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jonthefox

Debt

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So this morning my credit card bill came. Bearing in mind it was mainly from Christmas and totalled a few hundred quid it still put me a sour mood. I had a good old moan about it at work but was told I should countmyself lucky . Out of the two blokes I was talking to , one owed &17 grand and the other £30 grand. This debt didn't include any mortgage debt either. To say I was shocked was an understatement but it got me thinking. Is debt more widespread than anyone's prepared to admit?. Are we all secretly drowning in debt ?. 

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7 minutes ago, jonthefox said:

So this morning my credit card bill came. Bearing in mind it was mainly from Christmas and totalled a few hundred quid it still put me a sour mood. I had a good old moan about it at work but was told I should countmyself lucky . Out of the two blokes I was talking to , one owed &17 grand and the other £30 grand. This debt didn't include any mortgage debt either. To say I was shocked was an understatement but it got me thinking. Is debt more widespread than anyone's prepared to admit?. Are we all secretly drowning in debt ?. 

 

well I have a student loan debt of £20k+ which is currently getting paid back at a fractional rate per month. 

 

I think a lot of people are in debt but until it gets to a seriously unmanageable level, I doubt anyone would freely talk about it?

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From my circle of friends and relatives I dont think that debt is a major problem.

 

90% of them will talk about how its a struggle to pay the mortgage or rent, feed and clothe the kids and save but most seem to just about get by without going into debt I think but saving is a bit of a no no these days with many. The thing is with these things that most people dont advertise there financial situation as if they have cash they dont want people to know who may tap them for some cash or even worse put some kind of curse on them for being lucky buggers LOL.

 

However, it seems that we do a lot more social stuff at peoples houses than going out these days. Not that its a bad thing as no one wants to pay lunatic prices and be sharing a pub with a bunch of weirdos but where there used to be loads of birthday parties or celebrations in clubs and pubs or restaurants there seems to be loads more house gatherings or even hall hiring to keep costs down.

 

Im sure the circumstances would change if one or both of the couple are out of work for a period of time. It seems to be that you can only get buy with two incomes these days which isnt what I would call amazing living, maybe existing at best.

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I think I read somewhere recently that the average UK household is around £10k in debt (excluding mortgage). I nearly went bankrupt in 2008 and it completely changed my outlook on debt and expenses. I'm happy to admit that apart from my mortgage I'm debt free now, but it took some serious discipline and effort to pay everything off. I save like a bastad now and only use my credit card in absolute emergencies then pay it straight off next month. I don't know anyone who is seriously in debt but I guess it's not the type of thing you broadcast and talk about to your friends?

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If anyone is suffering with major debts that they can't afford then speak to a debt charity like StepChange, they're free to use and can set up a debt repayment plan with your creditors. Don't use a paid for service who will take a percentage of your repayments as commission.

 

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Live for today attitude of today's generation, unlike my parents who never had access to credit, so it was pay full as you go.

 

It's very easy to rack up debt, at one point I had 15k in credit cards, but my situation was a necessary one and very short term

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49 minutes ago, m4DD0gg said:

People seem to think having 10-30K on a credit card is fine. Incredible.

How else am I supposed to afford all that Colombian and the finest hookers st Matthews has to offer?

 

 

obviously I buy a vanilla latte from Costa every day and have a personalised number plate for good measure

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I've got a few payday loan debts from when I was younger, think they're probably ten times more than the original credit but I haven't acknowledged them for at least nine years so they'll be statute barred and the defaults came off my report years ago, all they can do is send me letters but legally speaking they can't get a judgement on me unless I acknowledge the debts. Free money in essence. (Not advertising this in anyway, from what I hear their court threats are more legitimate than when I was being chased)

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I've had to go through a hard re-set a few years ago. Not something I'm proud of or advocating, but after mounting medical expenses, a house needing constant repair, and a job that continued to cut hours it eventually became the only option.

 

I do use my credit card, but it's always paid off that month or the next, and it never exceeds my cash savings. I've simplified things considerably and I can't tell you how much of a relief it is. Renting a furnished flat, no car, and no expensive business ventures. So long as my health holds out I should be fine.

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1 hour ago, Barky said:

Two interesting BBC articles from recent days:

 

Household debt (not including mortgage debt) is at record levels

 

http://www.bbc.co.uk/news/business-38534238

 

Unless you're a pensioner and then you're rolling in disposable income

 

http://www.bbc.co.uk/news/business-38568288

Tbf a big part of that is going to be student loans - quick back of an envelope calculations puts me and my missus at ~£60000 in debt, but 100% of that is student loans. Since those are repaid as essentially a graduate tax they have about as much of an effect on the household budget as NI contributions.

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All depends on your income and whether you are paying interest on them. If you are disciplined enough interest free credit cards can work very well.

 

How many of you have an IPhone on contract? If you bought the phone outright and went on a sim only deal you would probably save over £100 if you pay it off before it bares interest.

 

That said, all of the interest free adds up. I have a sizeable amount on interest free as a result of a house move and treating myself to a ridiculous watch while buzzing we had just won the league which I admit is beyond stupid but I've budgeted accordingly and will be debt free by the end of the year.

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Guest seanfox778
3 minutes ago, ozleicester said:

Debt is the capitalists tool to keep the masses under control. I especially feel for the young who are being saddled with a massive debt before they even enter the workforce.

 

 

 

This is true, I went on holiday to America last year and I was shocked at how you need a credit card to do a lot of things. Some places don't even accept debit cards but credit cards are fine. 

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http://www.bbc.co.uk/news/business-37504449

 

I think this study really shows just how bad some people have it. 16million people have less than £100 in savings, that's an awful lot of people living week by week. It's not hard to see how people can easily fall into debt. Ill from work for a couple of weeks? Debt. Car breaks down and needs a few hundred quid worth of repairs? Debt. Need a tooth capping? Debt...

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6 hours ago, Richard said:

approx 50 grand in student debts

The government have been very clever over the years.

When I was younger I wouldn't have been able to go to Uni as I didn't have the qualifications. 

So there was high unemployment or maybe you took a poorly paid job.

Then they changed the system so if you could do a fairly average fart, you could go to Uni, which basically took you off the streets and gave you a purpose in life.

But the downside is that you have to pay for it yourself and people end up with huge debts. 

The average family have revelled in the idea that their offspring were bright enough to go to Uni, when really it suddenly became accessible to everyone. They loved telling everyone how bright their kids were, but the debt involved these days is horrific.

Well done the government in getting the kids off the street and making them pay for it themselves, but these debts are horrific and lead people to normalise debt from a very early age. 

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I admit to having debts. I see them as manageable and have never once missed a repayment.

 

However it is just so easy to borrow money these days of course people are going to be in debt.

 

We live in a want it now society.

 

The biggest problem is savings now days. It's such a difficult thing to end up with any spare cash at the end of the month. If I manage to put 160 quid to one side each month I've done well.

 

We have a small savings account and whilst I know the interest rates are shit and I should use it to clear debts it would take months maybe even years to save that again even without the repayments on the debts. So it sits there as a small safety net should we ever need it.

 

Leicester being in Europe this season hasn't helped as I had to use my credit card to fund flights and hotels etc. So I had cash to change for currency.

But there was no way I was missing that. Hopefully I can clear that bill in April.

 

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7 hours ago, ozleicester said:

Debt is the capitalists tool to keep the masses under control. I especially feel for the young who are being saddled with a massive debt before they even enter the workforce.

 

 

 

Quite.

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3 hours ago, Merging Cultures said:

Credit Cards are not necessarily bad, especially if you pay it off straight away. They have better fraud protection and reimbursement rules than debit cards for a start. So I often use mine to ensure that I don't get scammed.

100%. I use my credit card for every single purchase I make. I hardly even carry cash which is sometimes problematic. 

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