALSO hard to live WITHOUT debt. Credit is pushed at people from a very early age, and the 'must have' advertising culture, that we live in, entices consumers into a false sense of security over credit. What may be an affordable payment plan can so easily turn into a nightmare, through circumstances often outside of the control of the debtor - for example sickness or loss of a job.
It is only then that we encounter the darker side of the 'credit' industry.

It is a serious question but sometimes threads take a while befor they are answered. :beer:

Mrs_pbradley936

I cannot remember when it changed but at one time the item was credit worthy rather than the person and you had to put down a sizable deposit. You would certainly never get credit to buy a holiday or meals out. My point being that in those days you could never be worse off than skint, broke, potless or whatever term you want to use. Now you can be worse off – you can be in debt. There are two schools of thought on this depending on who you talk to. Some wish they had never been allowed to run up debts but others think that they can handle their own finances in an adult way and why should they be penalised because a few get themselves into trouble.

Asher

Mrs_pbradley936 wrote: »

I cannot remember when it changed but at one time the item was credit worthy rather than the person and you had to put down a sizable deposit. You would certainly never get credit to buy a holiday or meals out. My point being that in those days you could never be worse off than skint, broke, potless or whatever term you want to use. Now you can be worse off – you can be in debt. There are two schools of thought on this depending on who you talk to. Some wish they had never been allowed to run up debts but others think that they can handle their own finances in an adult way and why should they be penalised because a few get themselves into trouble.

You are talking about secured debt and unsecured debt. I do not have any stats but I would think it is the unsecured debt (with the highest interest rates) that has caused most of the problems for people.

lynzpower

the government wants 50% of all young people to go to university

I understand thatm currently the cost of fees & loans to live on is circa 40k.

Of course there will be exceptions ( eg the likes of doctors or architects have longer and more expensive courses, there will also be some who dont need to take out loans to live on, or get exemptions, however, as a rough guide)

Is it ever acceptable for a country to want half of its youth in debt to the tune of circa 40k before they are 23?

So yes Mrs B, it is too easy - the governement actively promotes and encourages it . companies can offer debt whenever wherever without intervention. You dont need to be in any way qualified to sell debt products ( unlike mortgage brokers or IFAS) so a saturday girl at top shop can sell you a debt.

So, yes. I do think its too easy to get into debt.

rog2

It all changed when the financial organisations saw an opening into the market of credit (debt). At one stage, as you point out, if you purchased an item on 'tick' the agreement was between you, the customer, and the person from whom you purchased the item 'the seller'. You were usually given a payment book, and made your payments at the shop.
Now nobody operates this form of 'credit' selling. Credit agreements tend to be thinly veiled loans, operated by financial institutions that have no link whatsoever with the seller. The lender undertakes to pay the agreed purchase price to the seller, but the buyer's agreement is now with the finacial organisation, whose sole interest is profit. Once you have entered into an agreement with one of these organisations, they will do their utmost to keep you, by 'enticing' you with offers that are difficult to refuse, yet in reality they are only 'selling' you more credit (debt).
In fact, the original retailer would probably never be aware if the customer was experiencing problems, as these companies will, usually, pay the retailer their money, sometimes with a commission 'kick-back', within days of the agreement being approved.

Asher

lynzpower wrote: »

the government wants 50% of all young people to go to university

I understand thatm currently the cost of fees & loans to live on is circa 40k.

Of course there will be exceptions ( eg the likes of doctors or architects have longer and more expensive courses, there will also be some who dont need to take out loans to live on, or get exemptions, however, as a rough guide)

Is it ever acceptable for a country to want half of its youth in debt to the tune of circa 40k before they are 23?

So yes Mrs B, it is too easy - the governement actively promotes and encourages it . companies can offer debt whenever wherever without intervention. You dont need to be in any way qualified to sell debt products ( unlike mortgage brokers or IFAS) so a saturday girl at top shop can sell you a debt.

So, yes. I do think its too easy to get into debt.

University should be funded by taxation as it always used to be. If the country want graduates the country should pay for them.

immoral_angeluk

Mrs_pbradley936 wrote: »

Well folks - I did have a serious question but nobody answered me so I thought "sod it" and tried to delete it, but I couldn't. Hence I just put in the question marks. The original question was "Is it too easy to get yourself in debt?" I was comparing it with the days when the item not the person carried the debt - if you bought furniture and could not keep up the payments they just took it back.

Yes definately. I remember when we first got a landline phone and they wanted a credit card on their system before they'd sign us up! It stinks and I think it's just become the 'norm' to be in debt now.

HairyHandofDartmoor

Well, I'm sorry Mrs Pbradley, but I think your original question was far more interesting! It left so much more to the imagination, and got a much more enthusiatic response!:D

Broken_hearted

Once you get the credit/debt the companies up the amount you can borrow. Christmas is the worst, last year I'd paid my account off ready to close it when Littlewoods send a letter 'Great news your credit limit has been increase' by an at one time tempting £1,000.
Fine but we were already on a DMP and overstreached.

amosworks

Mrs_pbradley936 wrote: »

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No more drugs for you tonight :-|

Amos