Britions face a lifeftime of debt...
#61
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Originally Posted by Petem95
Labour have encouraged cronic borrowing to prop up the economy
The tories btw let you get your house on a morgage then the interest rates shot up from 5% to nearly 15%, honestly there were no house reposessions or the likes and people didnt end up with serious negative equity of a far greater type than just credit card debts.
Tony
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Originally Posted by pslewis
you remember the Tories?? They did away with credit limits and mortgage mutiple limits and borrowing restrictions ..............
"credit limits" and ""mortgage multiples" are not government imposed limits - they are what the finance company are prepared to lend.
However, that wouldn't suit your "Blame the Tories even though the greatest leader of all time has been in power for nine years" agenda.
#63
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As far as i see it this countrys economy is literally propped up by these peoples willlingness to go into debt and the property 'bubble' which is a confidence thing - as soon as eastern european prices even out and China gains 'independence' this place will go to ****.
#64
Originally Posted by Drunken Bungle *****
My sister had a fabulous idea - she gave her son generous pocket money from the age of 11 - BUT he had to buy most of his clothes and all of his nice stuff - CDs, PC Games, Sweets, Cinema tickets, etc. The first couple of months he got his fingers burned - but ever since he has been really savvy and managed his money brilliantly - he's 18 next birthday and they never have any problems with him.
#65
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Whilst property may be a good investment as well as somewhere to live, you can't lose sight of the fact that a mortgage is a debt, and the money you're paying into it is paying off that debt. You may have borowed money to invest (whilst paying for somewhere to live), it may well be at an interest rate that is less than the returns you've made out of it, and it almost certainly makes more financial sense than renting, but it isn't savings.
I'm sure a majority of britains are in debt, by nature of having a mortgage, even those relatively rare few who don't have other debts. Most who aren't have paid off their mortgage are in their twilight years (and too old to enjoy it, probably capable of donig nothng more than trolling bulletin boards or something), or don't own a house.
Having spent the last 10+ years not borrowing anything except the mortgage, buying cars cash etc, I am sure I've saved an awful lot of money in interest payments, and that money has improved my quality of life, whilst building up some useful savings. Also means I'm in the process of buying a nice 4 bed detached house in berkshire in my early 30s, the mortgage payments won't be crippling (<50% mortgage), and I'll still have enough money left over every month + savings to enjoy myself. Personally I much prefer this situation than declaring myself bankrupt on a regular basis!
I'm sure a majority of britains are in debt, by nature of having a mortgage, even those relatively rare few who don't have other debts. Most who aren't have paid off their mortgage are in their twilight years (and too old to enjoy it, probably capable of donig nothng more than trolling bulletin boards or something), or don't own a house.
Having spent the last 10+ years not borrowing anything except the mortgage, buying cars cash etc, I am sure I've saved an awful lot of money in interest payments, and that money has improved my quality of life, whilst building up some useful savings. Also means I'm in the process of buying a nice 4 bed detached house in berkshire in my early 30s, the mortgage payments won't be crippling (<50% mortgage), and I'll still have enough money left over every month + savings to enjoy myself. Personally I much prefer this situation than declaring myself bankrupt on a regular basis!
#66
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Debt is great, without it I would be stuffed.
With no parental support I funded myself through five years of university so that by the time I graduated and bought/furnished a house and car I had six times my first job's annual gross salary in debt.
Eight years on, all that debt is now clear and I have no debt, no mortgage, and the same amount available as cash within a week as that debt I started with.
That is based on saving like mad, but also being prepared to take calculated risks with debts for things worthwhile... and waiting for the flash cars/expensive holidays so that no loans are required.
These low interest rates have been the time that the sensible amongst us have been making headway into our debts to clear them before the next big rise.
With no parental support I funded myself through five years of university so that by the time I graduated and bought/furnished a house and car I had six times my first job's annual gross salary in debt.
Eight years on, all that debt is now clear and I have no debt, no mortgage, and the same amount available as cash within a week as that debt I started with.
That is based on saving like mad, but also being prepared to take calculated risks with debts for things worthwhile... and waiting for the flash cars/expensive holidays so that no loans are required.
These low interest rates have been the time that the sensible amongst us have been making headway into our debts to clear them before the next big rise.
#67
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There is going to be trouble when the next interest rate hike happens ....
When interest rates were 12% - a 4% hike was a 33% Increase in payments, bad enough you may think ....
But, now with interest rates at 5% - a 4% hike will mean a 80% Increase in payments!!!
Now, I am ok - I have no debt ...... but those who are managing OK at present - would they be if they had to find an extra 80% to fund their mortgages????
Pete
When interest rates were 12% - a 4% hike was a 33% Increase in payments, bad enough you may think ....
But, now with interest rates at 5% - a 4% hike will mean a 80% Increase in payments!!!
Now, I am ok - I have no debt ...... but those who are managing OK at present - would they be if they had to find an extra 80% to fund their mortgages????
Pete
#68
The biggest cause of the problems this country faces is the rise in property values. It means that people have an incredibly high value asset to borrow against and as a result many have borrowed way above their means. My sister is ALWAYS proudly quoting what their house is worth but they're up to their knecks in debt. She doesn't seem to realise that the only people that benefit from over inflated property prices are the ones that own more than one house, if you own only one (normal/average) property, it doesn't matter whether it's worth £1000 or £250,000. The only thing we are managing to do is price our own children out of the market or saddle them with MASSIVE debt at a young age in order to get on the property ladder.
Last edited by 365; 28 May 2006 at 06:43 PM.
#69
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The property market is actually a free market and suffers from market forces, like it or not.
Interest rate hikes are the ONLY thing that will reduce house prices ... and the fact that demographics mean that we are having fewer children.
But, marraiges and relationships break down ... then you need two houses where one was enough before ... it's all about supply and demand.
Pete
Interest rate hikes are the ONLY thing that will reduce house prices ... and the fact that demographics mean that we are having fewer children.
But, marraiges and relationships break down ... then you need two houses where one was enough before ... it's all about supply and demand.
Pete
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Originally Posted by pslewis
There is going to be trouble when the next interest rate hike happens ....
When interest rates were 12% - a 4% hike was a 33% Increase in payments, bad enough you may think ....
But, now with interest rates at 5% - a 4% hike will mean a 80% Increase in payments!!!
Now, I am ok - I have no debt ...... but those who are managing OK at present - would they be if they had to find an extra 80% to fund their mortgages????
Pete
When interest rates were 12% - a 4% hike was a 33% Increase in payments, bad enough you may think ....
But, now with interest rates at 5% - a 4% hike will mean a 80% Increase in payments!!!
Now, I am ok - I have no debt ...... but those who are managing OK at present - would they be if they had to find an extra 80% to fund their mortgages????
Pete
#71
Originally Posted by pslewis
The property market is actually a free market and suffers from market forces, like it or not.
Interest rate hikes are the ONLY thing that will reduce house prices ... and the fact that demographics mean that we are having fewer children.
But, marraiges and relationships break down ... then you need two houses where one was enough before ... it's all about supply and demand.
Pete
Interest rate hikes are the ONLY thing that will reduce house prices ... and the fact that demographics mean that we are having fewer children.
But, marraiges and relationships break down ... then you need two houses where one was enough before ... it's all about supply and demand.
Pete
#72
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Originally Posted by 365
It also isn't helped by people owning 20, 30 or 100+ houses. How many people are 'property developers' these days?
And every single one is being paid for by someone else ....... but I get to keep them at the end!!
Pete
Last edited by pslewis; 28 May 2006 at 06:58 PM.
#74
Originally Posted by pslewis
Interest rate hikes are the ONLY thing that will reduce house prices ... and the fact that demographics mean that we are having fewer children.
From my time in Switzerland I recall that home ownership was at around 25%. Tenants have massive protection though - for example increases in rent could only be justified by major renovation work or raises in interest rates. Conversely, falls in government lending rates would have to be passed on to the tenant..
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Originally Posted by hades
Your figures are extremely flawed, even if the principle of your argument has good sense (which is rare in itself). Most loans/mortgages have this strange idea that you are also repaying the original capital investment, so the hike is much less than you're making out. Example, a mortgage of £100k over 20 years at 5% would cost ~£670/month. At 9% it's ~£910/month. That's "only" ~36% increase, not 80% - admittedly, still a major hike. Also worth noting that you'd probably find even now that the average mortgage rate paid in the country is well over 5%, probably more like 6-7%
#78
Originally Posted by dpb
quelle surprise..
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Originally Posted by saxperience
Don't need to save mate, thats what rich parents are for.......
Quite an adult view on the world there, saxperience, you are mature and wise beyond your years.
P.S Can I bring my washing round for you Mum to do? I'm sick of doing it! Cheers!
#80
Originally Posted by saxperience
Don't need to save mate, thats what rich parents are for.......
Someone from Labour decided the American Bankruptcy system was better.It certainly just encourages people to run up debt.
As for lending,adverts saying CCJ's? Bankruptcy? Homeless?No chance of paying us back?
No worries.Just call us on 08000800800cash line
It WILL all go pear shaped.People have no idea about being responsible anymore because they believe there is nothing to worry about.
BMW's have become the cars of the poor.Everyone has everything.A credit nation portraying a totally false view of what the economy actually is.
#81
You should get your facts right Tonyburns and at least tell all of the truth.
The world was in a deep recession which was not the fault of the Conservatives. Also the only real debts most people used to have then was a mortgage and/or a car. The high interest rates were unavoidable and it at least kept people out of more debt because of the cheap money which is being flashed around now. Until the IMF says enough. "Crisis, what crisis?"
Students at university did not have the threat of an enormous debt on their shoulders before they were even able to start earning a crust!
The Conservatives turned the economy around and put it on a solid basis by the time that Billy Boy and his rather queer cronies were elected and they were then able to "**** it against the wall" by creating an enormous and demonstrably expensive and useless bureaucracy. They have achieved nothing of note so far except to tell us what they are going to do and never actually do it. Every bit of an organisation etc. that they touch turns to worms! Starting with the Dome and then so on etc etc.
Their form of repressive lefty PC government wanting total control over the electorate does not fit in with the British traditional way of life and they have spent the last nine years dragging this country of ours into the cack!
When you start knocking the Conservatives with out of context attacks, you would do well to include the whole story. The sleaze that NL were shouting about with regard to the Conservatives pales into insignificance compared with their own for the last nine years. What a bunch of hypocrites!
The endless swanking and particularly unpleasant comments made by PSL do not help either. He seems to have the same demeanour as "Shaggy Two Fats" when he has the vulpine grin on his face whenever his obscene perks and free trips to the Indian Ocean to go Scuba diving in the pretence that he is studying the ecology and global warming are mentioned! Its all "look at me" and see how much better I am off than the rest of you! (Yow) Thats PSL to a T!
Les
The world was in a deep recession which was not the fault of the Conservatives. Also the only real debts most people used to have then was a mortgage and/or a car. The high interest rates were unavoidable and it at least kept people out of more debt because of the cheap money which is being flashed around now. Until the IMF says enough. "Crisis, what crisis?"
Students at university did not have the threat of an enormous debt on their shoulders before they were even able to start earning a crust!
The Conservatives turned the economy around and put it on a solid basis by the time that Billy Boy and his rather queer cronies were elected and they were then able to "**** it against the wall" by creating an enormous and demonstrably expensive and useless bureaucracy. They have achieved nothing of note so far except to tell us what they are going to do and never actually do it. Every bit of an organisation etc. that they touch turns to worms! Starting with the Dome and then so on etc etc.
Their form of repressive lefty PC government wanting total control over the electorate does not fit in with the British traditional way of life and they have spent the last nine years dragging this country of ours into the cack!
When you start knocking the Conservatives with out of context attacks, you would do well to include the whole story. The sleaze that NL were shouting about with regard to the Conservatives pales into insignificance compared with their own for the last nine years. What a bunch of hypocrites!
The endless swanking and particularly unpleasant comments made by PSL do not help either. He seems to have the same demeanour as "Shaggy Two Fats" when he has the vulpine grin on his face whenever his obscene perks and free trips to the Indian Ocean to go Scuba diving in the pretence that he is studying the ecology and global warming are mentioned! Its all "look at me" and see how much better I am off than the rest of you! (Yow) Thats PSL to a T!
Les
Last edited by Leslie; 30 May 2006 at 11:34 AM.
#82
Originally Posted by Leslie
When you start knocking the Conservatives with out of context attacks, you would do well to include the whole story. The sleaze that NL were shouting about with regard to the Conservatives pales into insignificance compared with their own for the last nine years. What a bunch of hypocrites!
Les
A: No ...& hence why they'll never quite manage to reach the hyprocrisy levels that the Tories did!
#85
Originally Posted by lozgti
I really hope my eight month old twins are so different from this.Mind you,they are displaying far more maturity even now.
Someone from Labour decided the American Bankruptcy system was better.It certainly just encourages people to run up debt.
As for lending,adverts saying CCJ's? Bankruptcy? Homeless?No chance of paying us back?
No worries.Just call us on 08000800800cash line
It WILL all go pear shaped.People have no idea about being responsible anymore because they believe there is nothing to worry about.
BMW's have become the cars of the poor.Everyone has everything.A credit nation portraying a totally false view of what the economy actually is.
Someone from Labour decided the American Bankruptcy system was better.It certainly just encourages people to run up debt.
As for lending,adverts saying CCJ's? Bankruptcy? Homeless?No chance of paying us back?
No worries.Just call us on 08000800800cash line
It WILL all go pear shaped.People have no idea about being responsible anymore because they believe there is nothing to worry about.
BMW's have become the cars of the poor.Everyone has everything.A credit nation portraying a totally false view of what the economy actually is.
Everyone is not as clever as you. How about do something about your knowledge of the world instead of moaning and whinging on a internet forum
#87
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Originally Posted by saxperience
Sorry Londoner,
Yes you may bring your spunky Y-fronts for my mum to wash,
Suppose if you live in a council house you dont have enough room for a washing machine do you? Is your name Simon Adams by any chance?????
Now im off for a couple of laps through town, going to see some hoes.
Be back in a while dude x
Yes you may bring your spunky Y-fronts for my mum to wash,
Suppose if you live in a council house you dont have enough room for a washing machine do you? Is your name Simon Adams by any chance?????
Now im off for a couple of laps through town, going to see some hoes.
Be back in a while dude x
Am I supposed to know who Simon Adams is? Is he the older gentlemen who will keep you in the style you have become accustomed to when your parents kick you out?
Careful a bigger boy doesn't take your car keys off you!
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