Pay off your debts
Discussion
BoRED S2upid said:
Is the latest idea to come from our leader yet he is borrowing more on behalf of the country than a crack addict!
Also if we all paid off all our credit wouldn't the banks suffer therefore the economy suffer? excuse my very basic economics there.
If our debts are cleared, we have more disposable income at a later date, more spending power.Also if we all paid off all our credit wouldn't the banks suffer therefore the economy suffer? excuse my very basic economics there.
Given the situation the Eurozone is in, if we knuckle down and clear debts whilst they're in the s
t, it won't affect us as badly not spending now will it? Clearing the debts, then we're in a better position at the end of it than them?I'm not that knowledgeable on this stuff either, but that's my thought.
Justin King of Sainsbury's said on Radio 4 this morning that David Cameron is only catching up with the game when he recommended people to pay off their credit card debts. Later, the BBC's newsreader Cathy Klugston (sp) said that King said Cameron was catching up when he talks about paying down the deficit. Not quite the same thing - typical BBC spin...
Robert Peston must have squirmed in Yesterday in Parliament when his old man, Lord Peston, sounded off in the Lords about how the country's financial problems are "...all due to the Tory's actions..."
"Dad! Sit down and shut up!"
Robert Peston must have squirmed in Yesterday in Parliament when his old man, Lord Peston, sounded off in the Lords about how the country's financial problems are "...all due to the Tory's actions..."
"Dad! Sit down and shut up!"
BoRED S2upid said:
Also if we all paid off all our credit wouldn't the banks suffer therefore the economy suffer? excuse my very basic economics there.
No, it depends what you do with the borrowed money. The problems arise when money is borrowed and then wasted.- Carpenter can make one wooden chair each day from wood he collects in the forest at no cost. He works a 5 day week and sells the chairs for £5. That's £25 he's earning. It costs him £23 a week to buy food, tools etc so his profit is £2 a week.
- Carpenter sees a new improved tool he could buy for £100 and which would enable him to make 2 chairs each day. He has no savings. It will take him a year to save up enough money to buy the tool.
- Carpenter borrows £100 and buys the tool straight away and starts selling 2 chairs each day. Interest cost is very high at £2 a week. However, he's earning an extra £25 a week and his "profit" has jumped from £2 a week to £25 a week. He's able to pay off the £100 loan in a month.
- Then he's away and laughing! his profits have risen from £2 a week to £27 a week!!
I really dont see how scaring the consumer even more by telling them to pay off debt as a priority that earns our banks billions in intrest payments is going to help save the recovery. You can only pay off debt by either not saving or not spending.
You dont withdraw nutrients from a patient when he's coming round from a deep coma and expect him to gain strength. That would be murder....
You dont withdraw nutrients from a patient when he's coming round from a deep coma and expect him to gain strength. That would be murder....
Corsair7 said:
I really dont see how scaring the consumer even more by telling them to pay off debt as a priority that earns our banks billions in intrest payments is going to help save the recovery. You can only pay off debt by either not saving or not spending.
The banks make money, but across the nation people are spending more of their income on interest payments to the banks, rather then spending it on the high street, so although the tax rake may be similar, it's all going in one place. Shareholders should be happy though right, oh no, wait....anonymous said:
[redacted]
Is that where the over excessive government borrowing goes to? I always wondered why we were borrowing such massive sums and no matter what the torys do it doesn't seem to change from Labour days. Pretty much between a rock and a hard place with that one then. No growth, no jobs, no jobs no reduction in people on benefits therefore no reduction in the £3bn a week borrowing.
BoRED S2upid said:
Is that where the over excessive government borrowing goes to? I always wondered why we were borrowing such massive sums and no matter what the torys do it doesn't seem to change from Labour days.
Pretty much between a rock and a hard place with that one then. No growth, no jobs, no jobs no reduction in people on benefits therefore no reduction in the £3bn a week borrowing.
Bribe money - keeps half the population in check - almost like an extortion racket.Pretty much between a rock and a hard place with that one then. No growth, no jobs, no jobs no reduction in people on benefits therefore no reduction in the £3bn a week borrowing.
'Always live within your means'.
My dear old Nana used to say. If we spent less than we earned, on both a personal and a national level, we wouldn't be in this mess.
Remember a few years ago? People's houses gaining 20/30/40/50% in value? Mmmmmm, let me see, should I sell, make a bit of money and pay down some/all of the mortgage, or should I re-mortgage and spend all that lovely cash on new German cars (in white, natch), 50" tellies, iPOODs and Carribean holidays?
That is where, thanks to the fickleness and sheer stupidity of the masses, we dropped the ball.
My dear old Nana used to say. If we spent less than we earned, on both a personal and a national level, we wouldn't be in this mess.
Remember a few years ago? People's houses gaining 20/30/40/50% in value? Mmmmmm, let me see, should I sell, make a bit of money and pay down some/all of the mortgage, or should I re-mortgage and spend all that lovely cash on new German cars (in white, natch), 50" tellies, iPOODs and Carribean holidays?
That is where, thanks to the fickleness and sheer stupidity of the masses, we dropped the ball.
dirty boy said:
Corsair7 said:
I really dont see how scaring the consumer even more by telling them to pay off debt as a priority that earns our banks billions in intrest payments is going to help save the recovery. You can only pay off debt by either not saving or not spending.
The banks make money, but across the nation people are spending more of their income on interest payments to the banks, rather then spending it on the high street, so although the tax rake may be similar, it's all going in one place. Shareholders should be happy though right, oh no, wait....motco said:
Robert Peston must have squirmed in Yesterday in Parliament when his old man, Lord Peston, sounded off in the Lords about how the country's financial problems are "...all due to the Tory's actions..."
"Dad! Sit down and shut up!"
He won't have squirmed, but nodded. He's a massive leftie and he hates cars."Dad! Sit down and shut up!"
He's also hugely frustrated because he made his name in 2008 on the back of stories leaked to him directly by Labour. He gets nothing from the Tories.
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