Are you paying more because you can’t pay upfront?

sourcrates

John-K wrote: »

Not only not enough profit, it probably cost them money, too. Once upon a time the sense of shame from not paying your debts would mean that people move heaven and Earth to make sure that they did. As we see from advice on here nowadays, the world is a very different place, and people have no problem just defaulting and walking away.

As in so many things, those acting in bad faith have harmed everyone else.

It will get worse, as we see people frozen out of mainstream finance more and more.

To anyone thinking of defaulting, or advising people to default, please bear in mind the harm that you do.

That is a pretty sweeping across the board statement, everyone has different circumstances, you cannot enclose everyone within the same bracket, life is not like that.

If it meant the difference between eating or paying your credit bills, it’s a no brainer, not everyone spends on sky or PlayStations, sometimes you are a victim of circumstance, ask a debt advisor about there clients, they are from all walks of life, you simplify things way too much.

Sometimes defaulting is your only option.

January2015

John-K wrote: »

To anyone thinking of defaulting, or advising people to default, please bear in mind the harm that you do.

Best thing I ever did :j

No more credit for me..... ever.

LincsPaul

John-K wrote: »

Not only not enough profit, it probably cost them money, too. Once upon a time the sense of shame from not paying your debts would mean that people move heaven and Earth to make sure that they did. As we see from advice on here nowadays, the world is a very different place, and people have no problem just defaulting and walking away.

Likewise, obtaining credit is no longer a friendly talk with your bank manager but a bombardment of wonderful-sounding but terrible deals from every Tom, !!!! and Harry company which has no interest in working with you to improve your life. And the throwaway, must-have-the-latest-thing, peer-pressured consumer society we currently live in didn't used to exist either. All of which is designed psychologically to appeal to your innermost desires and extract as much money out of you as possible.

Pretty sure house prices, rent, university etc were cheaper in the olden golden days too.

Being facetious, I'm not excusing people getting into debt but, if the companies that offer bad loans have no shame, if the manufacturers of phones that are designed to go wrong or become obsolete after 2 years have no shame, why should we?

iolanthe07

Pretty sure house prices, rent, university etc were cheaper in the olden golden days too.

My first house in 1976 cost £11,000 on an annual salary of just around £3,000, so about the same ratio as today. There just wasn't as much 'stuff' to buy in those days, and no social media to make you feel inadequate if you didn't have as high a standard of living as your peers. University tuition was free and there were mean tested grants for subsistence, but of course only around 5% of people went to university, so it was affordable for the state.

January2015

iolanthe07 wrote: »

Pretty sure house prices, rent, university etc were cheaper in the olden golden days too.

My first house in 1976 cost £11,000 on an annual salary of just around £3,000, so about the same ratio as today.

Where do you live ????

Annual salary here averages £30k to £45k. First homes (one bed or studio) average in excess of £250k. Almost impossible for first time buyers to get on the housing ladder without serious help from parents and, if they are lucky, one of these help to buy schemes.

[Deleted User]

For years while we were bringing up a family we bought second hand washing machines usually around £80 and they often lasted 3 years, we also bought ex rental TV's back in the day, our current w/machine is our first ever new one same goes for the TV, we had been married 20 years before we went on a foreign holiday.

John-K_3

LincsPaul wrote: »

L
Being facetious, I'm not excusing people getting into debt but, if the companies that offer bad loans have no shame, if the manufacturers of phones that are designed to go wrong or become obsolete after 2 years have no shame, why should we?

I’m unlikely to talk you round to my way of thinking, people who will not honour their obligations and I will never see eye to eye. All I will say is that if you welch on a debt you can never complain if someone has you over in any form.

LincsPaul

John-K wrote: »

I!!!8217;m unlikely to talk you round to my way of thinking, people who will not honour their obligations and I will never see eye to eye. All I will say is that if you welch on a debt you can never complain if someone has you over in any form.

So a relationship breakdown / long-term hardworking employee being made redundant / supplier not honouring their obligations / changes in the market or economy rendering your business suddenly unprofitable / entrepreneurs trying a new idea in good faith unsuccessfully* etc etc... are all people who should hang their heads in shame until the day they die?

You forget our plucky British inventor shopkeeper entrepreneur blah blah spirit (which Brexit is apparently going to kick into action) relies on risk-taking.

Or are you talking about just the people who spend too much credit on shopping and gambling? Please confirm whether you think all those who get into debt are the same.

*Plenty of now rich business people and indeed presidents had businesses which went under at some point!

sourcrates

John-K wrote: »

I’m unlikely to talk you round to my way of thinking, people who will not honour their obligations and I will never see eye to eye. All I will say is that if you welch on a debt you can never complain if someone has you over in any form.

People are not always able to honour there commitments.

They don’t always welsh on there debts intentionally either.

Think sliding doors, you have obviously been very lucky in life, others are not so fortunate, you are talking from your own, it seems, limited experience, things happen in life to change your perspective and I am quite shocked you cannot see or understand that fact.

Mrs_Ryan

My partner is paying for the car and home insurance in instalments. I was shocked at the markup on it and they carry out a credit check as well to do so! Presumably that forces those with poorer credit ratings to have to find money upfront or turn to high interest credit cards. Fortunately, my partners credit rating is excellent- Ive made sure of that, he has a car on PCP which he has just changed over so I watched his credit file like a hawk for months before it was due.
Hes paying monthly for the washing machine, fridge, oven hob and hood but they all came with the fitted kitchen that is being paid off monthly. Fortunately its 0 percent so not costing more and is half paid off now.
And to the person who said its never acceptable to default on a debt- I defaulted on multiple debts when I got cancer very unexpectedly at 31 and was unable to work. I dont wish my situation on anyone but I assure you that the first thing on my mind when I got diagnosed was not how will I pay my credit card bill!