Monday, Aug 27, 2007
Sensible but Depressing Article
This is North Scotland: Falling in to Serious Debt can Happen to Anyone
Middle class can also fall in to serious dept
Posted by ian @ 04:59 PM (382 views) Add Comment
3 Comments
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1. enuii said...
The best and most often overlooked thing by 6x and over multiple borrowers summed up in one sentence:-
'Equity is not a "liquid" asset and cannot be relied upon at short notice.'
Says it all really.
2. Ah-so said...
Whoever said that debt was an issue for the working classes alone? It is those on good incomes that have the ability to borrow more and have to to get on the housing ladder etc.
The only thing that is likely to weigh in their favour is that middle class people are more likely to be able to resist immediate consumption in favour of tomorow's benefit. A habit of studying at school/uni for their future, resisting fatty foods (v. applicable in Scotland) for one's health etc is something that I would intuitively think would also be transferred over to financial matters.
3. European Bear said...
Yes, the sub prime issue I feel is completely under estimated. People who have jobs,but have borrowed too much are sub prime too. A rise in interest rates, food prices and utility bills etc and they cannot pay back their 5X, 6X or 10X interest only mortgage. In my street alone there are about 5 middle class professional families in this situation. Cars have recently been replaced with older cheaper ones whilst others are 'too busy' to go on holiday. Amongst my group of friends, who are highly educated and should be numerate, some have taken out mega mortgages and they too are now feeling the heat. Why did they do this? Their reasoning was simple: everyone else is doing it, it must be OK!