Things to learn from this terrible situation.

masonic

There are good uses for cheap credit at these times, but I wouldn't countenance using them except for bridging purposes. For example, if I were to lose my job, I'd be putting all of my living expenses I can on a 0% credit card. Later this year I have a couple of regular savers maturing that I could use to pay this off, and I also have a ladder of fixed term savings accounts that would cover my costs in the medium term, but I wouldn't want to cash in the regular savers early and pay an interest penalty, while the fixed term savers do not permit access,

PParka

veryintrigued said:

So what lessons have you learnt or have had reinforced?

My risk tolerance is higher than I thought. 

veryintrigued

Enjoying reading these. Thank you.

I know, in this time of low % rates of credit, it may not always be mathematically advantageous, but having little debt is something we're very, very thankful of in this household.

tommyedinburgh

Duckyduck said:

tommyedinburgh said:

Never put your house on the market two days before  lockdown. 

Edit - also pay off all your debts (excluding mortgage) within 48 hours of lockdown. 

Why pay off the debts?  If anything now would be the time to build up debts to keep liquidity and cover essential bills for an extended period.

You’ve made a very reasonable and logical comment.

I think all I can say in reply is we shouldn’t have had 2 x car loans and this summer’s holiday (which won’t be happening now I’d imagine) sitting on finance. We’ve paid it off and will now change our strategy moving forward to build the cash needed for these purchases rather than large deposit/rest on finance. 

The difference between no outgoing payment for finance vs £900 odd a month feels amazing. Totally amazing. It took this crisis to make us wake up. 

tommyedinburgh

veryintrigued said:

Enjoying reading these. Thank you.

I know, in this time of low % rates of credit, it may not always be mathematically advantageous, but having little debt is something we're very, very thankful of in this household.

Exactly the point I’ve just made - it very much took the current situation to open two sets of eyes here. 

We paid off the cars and the holiday then began to really question the need to have two top spec newer cars. We made the decision to sell one of them, due to it being a sought after model it went the first day it was advertised. We plan to get an older runabout type car after the lockdown and keep one new car. Perhaps rotating them every 7 years or so. 

keyboardworrier

The main lesson I've learnt is that I will never be investing in P2P again. I completely underestimated how quickly things can go sour in that sector. thankfully I started withdrawing a long time ago and have avoided the situations numerous platforms are currently in

Reg_Smeeton

The importance of gilts and bonds

Reg_Smeeton

The importance of gilts and bonds

veryintrigued

Reg_Smeeton said:

The importance of gilts and bonds

Absolutely.

Having a decent, guaranteed, rate in these times is a boon.

McNinian

Gilts and bonds? 
BoE/gov signalled to anyone who's not comatose yesterday with the announcement they're not going to bother with the figleaf of the QE circuitous route of Blighty borrowing from itself interest free and to just print it (I.e. enter digits at a computer terminal) to transfer it over to the Treasury. Blighty, Euroland and Fedland are in a race to reduce the purchasing power of their currencies to zilch.