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Hi, I go on a forum which deals with everything in life (mine is due to baby and pregnancy) but I often read the Money Matters forum with great interest. I came across these two posts tonight and are amazed at the amount of money people owe, and at only 21 & 23 years of age. And OMG the reply posting is ridiculous, took out a loan to fork out for a deposit on a place. WHAT???????

Initial Post

"I often have a read through these before for advice and tips. But now enough is enough and I have to get myself sorted.

im 21 years old and have 3 credit cards and two rather large loans. At the moment I can just about make the payments to all creditors. But i am struggling. I have about 38k worth of debt, stupid i know, and its all my own fault. I have tried two companies to obtain a loan to consilidate my loans as my credit card repayments are the ones that im stuggling to pay. I was rejected due to over commitment. I don't know what else I can do.

I have been on the CCCS web site. but im worried becasue i still live at home, and i don't want this to effect my parents credit rating in anyway. Im more that happy never to obtain credit again. Any advice is appriacaited."

Reply

"Hi there,

I totally know how you feel. Im in the same boat as you but with about £43000 of debt plus a mortgage to boot.

I live with my fella so the debt is shared but we still are forking out over £1300 a month just to keep the house above our heads and pay the bills, food and other bits and bobs are on top of this and we only earn about £2000 a month jointly.

The debt started when we moved out and got our house, it was a spare of the moment thing so we had no savings so took out a loan to pay the deposit and my fella's credit card off. Then we got a bigger loan to consolidate the exsting loan and the new credit card bill, and so on and now we are so skint and up to our eye balls in debt.

Im only 23 and i really cannot see a way out, i dont want to lose my house so i keep paying everything on time but we are left with nothing for ourselves, and we dont have a life.

Im sorting out a cash only budget and reducing other payments by changing insurance companies, getting rid of my contract phone and im going to stop paying into my pension to save a few quid so hopefully this will free up a bit of money. I ve also chopped up my credit card today.

Ive lost my confidence and ive put on loads of weight because all i do is sit on my ass watching telly and eating crap because i cannot afford to do any thing else. ive lost all my friends as i cannot afford to do anything with them, ive even started to loose contact with my mum because of the same reasons.

Im too proud to ask for help but if i was you i would talk to your parents and explain the situation, they are bound to help you."

Makes my bit of debt look like a drop in the ocean.

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43 grand!?! What the fook is it about these people!?!?!

I have NO sympathy for her: stupid fat mare. She says she has lost her self-respect? She doesn't deserve any self respect. Greed, greed, greed, me, me, me, stuff, stuff, stuff, now, now, now...and then moan, moan, moan when they (belatedly) realise what they have done....TO THEMSELVES. And then, perhaps the most disgusting bit, feeling sorry for themselves.

This really p1sses me off. :angry:

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but the BOE just cut interest rates the economy is saved... oh credit cards, forgot about that one ey.

Its all like a shakespearian play unfolding, quite predictable, very boring and lots of over zealous wording.

Im a young un so i wouldnt know.. is it always like this when a recession is just around the corner? Do you get the same sort of stupid behavour before hand?

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I'm not so sure that a lack of education and being media-fed a load of crap is someones "fault".

I'm sure that there are some gormless, greedy people who have managed to pile up a load of debts and mortgage the next 10 years of their lives. But then there are others who, through a lack of education, confidence or basic self-control have found themselves in a difficult position.

Sneering is not a solution - in fact its part of the problem.

People with this attitude are the same as those who milked the gullible, vunerable and uneducated in the first place.

The old adage that "you treat others as you see yourself" might be one to take on board.

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43 grand!?! What the fook is it about these people!?!?!

I have NO sympathy for her: stupid fat mare. She says she has lost her self-respect? She doesn't deserve any self respect. Greed, greed, greed, me, me, me, stuff, stuff, stuff, now, now, now...and then moan, moan, moan when they (belatedly) realise what they have done....TO THEMSELVES. And then, perhaps the most disgusting bit, feeling sorry for themselves.

This really p1sses me off. :angry:

Unfortunately it seems to be a symptom of today that many people cannot act responsibly, and worse, cannot then take responsibility for how they act.

They will blame this on easy credit and glossy mags making me buy all this tat I don't really NEED.

It's simple, if you want the Beckham lifestyle, marry him or get practising on the footie field.

It is sad that these people measure success by how superficial they can be.

I too have little sympathy.

NDL

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43K is twice the average gross salary, and they owe that much on CC at 20% APR

That is the scary part :o

Equally scary is that financial infants like this could ever be approved for

a mortgage, and yet these are the buffoons who have made it so expensive

for those who live within their means.

Suspect (actually hope) short sharp lesson in life is about to meet these two

ABB

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I was in their position when i was in my mid 20's -- not because of my spending but my ***@@@ 1st husband. He was Mr Champagne Charlie and got us into £30k of debt (this was in the early 90's) and this did not include a house purchase!

Despite the fact that he had a good job and i an ok one we eventually had to move in with his parents. Humiliating or what?

But i can now be Lady Smug of Smugville. Having left him, i got a degree, now have a very good job and have paid off all student debt. :D:D:D

HA! Patiently i await the coming CRASH. Putting money away each month for our deposit. Sitting in a nice flat, in a nice part of town, planning our next 3 holidays and enjoying trips to the theatre, gym and out with friends for meals.

Those years of study have paid off and i now am enjoying life with a good man.

Gloating over.

For now.....

More to come in the next few months I hope.

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I'm not so sure that a lack of education and being media-fed a load of crap is someones "fault".

I'm sure that there are some gormless, greedy people who have managed to pile up a load of debts and mortgage the next 10 years of their lives. But then there are others who, through a lack of education, confidence or basic self-control have found themselves in a difficult position.

Sneering is not a solution - in fact its part of the problem.

People with this attitude are the same as those who milked the gullible, vunerable and uneducated in the first place.

The old adage that "you treat others as you see yourself" might be one to take on board.

I feel you have a point needle and sneering isn't nice.

However, many of these people have been spoon fed and picked up every time they have fallen down in their lives. This does not teach you how to survive as somebody will always deal with your problem.

Sooner or later these people hit the real world. Just imagine what will happen when problem poser above goes to mommy and daddy as the replier suggests. I feel this is one time they won't get help.

Maybe they'll muddle through, maybe they'll go to the wall. What's for sure is they will have learned a damn good lesson.

NDL

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These debt laden folks teetering on the edge of disaster are acceptable "collateral damage" in this "new paradigm" economy.

So long as a majority continue to just scrape by the edifice can stand.

Just don't survey the foundations.

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These debt laden folks teetering on the edge of disaster are acceptable "collateral damage" in this "new paradigm" economy.

So long as a majority continue to just scrape by the edifice can stand.

Just don't survey the foundations.

But the problem is that the paper profits go all the way up the rungs of the property ladder.

And it is all based on people like this.

What happens next....:(

ABB

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But the problem is that the paper profits go all the way up the rungs of the property ladder.

And it is all based on people like this.

What happens next....:(

ABB

What happens next is a credit squeeze and a recession if we are lucky, a slump if we are not.

I think it is to do with education. This should be part of the Citizenship stuff in schools. Someone should teach kids that credit cards should only be used to take advantage of the protection they offer - that being in debt is a mugs game - that borrowing on credit cards is just completely stupid - I don't think anyone tells youngsters this stuff. Do they?

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Guest Bart of Darkness
I'm not so sure that a lack of education and being media-fed a load of crap is someones "fault".

It's always someone else's fault. Didn't you know that? If you don't learn anything in school, well that's your parent's fault, or your teacher's, or the local education authority.

Believing everything the media throw at you, well that's they media's fault (they pin you down and force you to watch/read their stuff you know). Credit card companies force people to sign up for their cards as well. Not only that but they force them to use them.

And there's always a scapegoat. (Personal responsibility, what's that?) Sue someone, anyone. No win, no fee. Get compensation for "mental stress" or whatever. And where does the money come from? Never mind, I've got mine. Sod everyone else.

Upon such foundations is modern Britain built.

and its all my own fault.

Indeed it is.

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Watch those disgraceful adverts for loans and remortgaging on the TV carefully when the small print appears. Don't even be distracted by the ridiculous double figure APR. Look at the ARRANGEMENT FEE!

It flashes in small print on the screen at 4% of the total amount borrowed. Now remember these companies are NOT the lenders. They are mortgage brokers. Not only do they earn a procuration payment of up to 1% for sub prime lending, they also get the 4% on top. ie: a £100,000 mortgage earns them 5 grand. Contrast that with a reputable mortgage adviser who only earns 0.35% as a procuration payment for normal lending and no fee for arranging the mortgage.

Of course you then get Sid and Doris Bonkers smiling in their armchair telling us all how nice and helpful these parasites have been, and even the phone call was free!

Pass the sick bag.

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Personally I feel sorry for them - and I really hope they have the emotional resources to come through this as they are in for a very tough time.

I'm reminded of a revised social class structure I saw a few years ago. The second and third to bottom levels were lower class and lower class-lucky. The only difference was education.

I count myself extremely lucky that I had parents who despite being unemployed for much of my teenage years (combination of 80s recession and my mother needing care) saw the value of education in all senses (not just school).

It is about time that personal finance management was taught at schools - because it surely isn't being taught at home.

Edited by greencat

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I don't feel too sorry for them.

The world is full of people who cannot afford to buy anything and live in absolute poverty, not just on benefits.

This person has taken out a credit card for every year she was able to have one, and run up over £11K per year on average in debt.

Why is this not her fault?

If someone does not learn that murder is wrong during their upbringing or education and then they kill somebody I'm sure they won't get the same sympathy if they kill. The same goes for any other criminal event. But somehow when its just that they didn't learn that greed, envy and debt were bad things its not their fault..... some of you are going soft in the head.

This may not be as severe as murder, but it certainly is having a big and unwelcome impact on the rest of society.

It is feeble minded muppets like this that have become the worst parts of consumer britain's suy now, pay never culture.

They have helped pushing up house prices, they will cause all of us to have far more expensive credit in future as banks will start to hurt when all of these fools end up bankrupt.

Many of the people in this situation will end up having their debts paid by others (Indirectly via higher bank charges after bankruptcies increase etc), and then probably have little or no self respect and end up on long term incapacity benefits because they are "stressed".

Do I feel sorry for them? Not a bit.

But if you give me the £34K they spent to spend on WTF I want then I might feel a bit of sympathy.

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Yeah - perhaps you're right. All very good points. Perhaps I did wake up feeling too fluffy. I should save my sympathy for those who run up large debts through no fault of their own rather than to finance a lavish lifestyle.

Enjoying life doesn't have to cost (much) money though. There are still (just) things you can enjoy for free. So you don't have to slob out in front of the box.

Edited by greencat

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I suppose each and every case will be different but to be quite honest in a country where you can buy your tatties ready peeled and boiled in little boxes, every different kind of remote control for every conceiveable kind of gadget, sue teachers for maintaining discipline and all the other carp that seems to be going on in the UK today then what the heck do you expect?

We seem to be turning into a nation that has little or no work ethic, thinks the world owes us something whilst the sun shines out of our backsides, that money is easy got by becoming famous or buying a few properties and renting them out to the less fortunate at over inflated prices.

Personal and social responsibility have gone out of the window and we think we are entitled to holidays, cars, furniture etc. Most of the nation seem to sit on their fat backsides wondering how they can make themselves feel better by buying something rather than earning their own self respect by doing something that makes them feel worthwhile.

What would happen if credit ceased to exist tomorrow. Wages returned to be paid in cash on a weekly basis and mortagages would be maximum 3x wages?

Bet you'd see a bit of personal responsibility return then.

Forrest Gump - Stupid is as stupid does!

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Why the condemnation?

In a zany world where any kind of growth is ruthlessly persued these people are the heroes paying your wages by spending far and beyond their probably modest disposable income.

How many people here work for organisations who have seen their profits swelled, directly or indirectly, over the last few years by people killing themselves with debt?

Sadly, these heroes will be forgotton when the recession comes and no one will appreciate them for offering themselves as a sacrifice to the market.

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Why the condemnation?

In a zany world where any kind of growth is ruthlessly persued these people are the heroes paying your wages by spending far and beyond their probably modest disposable income.

How many people here work for organisations who have seen their profits swelled, directly or indirectly,  over the last few years by people killing themselves with debt?

Sadly, these heroes will be forgotton when the recession comes and no one will appreciate them for offering themselves as a sacrifice to the market.

Crashed,

You are being ironic right? If not, then WTF!?!?! Heroes!?!?!?!!??!? Oh yes, she can justify her greed by saying it's good for the economy...right up to the point where the whole thing goes bang because of STUPID, GREEDY sh1its like her. :angry:

Can somebody lend me a billion quid...then I can be a massive hero by buying myself sh1it I don't need. Whatever this woman is (and I can think of a few words to describe her) she is not a hero! <_<

In response to needle's earlier post saying I should not sneer. Well, I disagree....this once great country is turning into a binge-drinking, buy-now-pay-later, tv-addled, remortgaging, workshy, I'm-the-victim, It's-not-my-fault, childish, stupid, embarrassing mockery.......and it is people like her that are on the front line. Her stupidity and greed, coupled with the stupidity and greed of many others like her, is what is going to sink our economy and make life worse for EVERYONE.

I WILL judge and sneer at people like this...a bit of social disapproval is what people like this really need, instead of 'you're a beautiful, special, unique human being'! :angry:

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I feel its a hard or bitter person who would not feel a degree of sympathy for these people however reckless their folly may be.

What amazes me with this why are they now in such a state with 40k of debt? Surely she/he must have been a little concerned when it reached 5k 10k 20k etc etc......but clearly did nothing about it?

How on earth did the lending companys continue to lend so much more credit (ok we know the answer to that) it just seems to me to be a complete meltdown of all common sense?

I took out a small loan the other week just a grand for something I needed (my only debt I am pleased to say) and my bank hardly checked me over as I have a good record and plently of cash stashed in another account I don,t touch. The guy there told me I was cleared to loan 25k "so no probs with a grand will be in your account this morning sir!"! I found that a bit scary I guess some people find it tempting?

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What I did find quite ironic about the borrowing thing was that a couple of months ago I was looking at a property that was cash offers only due to it being of non-traditional construction.

I needed to get about another 8k together to make the cash offer. Bearing in mind that I am an STR with, what I consider to be, quite a substantial amount in the bank, could I heckers like borrow the money. Nope - we don't lend to renters.

I managed to eventually find one company that would. The set up fees were unbelievable as were the interest rates and any early settlement fees.

It just wasn't worth doing.

So they will lend to somebody who has little or no visable means of paying it back. But not to somebody who has? Bear in mind they didn't know I was putting the money toward a house, could have been a car or any other consumerable (which would be certain to depreciate).

Anybody still willing to take "advice" from financial institutions?

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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