Its like 2008 never happened....

Discussion in 'Off Topic Chat' started by jimmyhillsfanclub, Jul 25, 2017.

  1. jimmyhillsfanclub

    jimmyhillsfanclub Well-Known Member

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    Rise in personal loans dangerous, Bank of England official says - BBC News

    This really fucking twists my melon......

    We've had nearly a decade of record (artificially low) interest rates.............cheapest mortgages in history....cheapest loan rates in history.....but our society appears to be so wrapped up in greed & consumerism, folks just can't stop living beyond their means........

    ....surely its time to rein this in by raising interest rates.........but Carney & his mates probably won't.....

    Good old Jarvis knows why......

     
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  2. wingy

    wingy Well-Known Member

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    Haha!
    Love that.
     
  3. scubasteve

    scubasteve Active Member

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    They couldn't raise interest rates, it would cripple the housing market.
    The amount of young people I know who are mortgaged up to their eye balls, some just to get on the property ladder but a lot instead of starting at the bottom buying a do me upper getting some equity then buying the house they want a few years later like people used to do, they want the big detached house with no work to do now.
    Young people (I sound old when I say it and im only 38) just seem to want everything day 1 and think they are entitled to it, 30k Audi on lease, 250k mortgage etc.. what a lot don't realise is mortgages have never been so cheap and anyone 30 and younger have never seen 5+% mortgage rates, if they go up even by 2-3% which they will in the end, some people will be in serious trouble.
     
  4. Ian1779

    Ian1779 Well-Known Member

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    I don't think it's as simple as saying it's greed and consumerism - a lot of that unsecured personal debt will be spent on food and utilities as people's wages don't stretch far enough.
     
  5. xcraigx

    xcraigx Active Member

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    I can't see interest rates being increased significantly for a generation. Too many people are up to their eyeballs in debt and the slightest increase is going to leave many millions in a struggle to survive. Obviously this situation could have been avoided if the banks had been a little bit more responsible with their lending but they have messed it up again and it's going to take an awfully long time to remedy the situation.

    Being selfish for a second, i've got a tracker mortgage so here's hoping interest rates do stay nice and low :)
     
  6. Liquid Gold

    Liquid Gold Well-Known Member

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    It would be cheaper for me to have a £250k mortgage than it would be to continue paying rent. Some people don't realise how prohibitively expensive it is to rent. I have friends who are living in a less than desirable area of London who pay £800 each for a 1 bed flat. Util house prices are bought to an acceptable level and significant house building is undertaken then all is happening is my generation being thrown under the bus. The flat I rent now was bought by the landlord 20 years ago for 4 times his annual wage. If I wanted to buy it then it would cost me 20 times my wage. It's not on.
     
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  7. chiefdave

    chiefdave Well-Known Member

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    While I'm sure there are plenty of people who are spending too much on things they don't need there's an ever increasing section of the population who struggle to balance the books. People who are in full time, professional jobs.

    A lot of people can't get on the property ladder so rent. We pay a higher % of our wages on rent than any other country in Europe. I live in an average 1 bed place and I'm paying practically double to rent what I would on a mortgage.

    Add in to the mix years of wage suppression couple with increased costs of living and you've got a recipe for disaster.
     
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  8. Malaka

    Malaka Well-Known Member

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    It pays to get loans and switch them to credit cards for zero per cent. Very little point in saving unless you put it into your pension or a share dealing isa. Totally understandable that there is so much debt.
     
  9. eastwoodsdustman

    eastwoodsdustman Well-Known Member

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    Unfortunately people's priorities have changed over the years. Too many now think that its their right and a basic need to have sky tv, pay £40 a month for a mobile phone and go abroad for their holidays.
     
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  10. shmmeee

    shmmeee Well-Known Member

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    A mobile is essential as is an Internet connection. Might as well whine about the undeserving poor having heating and electric lights.

    Longest period of wage stagnation in our lifetime. That and austerity is why personal debt goes up and business isn't investing either.

    If the government wants to take in more cash than it spends, the private sector has to spend more than it takes in. Basic maths that.

    Need heavy investment in upping worker productivity and raising wages (they go hand in hand). With interest rates so low, government spending is our best best at stimulating the economy and by God it'll need stimulating over the next decade.

    Time we stopped chasing insane ideology written on the back of a fag packet and get back to grown up interventions in the economy to keep it ticking over.
     
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  11. eastwoodsdustman

    eastwoodsdustman Well-Known Member

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    Sorry, but why is a mobile phone and the internet essential in this day and age? People can and still do live without them. If you cant afford them then you dont have them. Basic common sense that. Its not rocket science and unfortuantely people these days just have what they want and worry about the cost later irrespective of whether they can afford them or not.
     
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  12. Captain Dart

    Captain Dart Well-Known Member

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    The phone contract isn't. People simply prioritise in ways that cost them more money than necessary.
     
  13. Marty

    Marty Well-Known Member

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    Lad at work just picked up an Audi S4. Pays over £550 a month for it, brand new phone every time a new one is released, 4 holidays abroad a year, yet complains he can't afford to buy a house. Still living with his parents at 34 and not likely to move out any time soon. Simple fact is to be able to afford a deposit and payments on a house you need to cut your outgoings elsewhere.
     
  14. Nick

    Nick Administrator

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    £550 a month on a car is scandalous, wouldn't mind the S4 though :)

    If money in is reduced then money out needs to go, if god forbid anything happened where I didn't have any money coming in then it would be work out the necessities and cut the rest as much as possible until money was coming in.
     
  15. jimmyhillsfanclub

    jimmyhillsfanclub Well-Known Member

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    Unfortunately some people will always struggle financially.....same as it ever was.....

    However, the general principle of living within your means & cutting your cloth accordingly, regardless of your income level, appears to have been lost....especially in the younger generation......the figures back that up.

    However, this is clearly be design......the banksters, corporates & markets want it this way......but people are too quick to please them by borrowing without a second thought....and while it appears to be virtually free to do so in the short-term, there is no incentive for people to stop it......

    But we need to stop it......its unsustainable....both economically & environmentally.....
     
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  16. Liquid Gold

    Liquid Gold Well-Known Member

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    It really fucks me off when people who had affordable housing and guaranteed jobs say my generation can't live within our mean. We fucking struggle because everything is so much more expensive in comparison with our wages than when you were our age. Your generation is hording the wealth this country has and the rest of us are being told we can't handle money. Fuck that, stop buying houses to make money.
     
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  17. Marty

    Marty Well-Known Member

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    How old are you?
     
  18. Liquid Gold

    Liquid Gold Well-Known Member

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    In the last 4 years I've paid £35,820 in rent - 4 years. You're going to tell me I can't manage my money when I have to shell out that much just for a roof over my head, before bills, before water, electricity, before I put any petrol in my car, before I buy any food.
     
  19. Liquid Gold

    Liquid Gold Well-Known Member

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    I'm 29
     
  20. Liquid Gold

    Liquid Gold Well-Known Member

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    By the time I get anywhere near buying a house I'll have easily paid over £100k in rent. Is that right?
     
  21. Marty

    Marty Well-Known Member

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    I'm 30. Owned my home for 3 years. Left school at 15 without a single qualification. I was working 100 hour weeks for over 6 months straight to afford my deposit.

    I can look around at work now 22, 23 year olds own their home as they're sensible with money. Then you have near 40 year old who would rather go down the pub every night and have no chance of ever owning.

    I don't know your circumstances but in most people's cases if you're willing to sacrifice then you can own.
     
  22. Nick

    Nick Administrator

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    Jeez, that's shit loads of rent!

    You could buy a basic house to work on for 8 years of that rent.
     
  23. Liquid Gold

    Liquid Gold Well-Known Member

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    I've been working part time for years while I did my degree and my masters part time in order that I didn't get in too much student debt (Although I am still 10s of thousands of pounds in debt). I now work for an international development charity doing something I believe in, this pays me a lot less than I would earn in the private sector doing the same work.

    Yes you're correct, I could own a house now, all I'd have to do is give up everything I've work towards and everything I believe in and simply look at owning a house as the only priority in my life.

    Like I said I will have paid over £100k in rent before I get near ownership - is that right? Of course it's not, something needs to be done with home ownership in this country to make it not prohibitively expensive and being told I can't manage my money just sets me off. Of course I'm not saying there are people that can't, as pointed out by the dick living with his parents paying £600 a month for a car. But let's not pretend it's a generational thing.
     
  24. martcov

    martcov Well-Known Member

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    I pay 800 € a month leasing a Land Rover over 4 years. It is for my business though, so it is not a luxury, but a necessity. It still takes a lot of work to get that in every month. Subsidies Wasps through advertising and Grendel as he works for LR...:-(
     
  25. Nick

    Nick Administrator

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    Jesus. It's all well and good if you earn a fair bit to cover it and you need it for work.

    I always do think back and think I'd be throwing £20's away if I lived at home still now.

    [​IMG]
     
  26. Nick

    Nick Administrator

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    Thinking about it though, when I moved out and bought a house I just bought something I could easily afford. Not in the best area and needed a fair bit of work to make it nice but a nice mortgage amount which now it's done up is nice.

    I have mates who wanted to live on a certain street and didn't want to do anything who pay 3 times the mortgage a month and break their backs to try and cover it every month.

    Might just be me but I'd much rather live in somewhere not as nice but be comfortable. If circumstances change can always move somewhere nicer / bigger if needed.
     
  27. Marty

    Marty Well-Known Member

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    I don't want to sound like a dick here but you made and continue to make the choice of earning below what you could. You do something you love and enjoy at the expense of earning more money.
     
  28. Liquid Gold

    Liquid Gold Well-Known Member

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    Yet I still spend tens of thousands of pounds in rent. In years gone by what I earn would have been more than enough to get me a deposit on a mortgage.
     
  29. fernandopartridge

    fernandopartridge Well-Known Member

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    The government need the greed and consumerism as it gives the illusion of wealth.

    The fact is that Britain has for 30 odd years (since Maggie de-regulated credit controls) binged on credit, because wage growth has been practically stagnant. If credit didn't exist, the decrease in living standards would be huge.
     
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  30. fernandopartridge

    fernandopartridge Well-Known Member

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    Fuck them, they should get used to the decline in living standards despite apparently years of economic growth. You're being had.
     
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  31. fernandopartridge

    fernandopartridge Well-Known Member

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    £550 for a fucking car! Jesus wept. It's an Audi mind so the lad is obviously a c**t.
     
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  32. Marty

    Marty Well-Known Member

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    That he is.
     
  33. Marty

    Marty Well-Known Member

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    Minimum wage now would get you something decent In the 80's. My parents paid 17k for there's. My grandparents paid 2k in the 60's.
     
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  34. Captain Dart

    Captain Dart Well-Known Member

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    No it isn't. Houses & pub beer is more expensive but food is cheaper, technology is way cheaper, white goods are cheaper, airline tickers are cheaper, cars are so much more reliable and economical so effectively cheaper, clothes are cheaper especially if you buy inexpensive stuff.
     
  35. Captain Dart

    Captain Dart Well-Known Member

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    You can still buy a 2 bed flat in Coventry (or a Maisonette) for £100K. Leaves a lot to be desired but the mortgage is surely manageable on £25K salary or thereabouts, about £450/month for 25 year term.
     

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