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  • FIRST POST
    Former MSE Penelope
    Great 'what do you pay more for if you're poor?' Hunt
    • #1
    • 8th Nov 10, 10:47 AM
    Great 'what do you pay more for if you're poor?' Hunt 8th Nov 10 at 10:47 AM
    Great 'what do you pay more for if you're poor?' Hunt


    We're doing some work with Save the Children, and one issue's the 'poverty premium', where being cash-strapped means things cost more. Examples include higher bills on gas and electricity meters, no web access so things are pricier and more expensive borrowing, eg, doorstep credit. We'd like MoneySavers' experiences on what's costlier when you're poor.

    To enter this discussion - just click reply (you'll need to be registered to the forum - it is totally free - we only require registration to stop spammers)


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    Last edited by MSE Jenny; 09-11-2010 at 4:35 PM.
Page 1
  • elbeie
    • #2
    • 11th Nov 10, 6:33 PM
    what do you pay more for when you're poor
    • #2
    • 11th Nov 10, 6:33 PM
    Anything from the supermarket. There is no way that you can afford to bulk buy and take advantage of big-buy-bargains. You end up paying for 3 small packets of food / washing powder (everything really!) rather than one big one which is a smaller cost. You can't take large 'bulk' amounts on the bus.
    You are unlikely to be able to afford insurance and so pay more than insurance premium and excess for home break-ins, pets being unwell etc.
    You pay more for insurance if you live in a poor post-code.
    Last edited by Former MSE Penelope; 12-11-2010 at 4:15 PM.
  • bigwigtom
    • #3
    • 11th Nov 10, 6:58 PM
    • #3
    • 11th Nov 10, 6:58 PM
    Credit is the big one.

    If you have a low income or are in some debt, it seems you get penalised when trying to borrow, with much higher interest rates. Substantial differences in interest rates mean the poor keep getting poorer, and the rich, richer.
  • engineer
    • #4
    • 11th Nov 10, 9:32 PM
    • #4
    • 11th Nov 10, 9:32 PM
    Car tax! It seems a disproportional difference between a 6 & 12 month payment. Especially now that if you buy on line there is no commision taken by the post office. Just HMG bleeding you again.
  • jamsandwhich
    • #5
    • 11th Nov 10, 9:38 PM
    • #5
    • 11th Nov 10, 9:38 PM
    Car and House insurance - as far as my experience is aware these are the only organisations who penalise you and add a charge for paying monthly.

    I find it easier to budget monthly as it can be difficult to put aside money over twelve months for when insurance is due yet any company I have dealt wiht has imposed a credit charge for monthly premiums when everyone else (telephone, gas, electric etc) encourages by giving a discount?

    This practice has in the past led me to overdraw for a couple of months as it is a lot cheaper to pay a minor interest charge and pay insurance in full.

    I also feel that this is a practice which should stop because I think it encourages people to go without insurance if they do not have the lump sum to pay for it.
    Last edited by Former MSE Penelope; 12-11-2010 at 4:16 PM.
    • corbyboy
    • By corbyboy 11th Nov 10, 9:44 PM
    • 1,137 Posts
    • 1,378 Thanks
    corbyboy
    • #6
    • 11th Nov 10, 9:44 PM
    • #6
    • 11th Nov 10, 9:44 PM
    I also feel that this is a practice which should stop because I think it encourages people to go without insurance if they do not have the lump sum to pay for it.
    Originally posted by jamsandwhich
    While I would agree that I hate being charged extra just for paying monthly, adding a few pounds on each month isn't going to make the difference between being able to afford insurance and not being able to afford it.
  • tomitma
    • #7
    • 11th Nov 10, 10:14 PM
    • #7
    • 11th Nov 10, 10:14 PM
    Electricity and Gas, many of the unemployed opt for the meter payments, as they have already gotten debt with these companies, They
    pay a higher rate for the gas and electricity supplied.
    • Fen1
    • By Fen1 11th Nov 10, 10:20 PM
    • 1,445 Posts
    • 5,576 Thanks
    Fen1
    • #8
    • 11th Nov 10, 10:20 PM
    • #8
    • 11th Nov 10, 10:20 PM
    Clothing, especially items like shoes.

    You can buy cheap clothes, but they don't last and quickly look shabby. There can be a huge difference between a cheap pair of shoes and a quality pair and the length of time they last. You can end up paying more in the long-run because you have to keep replacing what you have.
    Last edited by Former MSE Penelope; 12-11-2010 at 4:19 PM.
  • dippycow
    • #9
    • 12th Nov 10, 1:55 AM
    • #9
    • 12th Nov 10, 1:55 AM
    transport costs me a ridiculous amount i dont have a car as i couldnt afford the car let alone the tax and insurance and cost of any repairs etc,so i use public transport everyday, it cost so much i have 3 kids and for me to go into my local town with them costs me £15 for a family return ticket so before i can even buy anything i need in town i am £15 down already, i hate having to spend so much.

    i find most things which are cheaper to buy are of inferior quality and so as someone who doesnt have lots of available money i feel cheated in pretty much every aspect of every day spending.

    there is a huge list of things that cost more for poorer people, i particularly hate those places that absolutely rip you off because you cannot afford to buy out right places live brighthouse who seem to be offering a wonderful deal for people who need to pay weekly and the tv adverts make them look great especially home in on them around the christmas period, these places are disgusting they charge stupidly high amounts for relatively cheap items,but items they no people like us cannot afford, so instead of paying £400 for a sofa they charge a stupid £1,000 for oh they pretty it up by saying you can pay low weekly amounts which you can but for a rdiculously long period of time, how is this allowed and why is it allowed to advertise freely all over the tv it shouldnt be allowed it is an outrage.

    ok sorry rant over ,i just find it very hard to bite my tongue or still my fingers when it comes to these things.
    • minuettoallegretto
    • By minuettoallegretto 12th Nov 10, 7:44 AM
    • 112 Posts
    • 886 Thanks
    minuettoallegretto
    Short-term quick cash loans for an extortionate interest rate - they suck you in, but you struggle to pay it back the following month without borrowing again. All geared up to appeal to those with less...They really should all be made to live on their own credit, to see how they like it!
    • Butti
    • By Butti 12th Nov 10, 11:36 AM
    • 4,708 Posts
    • 12,998 Thanks
    Butti
    Getting your money out. Have moved to a poor part of Newcastle for my year as a student and I have only found one cashpoint within a mile that doesn't charge to get your money out.

    B
    Debt LBM (08/09) £11,641. (08/12) £22,734. (10/18 )£5826
    Diary 'Butti's journey : A matter of loaf or death'.
    Diary 2 'The whimsical tale of the Waterbed of Debt'
    33.2% paid off mortgage
    'one day I will be rich and famous…for now I'll just have to settle for being poor and incredibly sexy'. Vimrod Member of MIKE'S MOB
    • Fen1
    • By Fen1 12th Nov 10, 12:05 PM
    • 1,445 Posts
    • 5,576 Thanks
    Fen1
    Nutritious food. Too often, the only shops in deprived areas are 'corner' shops that only sell long-life goods. Any fresh fruit and vegetables are often poor quality and expensive, if they stock any at all. Ditto meat and fish.

    It is no surprise that you now have at least two generations on 'council' estates living on nothing but junk food. There is a vicious circle: no fresh food - only junk food available - no cooking skills - addiction to junk - no demand for fresh food.
  • Techhead
    Phone costs. Its expensive to run a landline. So many are on pre-pay mobiles.
    Many helplines, government departments, doctors are on 08 numbers with no geographical or 03 alternative.
  • noochie
    I would love to buy my daughter some decent shoes for school, i can only ever afford cheapo plastic ones that last her about 2 months as she walks a long way to school and back every day, it would be great to be able to buy some £50 leather boots that will last the whole winter but i never have that sort of cash spare.
  • elbeie
    While I would agree that I hate being charged extra just for paying monthly, adding a few pounds on each month isn't going to make the difference between being able to afford insurance and not being able to afford it.
    Originally posted by corbyboy
    If you're poor then you have a have an limited income and it does.
  • paganrongs
    Costing more to the poor
    Bank charges cost more since any emergency spend (eg urgent dental appointment too painful for a 2 month nhs wait) can easily knock you into the red.

    Also, laundrette costs a fortune: local machines are £3-5 per wash plus 50 p per 5 mins in a dryer.
  • full-time-mum
    While I would agree that I hate being charged extra just for paying monthly, adding a few pounds on each month isn't going to make the difference between being able to afford insurance and not being able to afford it.
    Originally posted by corbyboy
    There speaks the voice of someone who isn't one a tight budget.

    One or two pounds here every month and one or two pounds there every month soon mounts up. If you don't have that extra one or two pounds then you just don't have it.
  • estherg69
    Everything costs more if you are poor!
    In my experience just about everything ends up costing more if you are poor, for instance internet connection to your home is about £8 per month, but if you can't have DD then you have to pay for internet cafes that cost £1 per hour! And ironically when you have money you get things given for free, as companies think you will be a good customer to have, so they send you lots of samples, they give you special dels, etc.
  • vinvin
    prescription charges! if you have ill health and are poor,bad luck. If you pay for a pre-payment certif because of your ill health but cannot afford a years certif you are heavily penalised. you can get a four month cover which costs way more than a third of a yearly. This is naughty as most pre-payment certif users are using them for many years, yet if you cant afford to lump out 1 years dosh then you are penalised and charged more for being poor, wicked.
    Last edited by vinvin; 13-11-2010 at 6:20 PM. Reason: mis quoting. mixing my one third and times 3.
    • beanielou
    • By beanielou 13th Nov 10, 9:26 PM
    • 58,054 Posts
    • 239,022 Thanks
    beanielou
    Thank you so much for sharing your experiences.
    Lou~ Debt free Wanabe No 55 DF 03/03/14.
    **Credit card debt free 30/06/10~** **Weight loss 2 stone 12 lbs **

    "A large income is the best recipe for happiness I ever heard of" Jane Austen in Mansfield Park.
    ***Fall down seven times,stand up eight*** ~~Japanese proverb.
    It starts with you, it starts from now. *** It is ok to be me.***
    ***Keep plodding***
    Out of debt, out of danger. MFW 2018. No 144
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