credit crash britain

[graysblue]

anyone watch this tonight was on beeb 2 at 730pm.

are these people crazy.

1 guy racked up 272k on credit cards and loans

i lady on the dole racked over 10k on her cards

utter madness.

mind you the prog showed an auction where a 50k porshe was sold for 0k.


the prog also stated the credit crisis was caused by the american mortgage market.

 

[steveo]

the prog also stated the credit crisis was caused by the american mortgage market.

The alarming thing is, having just returned from the States, there are a load of car manufacturers running TV ads along the lines of "buy this big truck on our credit terms and get $5000 cash back"

Im sitting there thinking didnt this all start with lending people money who couldnt afford to pay it back?

Bonkers.

 

[graysblue]

the prog stated that credit card companies love "revolvers" the term for those who rack up big on their cards and then pay the minmum monthly payment ,this debt will give the banks interest for many years.

the woman on the dole maxed out 2 cards for around 11k,she then met some geezer and he then did the same thing.

easy credit should be outlawed.

 

[Billy Bests boot laces]

People today got no self discipline. Up to 18 years ago i was paid weekly in cash. You budgeted accordingly, and when it was gone that was that. I've had credit cards for god knows how many years and am proud to say i have never paid a penny interest on any of them. And yes, i do use them on a regular basis.

 

[graysblue]

it seems todays society live off their plastic,personal debt has reached 1 and a half trillion smackers meaning every man woman and child owe 16k each!!!

the goverment in their wisdom allowed such folly and even though the last 10 years its been money madness this goverment failed to save anything themselves,hence why they are now doing what the average joe has done and that is simply borrow more cash.

 

[* ORM *]

People today got no self discipline. Up to 18 years ago i was paid weekly in cash. You budgeted accordingly, and when it was gone that was that. I've had credit cards for god knows how many years and am proud to say i have never paid a penny interest on any of them. And yes, i do use them on a regular basis.

That's all very well but you and I grew up in a different era. For the last 20 years living off credit has been actively marketed by financial companies and endorsed by successive governments. Despite a negative equity crisis in the early 90s with lenders saying that never again will they lend salary multiples of more than 3x less than 10 years later mortgages were handed out like confetti. Kids have grown up thinking money grows on trees and parents have been steamrollered by society into making sure their kids have the latest clothes and toys.

The harsh lessons that people are learning will cost them their jobs and homes. Sadly in around 10 years time all of this will probably be forgotten again on another get rich (pay later) frenzy.

 

[Firestorm]

Unfortunately I have experience of this.
I basically lived beyond my means for most of my first marriage. Not excessively but enough to have a loan credit card etc, primarily to give as good a life as i could provide for my wife and kids. It was never going to be enough to bit me on the bum so i was ok.
Then the marriage broke up, and in order to try and keep the kids and myself "happy" I bought things....Treats always cheer people up don't they, (as do new clothes and plenty of booze) . This combined with the stress of the situation clouding my thinking and all the "have a credit card" mail was getting prompted a thought of "why not i will sort it all out later" but i didn't ...when the divorce went through i owed more to CC companies than I was ordered to pay the ex. Luckily the future mrs FS had equity and was able to bail me out.

Personally i feel that a lot of the problem with debt is the large rises in house prices, not the cost of buying the house, but the false sense of security the large increases inequity bring. Far far more people are re mortgaging to clear debts than ever before, They see the equity in their property as money going to waste, so they borrow against it. Either maintaining a level of low equity in their property or building up debt with a view to re mortgaging later.
There must be loads of people out there who would have been trying to remortgage to clear debts accrued of the past 2 years only to find out that the value of their property has dropped and mortgages are like hens teeth.

 

[graysblue]

Unfortunately I have experience of this.
I basically lived beyond my means for most of my first marriage. Not excessively but enough to have a loan credit card etc, primarily to give as good a life as i could provide for my wife and kids. It was never going to be enough to bit me on the bum so i was ok.
Then the marriage broke up, and in order to try and keep the kids and myself "happy" I bought things....Treats always cheer people up don't they, (as do new clothes and plenty of booze) . This combined with the stress of the situation clouding my thinking and all the "have a credit card" mail was getting prompted a thought of "why not i will sort it all out later" but i didn't ...when the divorce went through i owed more to CC companies than I was ordered to pay the ex. Luckily the future mrs FS had equity and was able to bail me out.

Personally i feel that a lot of the problem with debt is the large rises in house prices, not the cost of buying the house, but the false sense of security the large increases inequity bring. Far far more people are re mortgaging to clear debts than ever before, They see the equity in their property as money going to waste, so they borrow against it. Either maintaining a level of low equity in their property or building up debt with a view to re mortgaging later.
There must be loads of people out there who would have been trying to remortgage to clear debts accrued of the past 2 years only to find out that the value of their property has dropped and mortgages are like hens teeth.

to a point i agree regarding property prices.

however there are many millions who do not own property and just livev the high life without thinking of futere consequences.

the other week some prog showed a young girl who lived with her parents and had cracked 43k on her cards which was spent on clothes,holidays ect.