What will happen when interest rates rise?

Graham_Devon

CLAPTON wrote: »

nobody under 30 without a mortgage should be in debt
they should be net savers for that all important first house.

It's this kind of post that shows how willfully clueless you are to the world and everyone around you.

What's so special about the age of 30? What qualifies you to be in debt after 30 but not before?

lippy1923

It seems that too many people are going to uni just for the sake of it, not knowing what they want to do, picking a subject at random that they will never use and taking on unnecessary debt. That's their poor choice.

Under 30 should be the easiest time for people to save as they should have the least amount of outgoings, ideally they should be saving a large % of their salary while living at home with their parents, making a nice deposit for themselves. It's not impossible if people really want to do it!

Graham_Devon

lippy1923 wrote: »

It seems that too many people are going to uni just for the sake of it, not knowing what they want to do, picking a subject at random that they will never use and taking on unnecessary debt. That's their poor choice.

Under 30 should be the easiest time for people to save as they should have the least amount of outgoings, ideally they should be saving a large % of their salary while living at home with their parents, making a nice deposit for themselves. It's not impossible if people really want to do it!

51% of babys born in 2013 were to people under 30.

The average age of a first time mother in the UK is 28.

This is a biologicial issue. Biology does not wait for economics.

Your "ideals" are just that. Yours.

Reality though is somewhat different. At this point you have to figure out who's wrong here. The bilogical clock or your theory on what others should or shouldn't be doing.

CLAPTON

midnight_child wrote: »

Anything you earn over 17.5K (or I think its about 21K for the new loans) you have 9% taken towards repayment. Having >£100 deduction per month does grate somewhat when my older colleagues earning more keep this as disposable income.

just for the record

to have to repay £100 per month to the slc would require an income of £34,333 per annum

yes I agree it is annoying to sit next to some-one earning 34,333 who gets to keep more of their salary

however if one was a non graduate, one might might find it a bit annoying, to reflect one was paying for people to have a very pleasant 3-4 years at Uni whilst one had been paying tax for those 3-4 without any specific reward.

lippy1923

Graham_Devon wrote: »

51% of babys born in 2013 were to people under 30.

The average age of a first time mother in the UK is 28.

This is a biologicial issue. Biology does not wait for economics.

Your "ideals" are just that. Yours.

Reality though is somewhat different. At this point you have to figure out who's wrong here. The bilogical clock or your theory on what others should or shouldn't be doing.

That's another choice though, having kids. Same as going to uni with no real reason to go. Same as moving out of the family home with no real reason, simply just to fly the nest. Same as deciding to travel for a few years instead of saving for a deposit.

If people want to do these things instead of saving for a deposit first then it's going to be a much harder task to own a house when they finally decide to do it.

That's an interesting figure to see though. Although I do contribute to that figure as my son was born then and I was 24 then :rotfl:

antrobus

Graham_Devon wrote: »

51% of babys born in 2013 were to people under 30. ....

You've got it the wrong way around again.:):)

In 2013, over half (51%) of all live births were to mothers aged 30 and over.
http://www.ons.gov.uk/ons/rel/vs!!!/characteristics-of-Mother-1--england-and-wales/2013/stb-characteristics-of-mother-1--2013.html

Graham_Devon wrote: »

...The average age of a first time mother in the UK is 28.

This is a biologicial issue. Biology does not wait for economics.

Your "ideals" are just that. Yours.

Reality though is somewhat different. At this point you have to figure out who's wrong here. The bilogical clock or your theory on what others should or shouldn't be doing.

The average age of a first time mother in the UK was indeed 28.3 years. But that would be the highest it has ever been since records began in 1938.

CLAPTON

Graham_Devon wrote: »

It's this kind of post that shows how willfully clueless you are to the world and everyone around you.

What's so special about the age of 30? What qualifies you to be in debt after 30 but not before?

in a discussion about debt by age group, one needs to make an arbitrary lines to compute the numbers.

30 was an arbitrary number for illustration purposes.

The principle however is quite simple.

If one has no mortgage then in general and acknowledging that there are always special exceptions and one is in work and not disabled or isn't paying for sick relatives or in need of expensive not-on-the NHS drugs etc, then one should be SAVING money and NOT in debt (SLC excepted of course).

I agree I am out of touch with many here who think that the first pay cheque is the cue to rush out to get a car loan for a brand new 25,000 motor and replace it every 2 years by increasing the debt; but on that we have to agree to differ.

TheBlueHorse

my first mortgage had a rate of 5.4 %. The BOE rate was 5.2%.


I think that most increases will be absorbed by lenders.


The only people a rate rise will affect is the small few on trackers or SVR. If they don't fix now, that is their problem isn't it.


The rates may not even rise. That is the thing about fixing. It's a gamble.

Mistermeaner

midnight_child wrote: »

Anything you earn over 17.5K (or I think its about 21K for the new loans) you have 9% taken towards repayment. Having >£100 deduction per month does grate somewhat when my older colleagues earning more keep this as disposable income.

Life ain't fair.

I left uni with 13500 of debt, I forget exactly but repaid mine at I think 11% of everything over 15k ish. Took me about 8 years I think and at one stage I was paying over 300 a month.

However I recognise I had a bloody great time spending it and there is no way I would be earning what I am today without it.

GunJack

CLAPTON wrote: »

I agree I am out of touch with many here who think that the first pay cheque is the cue to rush out to get a car loan for a brand new 25,000 motor and replace it every 2 years by increasing the debt; but on that we have to agree to differ.

I've got to agree with this - I changed my car last month, my new one was £100

...the youngsters should be more likely to need the loan for the insurance premium rather than the car.....