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MSE News: Rising rents push more into debt

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Comments

  • Fire_Fox
    Fire_Fox Posts: 26,026 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    Lizling wrote: »
    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.

    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.⭐️⭐️⭐️ ⭐️⭐️
  • Heliflyguy wrote: »
    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?

    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,
  • Fire_Fox wrote: »
    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.

    Well put, :T
  • Lizling
    Lizling Posts: 882 Forumite
    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! :j
    House buying: Finished!
    Next task: Lots and lots of DIY
  • Fire_Fox
    Fire_Fox Posts: 26,026 Forumite
    Name Dropper First Anniversary First Post Combo Breaker
    edited 18 October 2012 at 7:17PM
    Lizling wrote: »
    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.

    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.
    Declutterbug-in-progress.⭐️⭐️⭐️ ⭐️⭐️
  • FireWyrm
    FireWyrm Posts: 6,557 Forumite
    First Anniversary Combo Breaker Debt-free and Proud!
    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
    The_Pixi Posts: 299 Forumite
    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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