Interest Rates

[Guest Kopfkino]

8 minutes ago, leicsmac said:

This makes sense. Stressors like worrying about money (which is a big stressor) are going to impair rational cognitive function.

 

Question is though...what can be done about it?

 

With respect to the current debt problem I'm not entirely sure. There is no doubt that education and information on debt/finances is piss poor and its not surprising people end up in a mess because they have no idea what's actually going on.

 

But anyway, in the piece there was an implication that nudge policies might be somewhat useful. Other things that were mentioned were making it easier to deal with the state, complicated forms and paperwork are essentially a cognitive tax and including Housing Benefit in UC might not be the best idea, despite   the simplification from UC being good for the poor. Also ensuring markets can be understood with a new approach to regulation whereby some are more protected from the market. Apparently there's a consumer markets green paper to come which might be interesting. 

[Strokes]

1 hour ago, toddybad said:

 

Whilst some people will have gotten themselves into debt in the ways you describe, the debt charity stepchange has reported that:

 

Last year, more Britons than ever sought financial help with around 600,000 people contacting StepChange, the country’s leading debt advice charity that has a host of City luminaries on its board. It says millions of families in Britain now struggle with severe financial problems and estimates 8.8m people have turned to credit to pay for everyday household expenses over the past year. More than half of these were in employment with 41 per cent in full-time work. Stagnant wages and rising inflation are making more people vulnerable to problem debt.

Its going to be a great time to build a property portfolio in 6-18 months, loads of repos about. Lovely jublee.

[ithuriel]

Had only one across the board pay rise since 2009 and that was below 2%, what with everything else doing the annual increase my spending continues to be squeezed.

If I was not so careful with my hard earned pennies I could have been in trouble but this will certainly hit my supervisor hard as he lives beyond his means, though he is a bit of a cnut anyway

[Strokes]

2 minutes ago, ithuriel said:

Had only one across the board pay rise since 2009 and that was below 2%, what with everything else doing the annual increase my spending continues to be squeezed.

If I was not so careful with my hard earned pennies I could have been in trouble but this will certainly hit my supervisor hard as he lives beyond his means, though he is a bit of a cnut anyway

I've found the best way to get a payrise is move firms, put your notice in and tell them someone else will pay you more for the same shit. Sometimes they offer you more to stay, sometimes you need to move to get the raise.

Either way, you end up with a few extra quid.

[nnfox]

1 hour ago, Innovindil said:

Spot on. Never met a single person in the shit that didn't put themselves there. Either by borrowing too much for stuff they didn't need, or buying a house they couldn't afford to sustain with their lifestyle. 

 

And like you said, of course there are exceptions, but it's far from making a rule. 

Meh, I'm not so sure.  To get into debt in the first place is easy and usually down to poor decision making.  It is easier and quicker to get into debt than it is to get out of it.  Some people who are in debt got their through 2 or 3 very poor, quick decisions and then spend sometimes years of sensible money management to get back out. 

 

I'm not overly sympathetic to those in debt, but it is a sweeping generalisation to presume that everyone in debt leads a life of permanent economic stupidity.  It just isn't the case.

[Rogstanley]

I went out with a girl once who got herself into a fair bit of debt and can confirm the root cause was complete and utter stupidity. Cracking body on her though and dynamite in the sack so I’m not surprised some fool married her. It’s our 5th anniversary next month.

[Legend_in_blue]

Today's news isn't good news for anyone.

 

Savers will see hardly any change and mortgages go back up to what they were before the drop last year.

 

 

Mortgage lenders will adjust accordingly and when tracker deals are up at the end of their terms over the next year or so, we'll be even more out of pocket.

 

I don't get the fascination with saving in an ISA either.  Totally pointless.  Invest in foreign markets and spread your money about.  Far greater returns, although the risk is greater, but act sensibly and it can be a good option to go for.

 

[Webbo]

I have to say I don't know what ISAs are for any more. You don't pay any tax on the first £1000 of interest anyway.

[fuchsntf]

51 minutes ago, nnfox said:

Meh, I'm not so sure.  To get into debt in the first place is easy and usually down to poor decision making.  It is easier and quicker to get into debt than it is to get out of it.  Some people who are in debt got their through 2 or 3 very poor, quick decisions and then spend sometimes years of sensible money management to get back out. 

 

I'm not overly sympathetic to those in debt, but it is a sweeping generalisation to presume that everyone in debt leads a life of permanent economic stupidity.  It just isn't the case.

Not disagreeing, just using your post to bounce off.

If the UK has a large amount of house owners, arent then the majority in debt.

Some taking on too a bigger mortgage than they can afford. Society pressure...

 

Then, we have an high tech society WW, where Everyone seems too believe its the norm to afford,

Mobile-phones, high tech TVs, the  "idea"  that every home has a  PC, Laptop/tablet. Also  cars

Even the good earners, believe they should invest in things, that borders on affordability.

IMHO, all levels of our societies, are more easily tempted to allow themselves to get into debt.

Plus many taking on not single debts, but paying off on many goods/services/bank loans.

 

We reep what we sow...We like having, doing, what we see others have and do, we accept taking on debt,

to fullfill those wants...No matter what it costs.

 

 

 

[nnfox]

58 minutes ago, fuchsntf said:

Not disagreeing, just using your post to bounce off.

If the UK has a large amount of house owners, arent then the majority in debt.

Some taking on too a bigger mortgage than they can afford. Society pressure...

 

Then, we have an high tech society WW, where Everyone seems too believe its the norm to afford,

Mobile-phones, high tech TVs, the  "idea"  that every home has a  PC, Laptop/tablet. Also  cars

Even the good earners, believe they should invest in things, that borders on affordability.

IMHO, all levels of our societies, are more easily tempted to allow themselves to get into debt.

Plus many taking on not single debts, but paying off on many goods/services/bank loans.

 

We reep what we sow...We like having, doing, what we see others have and do, we accept taking on debt,

to fullfill those wants...No matter what it costs.

 

 

 

Society has definitely changed and there is a lot of debt created by the green-eyed monster that gets caught up in the wall to wall celebrity lifestyle and social "look at how perfect my life is" media.  Mobile phones are a great example of this.  I know people who go shopping for a laptop and agonise over spending £300 on something they hope to use for 3-4 years, yet will think nothing of getting the latest smartphone at a cost of £600+, to be used for two years when in fact, for the functionality that they use it for (calling, alarm clock, streaming music, using whatsapp, taking photos and using a handful of apps) would be more than catered for by a sub £200 moto g5.

 

Getting the thread back on track though, I doubt the rate rise will see anyone out on the street, but increased mortgage payments means stuff like my mate's missus not getting her nails done every month at £50 a pop.  Things like that might mean that high street spending sees a slight squeeze for a little while.  I don't think there will be a major problem though.

[Babylon]

13 hours ago, Legend_in_blue said:

Today's news isn't good news for anyone.

 

Savers will see hardly any change and mortgages go back up to what they were before the drop last year.

 

 

Mortgage lenders will adjust accordingly and when tracker deals are up at the end of their terms over the next year or so, we'll be even more out of pocket.

 

I don't get the fascination with saving in an ISA either.  Totally pointless.  Invest in foreign markets and spread your money about.  Far greater returns, although the risk is greater, but act sensibly and it can be a good option to go for.

 

It's ok for me as I don't have a mortgage and have savings so only a slight increase is better. It's better for a lot of the older generation who were relying on interest on savings to live on in their retirement. Plenty of people are better off with it

 

Agree on ISA's they because redundant a year or two ago, you get better interest in your average savings account than you do in ISA's now, and with the extra interest you can earn before getting taxed you might as well not bother.

[Rogstanley]

Stocks and shares ISA's are still worth it. Cash ISA's not so much unless you've got six figures stashed away.

[Realist Guy In The Room]

On 02/11/2017 at 16:15, Babylon said:

Unless they do forensic accounting on every person it's always going to be "estimated" and guess work as to how they got there. Would be interesting if they actually delved into a selection of cases to see where the problems lie but it's nigh on impossible.

 

I'm not going to get into a battle about it, I just think piss poor education and money management has a lot to answer for.

Absolutely.

 

There are occasions where family makeup and societal expectations dont help.

 

My sisters step son was living with his mum and step father and recently turned 17.  His step father basically said its time he manned up and got a place of his own.  He’s an apprentice plumber and pulls in about £10k a year but had fook all life skills, street smarts etc.  Now he’s in a studio flat that he can barely afford so is working the night shift at Asda too.

 

I hope i’m wrong but he just isnt going to make it.  He’ll never get ahead because of the position he’s been put in simply because he cant ‘sponge of your mum and me’ forever.

 

Schools absolutely need to start teaching kids how to survive in the real world.  Instead of teaching RE which is a completely redundant subject, Core Life skills should absolutely take its place.

[Guest]

1 hour ago, Realist Guy In The Room said:

Absolutely.

 

There are occasions where family makeup and societal expectations dont help.

 

My sisters step son was living with his mum and step father and recently turned 17.  His step father basically said its time he manned up and got a place of his own.  He’s an apprentice plumber and pulls in about £10k a year but had fook all life skills, street smarts etc.  Now he’s in a studio flat that he can barely afford so is working the night shift at Asda too.

 

I hope i’m wrong but he just isnt going to make it.  He’ll never get ahead because of the position he’s been put in simply because he cant ‘sponge of your mum and me’ forever.

 

Schools absolutely need to start teaching kids how to survive in the real world.  Instead of teaching RE which is a completely redundant subject, Core Life skills should absolutely take its place.

His step dad sounds like an absolute cnut.

[Realist Guy In The Room]

1 hour ago, toddybad said:

His step dad sounds like an absolute cnut.

He is a real piece of shit.