Another Mse Lamb To The Slaughter

[hedgefunded]

http://forums.moneysavingexpert.com/showthread.php?t=2950684

Words fail me.

[Chest Rockwell]

http://forums.moneysavingexpert.com/showthread.php?t=2950684

Words fail me.

I love this comment:

"I don't suppose the £75k was spent on anything you could sell?"

[200p]

Cannon Fodder.

I know why in the old bond films the Soviet Russians say "The West is Decadent".

They're lucky we're soft over here.

[needsleep]

I think this is a fairly common scenario. Take a mortgage. MEW. Get the credit cards. Roll credit card debt into secured debt against property. Get more credit cards. MEW again. Carry on until you hit a brick wall. Then post on mumsnet or MSE, optionally blaming everybody else but yourself.

Stupid *******

[Alan B'Stard MP]

Oh boy....seems we've still got a looong way to go yet.

[200p]

Oh no the social precipice:

we now see the future as bleak and are thinking of selling our house (outstanding mortgage of £154K) and renting in future

[Chest Rockwell]

The common one you see in such posts on MSE is:

"We think our house would prob fetch around..."

No valuations...just that they THINK their overpriced property is now overpriced even more????? All their calculations will be based on what they "think"!

Edited December 30, 2010 by Chest Rockwell

[Fairies Wear Boots]

I will guarantee they have a full SKY package, 40 inch plasma TV, multiple mobile phones, Wii and Xbox et al, cloths bought but never worn etc

They've been existing on 400 pounds a month for the last two years. No Wii's for them.

[aussieboy]

I think this is a fairly common scenario. Take a mortgage. MEW. Get the credit cards. Roll credit card debt into secured debt against property. Get more credit cards. MEW again. Carry on until you hit a brick wall. Then post on mumsnet or MSE, optionally blaming everybody else but yourself.

Stupid *******

Spot on and very accurate - I love it when preconceptions prove correct.

Except:

- there is nothing to suggest they mewed

- there is nothing to suggest they rolled credit card debt into secured debt

- there is nothing to suggest they got more credit cards

- there is nothing to suggest they rolled those cards into more secured debt

- there is nothing to suggest they mewed again

- there is nothing to suggest they are blaming anyone but themselves; they're simply looking for advice

They did however take out a mortgage to buy a home at the edges of affordability, then unwisely took out another loan and then were unfortunate to be made redundant.

[aussieboy]

They've been existing on 400 pounds a month for the last two years. No Wii's for them.

400 poinds less a month.

I know eveyone's had lots of fun projecting onto this short vignette, but perhaps people should read the post properly before frothing up.

[needsleep]

Spot on and very accurate - I love it when preconceptions prove correct.

Except:

- there is nothing to suggest they mewed

- there is nothing to suggest they rolled credit card debt into secured debt

- there is nothing to suggest they got more credit cards

- there is nothing to suggest they rolled those cards into more secured debt

- there is nothing to suggest they mewed again

- there is nothing to suggest they are blaming anyone but themselves; they're simply looking for advice

They did however take out a mortgage to buy a home at the edges of affordability, then unwisely took out another loan and then were unfortunate to be made redundant.

FFS they took a £75k loan secured against their fricken property. They simply short-circuited the carousel of credit cards and MEWs, at the very least.

[Venger]

No it's based on fact; price now = price paid plus 5% for every year owned. So if they have had it 3 years the property is worth 115% of the price paid.

Slightly closer to 116% than 115%, I think, but my maths ability is not so good.

[jfk]

I'm tempted to post a reply asking if they've got any twigs in a vase that would help with their house "valuation"

[SarahBell]

Bankruptcy needs to be changed to ensure as much is reclaimed as possible and they can never have debt again

[Executive Sadman]

This seems typical

We also have credit card debts which I don't even want to think about at present.

[Tired of Waiting]

http://forums.moneysavingexpert.com/showthread.php?t=2950684

Words fail me.

That OP got this worrying reply there.

My advice would be very simple;

Stop paying the mortgage and secured loan payments and use the money saved to put down a deposit on a rented property. Use any available credit left on your cards buying food for your family.

Move house and then go bankrupt without warning anyone. The Official Receiver will deal with all your debts and creditors. After a year (at most) you will be entirely debt-free and can concentrate on living your lives within your means.

Visit the excellent bankruptcy forum on this site for more help.

Is bankruptcy this easy? And so light on consequences?? I do hope not! If so what is the point of being sensible?!

.

Edited December 30, 2010 by Tired of Waiting

[Redcellar]

Bankruptcy needs to be changed to ensure as much is reclaimed as possible and they can never have debt again

I've got to agree with you.

Re original article. You have to ask what the £75K loan was for. That's a lot of money.

Seems the responses are pretty much along the lines of "your fooked". There was even one fishing for compensation for missold Payment Protection Insurance, which is an average of £2K. Hardly going to pull them out of the mire.

[thecrashingisles]

This seems typical

We also have credit card debts which I don't even want to think about at present.

I suspect a lot of HPCers could say the same thing in reverse - "We also have other savings which I don't even want to think about at present... (Not until I can spend them on a property without providing someone with a lifetime's unearned income.)

[erranta]

I'm tempted to post a reply asking if they've got any twigs in a vase that would help with their house "valuation"

You must be 'bewitched'

Directed by Nora Ephron

Edited December 30, 2010 by erranta

[Redcellar]

That OP got this worrying reply there.

Is bankruptcy this easy? And so light on consequences?? I do hope not! If so what is the point of being sensible?!

.

No, they are in a dream world. Your credit record is trashed and you don't get the slate cleaned for many many years (5 to 7 I believe) and then of course you have to rebuild it anyway.

Plus you'll be left with nothing. Hardly a good situation for a couple with kids.

[Number79]

The only thing surprising me right now is that no one has provided them a link to this thread.

I would have had I not already been banned from Money Sense Extict, several times

[Blod]

These kinds of posts about debt are being ignored by the MSM cause they just don't want to spook the herd. Instead they should be main stream so that people learn financial sense.

[dances with sheeple]

That OP got this worrying reply there.

Is bankruptcy this easy? And so light on consequences?? I do hope not! If so what is the point of being sensible?!

.

I think that is the solution most likely to hurt the bankers? (if enough people take it) It`s what I would certainly do in their shoes, at this point. Too much was loaned out,sheeple will soon tell the lenders where to go I think.

[Tiger Woods?]

Can someone explain to me what the phrase "We stopped paying the ppp in July" means? I thought ppp was pre-payment penalty, so what were they paying that they cancelled?

Anyhow, borrowed 75k?! Other than a business, what could they have reasonabley spent that on in a couple of years?

[RDW]

what could they have reasonabley spent that on in a couple of years?

Pride, probably