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  • FIRST POST
    • Former MSE Helen
    • By Former MSE Helen 18th Oct 12, 10:54 AM
    • 2,324Posts
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    Former MSE Helen
    MSE News: Rising rents push more into debt
    • #1
    • 18th Oct 12, 10:54 AM
    MSE News: Rising rents push more into debt 18th Oct 12 at 10:54 AM
    "A record 12,000 tenants who are struggling with rent arrears have contacted a debt advice charity this year ..."

    Read the full story:

    Rising rents push more into debt


Page 1
    • Credit-Crunched
    • By Credit-Crunched 18th Oct 12, 11:33 AM
    • 2,115 Posts
    • 4,140 Thanks
    Credit-Crunched
    • #2
    • 18th Oct 12, 11:33 AM
    • #2
    • 18th Oct 12, 11:33 AM
    I do agree that rents are rising and placing a squeeze on people.

    I do also feel that this needs to be put into some perspective, the recession of the 80's had people scarbbling around for money to pay for food, and heating.

    I would be amazed that the thousands of people in this research were in that particular catergory.

    I would bet my bottom dollar, that they all have mobiles, sky, internet, have take aways, treats to the cinema etc.

    I am not saying that people are not struggling, however if people want to save for a deposit, these luxuries have to go.

    When I was saving for my house, I cycled to work and lived on Aldi food, no luxuries for a year. Now i enjoy my life having taken a small degree of pain for the longer gain
    • Lizling
    • By Lizling 18th Oct 12, 12:36 PM
    • 863 Posts
    • 1,675 Thanks
    Lizling
    • #3
    • 18th Oct 12, 12:36 PM
    • #3
    • 18th Oct 12, 12:36 PM
    I rent and haven't been to the cinema in years. No Sky and no takeaways in a very long time either. I haven't got a car, my food comes from Lidl and of course there are many thousands who are far, far worse off than me.

    Can I have your bottom dollar please?
    Saving for deposit: Finished!
    House buying: Finished!
    Next task: Lots and lots of DIY
    • Credit-Crunched
    • By Credit-Crunched 18th Oct 12, 12:40 PM
    • 2,115 Posts
    • 4,140 Thanks
    Credit-Crunched
    • #4
    • 18th Oct 12, 12:40 PM
    • #4
    • 18th Oct 12, 12:40 PM
    I rent and haven't been to the cinema in years. No Sky and no takeaways in a very long time either. I haven't got a car, my food comes from Lidl and of course there are many thousands who are far, far worse off than me.

    Can I have your bottom dollar please?
    Originally posted by Lizling
    Contary to your post last night asking about Virgin, Sky or BT Infinity is the better deal?

    It appeasr I will keep my bottom dollar!
    • Lizling
    • By Lizling 18th Oct 12, 12:40 PM
    • 863 Posts
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    Lizling
    • #5
    • 18th Oct 12, 12:40 PM
    • #5
    • 18th Oct 12, 12:40 PM
    Yup, that's for when I move house, because by then I won't be paying rent!


    (And my post was asking about any discounts available on them, to see if I could make t affordable.)
    Saving for deposit: Finished!
    House buying: Finished!
    Next task: Lots and lots of DIY
  • Eellogofusciouhipoppokunu
    • #6
    • 18th Oct 12, 1:22 PM
    • #6
    • 18th Oct 12, 1:22 PM
    1 - 0 to Lizling!
    • Heliflyguy
    • By Heliflyguy 18th Oct 12, 1:59 PM
    • 913 Posts
    • 451 Thanks
    Heliflyguy
    • #7
    • 18th Oct 12, 1:59 PM
    • #7
    • 18th Oct 12, 1:59 PM
    I do agree that rents are rising and placing a squeeze on people.

    I do also feel that this needs to be put into some perspective, the recession of the 80's had people scarbbling around for money to pay for food, and heating.

    I would be amazed that the thousands of people in this research were in that particular catergory.

    I would bet my bottom dollar, that they all have mobiles, sky, internet, have take aways, treats to the cinema etc.

    I am not saying that people are not struggling, however if people want to save for a deposit, these luxuries have to go.

    When I was saving for my house, I cycled to work and lived on Aldi food, no luxuries for a year. Now i enjoy my life having taken a small degree of pain for the longer gain
    Originally posted by Credit-Crunched
    Ahh the great British dream of owning a house, I did not realise that renting in the UK meant a life cut off from the outside world on par to living in a Benedictine monastary.

    Dont understand your line about the 80s either, did nobody rent in the 80s?
    • ShAnE
    • By ShAnE 18th Oct 12, 2:51 PM
    • 264 Posts
    • 390 Thanks
    ShAnE
    • #8
    • 18th Oct 12, 2:51 PM
    • #8
    • 18th Oct 12, 2:51 PM

    I would bet my bottom dollar, that they all have mobiles, sky, internet, have take aways, treats to the cinema etc.
    Originally posted by Credit-Crunched

    Are you talking about people who struggle to pay rent, or people who struggle to pay their mortgage?

    I assume if you struggle to pay rent, you're not likely to be saving for a deposit.

    I'm saving for a deposit, but I still enjoy life's luxuries, because it is my choice to save slightly less for slightly longer. Although my job would be made much easier if people who couldn't afford houses weren't allowed to keep them.

    Current Debt: 0%.

    Current House Deposit: 7%.
    • Fire Fox
    • By Fire Fox 18th Oct 12, 3:14 PM
    • 25,239 Posts
    • 29,497 Thanks
    Fire Fox
    • #9
    • 18th Oct 12, 3:14 PM
    • #9
    • 18th Oct 12, 3:14 PM
    I rent and haven't been to the cinema in years. No Sky and no takeaways in a very long time either. I haven't got a car, my food comes from Lidl and of course there are many thousands who are far, far worse off than me.

    Can I have your bottom dollar please?
    Originally posted by Lizling
    And are you contacting a debt charity about your arrears? If you are why are you thinking about media packages for your next home?

    Credit-crunched referred to the "I would be amazed that the thousands of people in this research were in that particular catergory.

    I would bet my bottom dollar, that they all have mobiles, sky, internet, have take aways, treats to the cinema etc
    ."
    Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️
    • Fire Fox
    • By Fire Fox 18th Oct 12, 3:14 PM
    • 25,239 Posts
    • 29,497 Thanks
    Fire Fox
    Are you talking about people who struggle to pay rent, or people who struggle to pay their mortgage?

    I assume if you struggle to pay rent, you're not likely to be saving for a deposit.

    I'm saving for a deposit, but I still enjoy life's luxuries, because it is my choice to save slightly less for slightly longer. Although my job would be made much easier if people who couldn't afford houses weren't allowed to keep them.
    Originally posted by ShAnE
    "I would be amazed that the thousands of people in this research were in that particular catergory. I would bet my bottom dollar, that they all have mobiles, sky, internet, have take aways, treats to the cinema etc."

    The word 'deposit' was in a more general context
    "I am not saying that people are not struggling, however if people want to save for a deposit, these luxuries have to go.

    When I was saving for my house, I cycled to work and lived on Aldi food, no luxuries for a year. Now i enjoy my life having taken a small degree of pain for the longer gain.
    "
    Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️
    • Lizling
    • By Lizling 18th Oct 12, 4:03 PM
    • 863 Posts
    • 1,675 Thanks
    Lizling
    And are you contacting a debt charity about your arrears? If you are why are you thinking about media packages for your next home?
    Originally posted by Fire Fox
    What arrears? What are you on about? I've never been in arrears in my life.

    Credit-crunched referred to the "[I]I would be amazed that the thousands of people in this research were in that particular catergory.
    Originally posted by Fire Fox
    My point is that I know perfectly well that I'm better off than a hell of a lot of renters (I'm squeezed, but not struggling and not in arrears), and this sample of thousands is taken from those who are struggling the most. Therefore, it's reasonable to assume that a great many of them have had to make more cutbacks than I have.
    Last edited by Lizling; 18-10-2012 at 6:05 PM.
    Saving for deposit: Finished!
    House buying: Finished!
    Next task: Lots and lots of DIY
    • Fire Fox
    • By Fire Fox 18th Oct 12, 6:20 PM
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    Fire Fox
    What arrears? What are you on about? I've never been in arrears in my life.

    My point is that I know perfectly well that I'm better off than a hell of a lot of renters (I'm squeezed, but not struggling), and this sample of thousands is taken from those who are struggling the most. Therefore, it's reasonable to assume that a great many of them have had to make more cutbacks than I have.
    Originally posted by Lizling
    Do you live alone or as part of a couple? Do you live in a shared house or alone? An average income plus average rent doesn't give the full picture. Anyone who has a second income in the house will have fewer cutbacks to make than a singleton to save the same amount per head towards a deposit or keep their heads above water.

    If everyone prioritised their rent over all other outgoings very few would be in arrears. I don't believe there are too many households that don't have enough income to pay their rent, council tax and food. The sample is potentially not representative of the general population as it could be a sample of people who prioritised their car, energy, media packages and credit card debt over their rent. You see that a lot if you go onto the Debt Free Wannabe board.
    Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️
    • Credit-Crunched
    • By Credit-Crunched 18th Oct 12, 6:27 PM
    • 2,115 Posts
    • 4,140 Thanks
    Credit-Crunched
    Ahh the great British dream of owning a house, I did not realise that renting in the UK meant a life cut off from the outside world on par to living in a Benedictine monastary.

    Dont understand your line about the 80s either, did nobody rent in the 80s?
    Originally posted by Heliflyguy
    Clearly you don't understand otherwise you would not ask about the 80's reference.

    I was highlighting the so called 'squeezed' renters and their financial pain is slightly difference to the squeeze in the early 80's recession.

    The question that was being asked was not Sky or Virgin, it was "is gas or electricity being paid this month"

    I am not saying things are easy, but this appears to be another shallow, ill thought out, sensationalist article about how everyone in the country is getting shafted.

    It is not the case, many people, friends included, say they are skint, yet go out and by the new Iphone, or takeaway.

    I am not saying live a monasatarian lifestyle, I am however saying that if you want something in life, it does not come easy, and sacrifices need to be made.

    One thing many don't agree with, following on from the great quick cash, i deserve the best Labour gov.

    It would be nice to see a balanced argument written by the MSE time at some stage,
    • Credit-Crunched
    • By Credit-Crunched 18th Oct 12, 6:28 PM
    • 2,115 Posts
    • 4,140 Thanks
    Credit-Crunched
    Do you live alone or as part of a couple? Do you live in a shared house or alone? An average income plus average rent doesn't give the full picture. Anyone who has a second income in the house will have fewer cutbacks to make than a singleton to save the same amount per head towards a deposit or keep their heads above water.

    If everyone prioritised their rent over all other outgoings very few would be in arrears. I don't believe there are too many households that don't have enough income to pay their rent, council tax and food. The sample is potentially not representative of the general population as it could be a sample of people who prioritised their car, energy, media packages and credit card debt over their rent. You see that a lot if you go onto the Debt Free Wannabe board.
    Originally posted by Fire Fox
    Well put,
    • Lizling
    • By Lizling 18th Oct 12, 6:43 PM
    • 863 Posts
    • 1,675 Thanks
    Lizling
    I'm well aware of all those factors but to include everything that affects my outgoings would give far more away than I want to put on the internet. I'm just going to say that if you net out all the costs more vs costs less factors for me over the last year or so, I'm confident that my situation will come out pretty near average.

    I'd say it's pretty easy to prioritise rent and still get into arrears. Certainly I know people who find themselves in that position at least occasionally, with other essential bills like the electricity having to go unpaid. An unpredictable cash flow (e.g. temp worker, freelancer etc.) and/or an unexpected cost is all that takes for anyone without savings.
    Saving for deposit: Finished!
    House buying: Finished!
    Next task: Lots and lots of DIY
    • Fire Fox
    • By Fire Fox 18th Oct 12, 7:07 PM
    • 25,239 Posts
    • 29,497 Thanks
    Fire Fox
    I'd say it's pretty easy to prioritise rent and still get into arrears. Certainly I know people who find themselves in that position at least occasionally, with other essential bills like the electricity having to go unpaid. An unpredictable cash flow (e.g. temp worker, freelancer etc.) and/or an unexpected cost is all that takes for anyone without savings.
    Originally posted by Lizling
    We are no longer talking about the average person with an average income but people on the lowest incomes. That is not comparable to you on an average income. Of course they are going to have to make more cutbacks than you and are more likely to be in arrears. People with an unpredicable outcome need to average out their income and spend accordingly.

    If your rent was more than your income you would be entitled to housing benefit, if you freelance or temp you are entitled to JSA between jobs (although that system is unsatisfactory). Sometimes it is more financially advantageous to quit the temping and freelancing and rely on benefits whilst you look for full time paid work. Someone might get into temporary arrears whilst waiting for benefits to be assessed but you catch up as soon as the HB arrives.

    Juggling with other seemingly essential bills is not prioritising rent. If you go onto DFW you will see the recommendations by people there and from debt charities are to prioritise rent/ mortgage, council tax and food, not to juggle with other outgoings. It is far worse to be evicted and homeless than have your energy put onto a prepay meter. If someone can't manage rent plus their basic bills once benefits are taken into consideration then unfortunately they need to downsize - a singleton moving from a sole occupancy flat to a shared house for example. In those cases living in a property larger than their income can support is a luxury just the same as media packages.
    Last edited by Fire Fox; 18-10-2012 at 7:17 PM.
    Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️
    • FireWyrm
    • By FireWyrm 19th Oct 12, 11:20 AM
    • 6,432 Posts
    • 12,163 Thanks
    FireWyrm
    Firefox is right.

    I spend much if my time over at DFW attempting to help and council people who have difficulty differentiating between priority and non priority spending.

    I remember the 80's. I remember my father being made redundant three times in a year. I remember the freezing winter and frost in the inside of the windows because the heating was off. I remember the days and days of jam sandwiches morning, noon and night because 4.50 was all we could scrape together for the week. I remember bare cupboards, potato pie with a single mashed sausage and I remember the haunted, pinched look in my parents faces. I know that they went hungry to give me food and the work was by no means a certainty. I remember watching the lady across the road standing the street crying with two suit cases and two little children as they boarded up her home.

    This 'credit crunch' is nothing like the 80's. Frankly, it's a piece of pi$$ to weather. When you have sold everything of value in the house including the iPhone, turned off everything you can and spent a miserable couple of days eating nothing, then tell me you are in financial trouble and finding it difficult to live. Thanks to easy credit, we have a generation or so who have never had a tough time in their lives and can't understand why they can't have the latest must have item. Most can't fathom the idea of even skipping a single meal because they were taught that the world owes them a living.

    This headline is sensationalist rubbish which once again panders to the politics of envy and pseudo class hatred.
    Debt Free! Long road, but we did it
    Meet my best friend : YNAB (you need a budget)
    My other best friend is a filofax.
    Do or do not, there is no try....Yoda.

    [/COLOR]
    • The Pixi
    • By The Pixi 19th Oct 12, 12:17 PM
    • 298 Posts
    • 234 Thanks
    The Pixi
    The 80s was bad? - using some of the logic gleaned here I'd argue WWII was not that great a time to live, or the dark ages for that matter.

    Makes you wonder why all those people in the 80s had the audacity to complain, especially after the country had delivered free healthcare and large swathes of modern social housing!

    Seems people are just always ungrateful - damn progress...
    Mortgage Balance 182,789.00 of 259,250.00 Overpayment Total 48,847.13
    Monthly payment down 258.82 Overpaid last month 1096.38
    End of month 11/2017
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