Other people's facepalm financial management
Discussion
Hardly a week goes by without me hearing about some insane personal financial decision. One neighbour bought a second house, had to scrape the money together and used their credit card to cover the deposit. Another lost his job, didn't get paid for the previous 5 months of work, was so hard up he couldn't even make it out for a drink and then a couple of weeks later bought a BMW Z4 (not new bit still...) WTF is wrong with people?
Would the UK economy survive without the level of personal debt people are encouraged to take out?
There seems to be a culture of "spend good, save bad" encouraged by the government. An example of this is when Osborne allowed people to cash in their pension fund so as to generate growth in the economy, albeit temporary.
There seems to be a culture of "spend good, save bad" encouraged by the government. An example of this is when Osborne allowed people to cash in their pension fund so as to generate growth in the economy, albeit temporary.
uknick said:
An example of this is when Osborne allowed people to cash in their pension fund so as to generate growth in the economy, albeit temporary.
Agreed. What was he even thinking with that one?There's a real problem with people not saving anywhere near enough for their retirements (so future govts will have to pick up the tab). I know, let them blow some of what little they do have on a car and a holiday.
Bonkers.
As a natural saver it really bugs me that all incentives are biased towards the feckless (e.g. bailouts, no repossessions for political reasons). Is it the absence of moral hazard (or is it the presence of it, not sure which way around!)
AndStilliRise said:
I know a guy who spends £60+ on SKY but regularly misses his rent payments. In the same guise i know a women who lives in a council house and spends over £120 on SKY. Priorities I guess!
Sitting in and watching TV for £2 a day is still a cheap form of entertainment, when compared with playing golf or going to the cinema regularly or whatever 
simoid said:
Sitting in and watching TV for £2 a day is still a cheap form of entertainment, when compared with playing golf or going to the cinema regularly or whatever
Maybe, but watching Freesat is a hell of a lot cheaper 
If I was this bloke's landlord, I'd be asking whether he'd prefer watching his Sky from a caravan or a tent & release the property to someone who pays their way on time. Food, shelter & warmth is at the foundation of the hierarchy of needs.ikarl said:
Hoofy said:
That's nothing, I just borrowed £15,000 to go on a Buddhism course to impress a lady I'm trying to woo who is into spirituality.
(Guess it's only funny if you have a vague understanding what Buddhism is about. )
Don't get to attached to her!(Guess it's only funny if you have a vague understanding what Buddhism is about.
)Northbloke said:
As a natural saver it really bugs me that all incentives are biased towards the feckless (e.g. bailouts, no repossessions for political reasons). Is it the absence of moral hazard (or is it the presence of it, not sure which way around!)
+1 It's maddening from a moral viewpoint that being debt is a better scenario in some ways. The housing market in particular makes me despair - the continuing avalanche of ever more elaborate ways of getting more people in more debt rather than addressing the real problem, the expanding gap between wages and house prices. Not much doing with the former, so fix the latter - but that would cause so much pain to so many 'debters', that any 'savers' lose out (I reserve the right to wield my brush of tar as generically as I choose).Hoofy said:
interest only buy to let mortgage
and the "landlords" who are renting a property for less than the repayments! Some people really don't have a clue. Don't forget the good old 110% mortgages which meant many people are now in negative equity on their house as well as the car bought on finance.
Behemoth said:
Maybe, but watching Freesat is a hell of a lot cheaper If I was this bloke's landlord, I'd be asking whether he'd prefer watching his Sky from a caravan or a tent & release the property to someone who pays their way on time. Food, shelter & warmth is at the foundation of the hierarchy of needs.
Not if you're stupid. Going through the rubbish of the tenant I evicted for not paying the rent I found details of a nice holiday she'd had and receipt for a new smartphone. No wonder she said she was 'penniless', the silly cow had spent it all. Don't give credit to stupid people, they will spend it and want more. If I was this bloke's landlord, I'd be asking whether he'd prefer watching his Sky from a caravan or a tent & release the property to someone who pays their way on time. Food, shelter & warmth is at the foundation of the hierarchy of needs.Simpo Two said:
Not if you're stupid. Going through the rubbish of the tenant I evicted for not paying the rent I found details of a nice holiday she'd had and receipt for a new smartphone. No wonder she said she was 'penniless', the silly cow had spent it all. Don't give credit to stupid people, they will spend it and want more.
Indeed. I think these days a smartphone contract sits there alongside food, shelter & warmth. You have to set out the rules and stick to them & good for you that you followed through. If have late payers, I chase daily by phone, SMS & email at the beginning. Otherwise it's a slippery slope of excuses.BoRED S2upid said:
Hoofy said:
interest only buy to let mortgage
and the "landlords" who are renting a property for less than the repayments! Some people really don't have a clue. Don't forget the good old 110% mortgages which meant many people are now in negative equity on their house as well as the car bought on finance.
Couple I know, she's a compulsive shopper, buys stuff online every day, and goes out at weekends, has hundreds of items of clothing still with the labels on. He's a fairly heavy and unsuccessful gambler plus he has a thing about never doing anything on the cheap. Everything he buys, clothes, shoes, electronics, has to be top of the range. He also seems to love to shop.
Anyway, close to financial meltdown, massive mortgage, credit cards maxed out, hundreds of thousands in debt. They decided they really needed to sit down and discuss their predicament instead of burying their heads in the sand. So they decided to have a weekend going thru their finances. Got grandparents to have kids got all their paperwork together and.......put it in their suitcase and jetted off to New York for a long weekend to assess their problems!!!
Anyway, close to financial meltdown, massive mortgage, credit cards maxed out, hundreds of thousands in debt. They decided they really needed to sit down and discuss their predicament instead of burying their heads in the sand. So they decided to have a weekend going thru their finances. Got grandparents to have kids got all their paperwork together and.......put it in their suitcase and jetted off to New York for a long weekend to assess their problems!!!
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