Thursday, Feb 01, 2007
What will become of the 'Want it all' generation?
Daily Mail: 'Live for today' Britons plunging into debt
Britain's ‘live for today’ attitude toward debt is plunging an ever-growing number of families into financial ruin, the City’s watchdog warned yesterday. The Financial Services Authority (FSA) issued a stark warning that borrowers have become profoundly complacent about the size of the debt they are carrying.
Posted by uncle chris @ 11:27 AM (135 views) Add Comment
16 Comments
- If you do not have an admin password leave the password field blank.
- If you would like to request a password allowing you to add comments and blog news articles without needing each one approved manually, send an e-mail to the webmaster.
- Your email address is required so we can verify that the comment is genuine. It will not be posted anywhere on the site, will be stored confidentially by us and never given out to any third party.
- Please note that any viewpoints published here as comments are user's views and not the views of HousePriceCrash.co.uk.
- Please adhere to the Guidelines
1. sovietuk said...
"Accountants KPMG forecast up to 150,000 individuals will become insolvent in 2007"
How many were there in 2006, about a 100,000? How many will there be in 2008 ? 200,000? How many in 2009?
Just a minute added up year on year isn't this becoming a significant percentage of the uk population and a major social problem? What's the answer ? - I know build supercasinos so more people get into more debt.
.
2. Davros said...
It's strange, on the one hand there are reports of 2m people struggling to make ends meet and yet the housing market pundits are constantly banging on about 'key fundamentals' supporting the housing market.
For me, the two are at odds.
3. george monsoon said...
This is a significant portion of the population.
Does anyone else here know people in their neighbourhood who are always buying new flat screen HD tv's , upgrading their car every year, going on two or three holidays abroad, new mobile phones every couple of months etc.. etc... These are the people that are living beyond their means and escaping most of the debt through IVA's Probably the same whitless individuals who are proping up the housing market by buying anything at any price cos "it's only money after all"
I have a 10 year old car, an old tv that is superior in picture quality than any HD tv on the market. My ancient Nokia mobile works fine. I can call people and talk to them, and they can call me. I cannot afford to replace these items with new ones, because, a) why replace something that works fine and b) I do not have enough disposable income to do this.
Take my 5 point test and see how you score?
1. a new mobile phone advert is shown on TV that is being pushed as "the next generation" in mobile technology.
Do you..
a) Rush out and slap the 385 quid tag onto your credit card, because you must have it NOW...!!
b) Study the pro's and con's of the new phone and make an educated decision based on your requirements.
c) Dismiss the advert and carry on messing up your sudoku puzzle, you already have a phone that works fine after all.
2. You are looking to buy your first house. Its the one that your partner insists is "the home of their dreams" and its a snip at just 220 thousand pounds. You sold one of your kidneys and did a bit of illegal tobbacco running to stump up the 10% deposit..
Do you...
a) lie about your earnings to tie the mortgage deal, then go straight to Sainsbury's for the 300 quid weekly shop of sugar and salt.
b) Try to cut a deal with the seller because you think you can shave a few grand off the asking price, after all stone cladding costs money to remove!
c) say "in your dreams" to your partner and give the mortgage lender the finger before leaving.
3. Its September again, so time to get those presents in for Christmas before its too late..
Do you...
a) go straight to your local retail park and start shopping..
b) leave it a bit longer, Christmas is "months away", but buy the odd present here and there, if its the right price..
c) carry on reading your book out in the back yard while the landlord argues with the plumber about the new boiler bill.
4. Now its December the 26th, time to start thinking about that August holiday in the sun..
Do you...
a) pull out the plastic and get it sorted. Two weeks in the Maldives, all inclusive..
b) leave it a couple of months and start looking for bargains in Greece..
c) leave it until August and test the tent out in the garden so you can remember how to put it up, when its raining and blowing a gale.
5. You just noticed that your air freshner has dried up on your dash..
do you..
a) go straight to the nearest mainstream dealer and part ex your car for the latest model.
b) go out and buy a new air freshner, but put a note in your diary to get the car serviced before winter.
c) spray the air freshner with deodorant spray until it goes sticky and bang it back on the dash.. another couple of months in it yet..
So, how did you do?
Mostly "a"s - spend, spend spend, you are obviously a person of standards and you will buy what it takes to maintain those standards, regardles of that little detail of "its not your money". but hey! who cares when you can wipe 40% of your debt away in an instant by the magic of IVA.
Mostly "b"s - you are a sensible person who probably already has a house of their own and the mortgage is either payed or nominal. You are probably over 50 and you wear socks with your slippers. Your garden is perfectly manicured and your sex life, non existant. You have no debt, and a good pension for when you retire.
Mostly "c"s Oh- sorry I was just looking in the mirror. Yep thats me, no money, but hey! at least Im getting it several times a week, even if my car stinks of Linx.
4. george monsoon said...
artificial post to put the discussion in the flames bracket and get you punters to take the test above..
5. george monsoon said...
artificial post to put the discussion in the flames bracket and get you punters to take the test above..
6. george monsoon said...
artificial post to put the discussion in the flames bracket and get you punters to take the test above..
7. george monsoon said...
artificial post to put the discussion in the flames bracket and get you punters to take the test above..
8. george monsoon said...
artificial post to put the discussion in the flames bracket and get you punters to take the test above..
9. george monsoon said...
artificial post to put the discussion in the flames bracket and get you punters to take the test above..
10. george monsoon said...
artificial post to put the discussion in the flames bracket and get you punters to take the test above..
11. dohousescrashinthewoods said...
George, here's a corker, scroll through the article and there's a "take debt test", similar to yours.
So I thought I would take the test.
(note: My wife and I have almost finished clearing our debts and I am known as Mervyn around the house for steering our "economic policy" so that we live within our means.)
Answer: "you have a problem and should seek help"!
For added entertainment, review your answers and see them marked as "correct" and "incorrect". Perhaps this counts as that Government financial education - telling people it is "incorrect" to relieve debt depression by going shopping.
12. george monsoon said...
I answered the "do you argue about money" with a yes and "would you need to borrow money for an emergency" ... well yes, probably if it meant buying a new car or something like that...
Thats more of a crock of sh.. than my survey.
Your score was 10 out of a possible 12
You have a problem and should take stock of where you are heading.
13. millard said...
While I appreciate the intellectual arguments for the economy, HPI etc on this site, it can get a bit depressing at times, "at least I'm getting it several times a week, even if my car stinks of Linx." top comment, last time it was due to you lamping some idiot!!!
14. bidin'matime said...
George. I guess I'm mainly 'b's - you're right about being over 50 (just) and wearing socks with my slippers (always have done - I don’t like cold ankles - at least I don’t wear them with sandals..), but don't get too blinkered about the rest - being over 50 and financially secure doesn’t require you to manicure your garden and it certainly doesn't involve giving up sex! Indeed, being left in peace when the kids leave home is a real boon - never been better. So look forward to your fifties – it’s a great age to be!
15. george monsoon said...
I turn 40 on Saturday, so Im not too far behind. Unfortunately a sticky divorce several years ago means I now have no valuable assets and I can't aford a pension, so Im basically screwed unless I engineer a minor miracle. Oh well I have a nice guitar which gets played in public now and again, and a lot of good friends, some on here.
I don't understand the financial garb that is pandered on this site, and I do have trouble quantifying some of the facts and figures. What you get from me, hopefully is a more grounded opinion of how things are from the common man.
16. little professor said...
Great post, george! I got mostly 'b's - but I'm not 50 (27, actually, and I don't own a pair of slippers). Just someone who enjoys life but was brought up to live within my means. No debt, £30,000+savings, but I see people all around me on benefits or £20k a year salaries who live much more lavishly than me.
But hey, you can write it all off against an IVA in a couple of years, so why be boring and sensible?
Read the "Debt-Free Wannabe" forum on MSE - it's amazing how many of these feckers have fully Sky packages, expensive mobile phone contracts, luxury gym memberships, huge grocery bills each week etc. and they wonder why they are in so much trouble.