grizzly bear

It didn't come across like this, more he wanted a new ipod and he had credit available. He was surprised when they added it up and told him how much and he seemed genuinely surprised when he was told he could never pay it back.

I just think that they are not interested in keeping in artifically inflated

they got an auctioneer to value the stuff in his house (including cat(!) and car) and it came to less than £10k (due to it being 2nd hand).

The mad thing is that he only spent it over about 3 years They gave a breakdown, something like - £2k per annum booze, £2k per annum magazines and maps(!), £8k x 2 on a mercedes (he wrote the first one off with only 3rd P insurance), £4k on garden, £10k on gadgets (including ipods, camera, TV, DVD, games console), £5k on furniture etc etc. They said he'd be debt free within 5 years. If he paid it back would have taken whole lifetime of living totally frugally. He didn't know the meaning of budgeting, looked angry when told he couldn't afford to spend £2k a year on beer or magazines.

My MIL has one and loves using it, mainly to go shopping in the west end. She has never worked since her had kids, but they are now all grown up. My FIL earns over £100k. He is still working. They both get their winter fuel allowance too. IMO should only be given to pensioners who can't afford to run a car.

I used to work for a big bank (2001-2007) - i visited their credit card operations in northampton. bloke there explained they had models of how much credit they could give people without tipping them over the edge. he explained that they made the most profits from the ones who just didn't go over the edge but were close. they then securitised all the old balances...... If someone earns say £25k and has living expenses, hard to see that he could ever have more than £500 spare a month. He should never have been allowed to have credit card debt of more than £6k. But he basically managed to spend that on each of 10 cards, and then the rest of the £100k was interest and charges.

no he spend someone else's money. there should be a limit on the amount of credit card debt that is allowed.

This guy had a job. He earned £25k as a paint sprayer. The point was he was spending like no tomorrow and they pointed out, just to service the minimum payments (as well as mortgage and other costs) he'd need a salary of over £120k.

Perhaps jail a too draconian, but yes I agree in prinicipal that his punishment should be more than selling his how and being able to write off his debts. Perhaps community service or similar. As I said he had bought every mod con for his house and had £300 of beer in the fridge. He spend £4k on his tiny garden. And had mercedes. Plus pedigree cat that cost £££. TBH I would feel more sympathy for someone who had used the money for food, shelter etc. But no the money was used all on luxuries he simply couldn't afford. Surely someone earning £25k shouldn't be allowed to borrow more than around £10k in total on credit cards. Even a £10k debt would have been hard for him to ever repay. If the banks can't self regulate then there needs to be limits on the amount of credit card debt someone can take on. I would have thought that 0.25x gross salary would be about right, esp as this can escalate quickly if not settled.

I have just watched "Beat the Bailiffs" and I am gobsmacked. Bloke earning £25k as paint sprayer managed to get £100k into debt on credit cards, mainly funding extravagant lifestyle - eg buying all latest gadgets, mac, gas BBQ, pedigree cat, leather sofas, mercedes, even spending £2k a year on magazines and £2k a year on booze. And lots of interest and late payment charges The presenter said no real choice but to sell house only £15k equity and enter into IVA with creditors. Bloke said, not my fault, credit card companies have insurance and they shouldn't have given me the money They pointed out even to pay the monthly minimum payment he'd have to have salary of over £120k How is this possible - he had 10 credit cards :angry:

So is that it then, no HPC?? We sold in Sept 08 and should have bought, we had the option to, we just thought they wanted too much. Now similar houses would sell for 30% more. We have a great rented house, good landlord who will never chuck us out and could stay for a while. But we regret not buying. Feeling sad too.

£400 a week is £20k per annum. To afford £20k rent per annum you'd have to be earning around £60k. The cap is still too high as someone earning say £45k would struggle to afford this rent AND would not get any help from the government in housing benefit. Please all write to the housing minister to point this out. Does anyone know how much you need to earn before you cease to qualify for housing benefit?

I think previously 40% could be tapered down to 24%.

Much more practical suggestion would be to level capital gains tax on UK non residents if they make a gain on any UK property (like Australia) and clam down on stamp duty avoidance scams but having houses owned by overseas companies. Your suggestion wouldn't work as you can become R for one year then buy and then change your status. Even if you come up with a good idea what are you going to do with it?????

Would actually be a great idea for retired (ie older) council tenants to free up housing here. Not sure it a great idea for those of working age.

If someone on housing benefit has three kids and lives in Central London, they can get huge amount to pay to rent the right sized house. If someone with a job has three kids they have to moved out of London. You are right it should be national and there should be a cap - based on the level of earnings someone gets and is no longer entitled to any benefits - set to encourage people to move to cheaper areas.

This is the same as the mansion tax that vince cable proposed....

http://news.aol.co.uk/house-prices-rise-after-hips-axed/article/20100614193033535936518 Would have thought that lots more houses on the market would push prices down not up - can someone explain - unless they are talking about asking prices?

Yes they will have benefitted from in when bringing up their children in the 1970s and 1980s.

Good UK graduates get £25k - £40k. I got £17k in 1995 (accountancy firm) with a 2:1 from Manchester University, and I got paid overtime (not first 30 hours a quarter though). My partner graduated two years later in 1997 and started on £25k (investment bank back office)

In first family there will be childcare costs. In 2nd family there will not be....

I am reading Vince Cable's book - first chapter is about house price bubble. He gets it.

do you have kids? clearly someone single could afford a much high % of their income on housing that those with children. 5x income would be fine for a well paid single professional, but 5x joint income would not be good for a couple with childcare and other costs relating to the children.

I think what happens is not enough people can afford to or want to buy dwellings at there current prices (ratio) anymore as they just can't borrow the money, and it would e cheaper to rent instead. Those who actually want to sell to the fewer sellers who can afford are forced to reduce the prices to appeal to the fewer buyers, and slowly prices come down. At the same time some of the props that are keeping the market up gradually fall away - eg no more money for shared ownership, gov paying mortgages, banks have less cash, people loose jobs, mortgage rates rise due to lack of funds. eg both my SILs trying to sell in NW London. Both have reduced prices, neither have sold yet, but neither wants to reduce their price further just yet. I guess eventually they'll get a low ball offer and have to decide what to do? Or maybe they'll be lucky and someone will pay the asking price. My brother is looking to buy similar to what SIL is selling but he can't afford £535k for tiny 3 bed semi but if it was priced at the 2004 price they paid he would be able to afford it ONLY if his flat didn't fall by the same % !!!!

My parents lived in the same house for 40 years in a quiet cul de sac. After about 25 years someone bought the house next door, immediately build a new house in the garden, and then sold both houses. The person who make the profit moved on to find the next house with big garden, my parents left with unattractive house extra traffic oppsosite them with no compensation. I agree with this policy as long as they do find more suitable land to build new houses on....