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Personal Debt And The Economy


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HOLA441

In the past couple of weeks I've had a lot of people admitting to me that they are in severe financial trouble and they are not on low incomes either. It's really shocked me and now I'm wondering if the new budget which seems to help the lowest paid workers and penalise those on average to good wages, will send a lot of people over the edge.

Two close friends I've spoken to in the past week alone....

One male friend is on around £45k (also a public sector worker) admitted to me that he is at the point of having no disposable income at all because any spare money now goes on financing his debts (from credit cards and an overdraft). He has now organised a loan to pay off his debts and lower his monthly outgoings, leaving him with a couple of hundred pounds each month for food, petrol etc. Oddly when organising a loan, he was required to open a new bank account with the same bank, and the bank in question even offered him a £15k overdraft limit!!!!!!

Another female friend, told me that her and her husband who are both on average salaries are at a critical point with their finances. Unfortunately she is the sort always trying to keep up with The Joneses. She has gotten herself into thousands of pounds of debt again (and this is not the first time it's happened!), yet she is keeping this all from her husband who thinks they are doing really well. She has been panicking and feels her only option is to try and get it added to her mortgage (again).

I really do feel for them but it makes me wonder how many others are secretly struggling at the moment, and what things will be like in a couple of years.

Anyone else had people admitting they are struggling financially lately?

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HOLA442
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HOLA443

Stories like this make me glad i'm a tight-**** with a 6 year old payg mobile phone and a 25" crt TV that isn't even widescreen. I don't give a toss about the Jones'

I'm grumpy this month as i went on holiday, which meant i didn't save anything.

If my house loses 50% of it's value i don't really care, it still has the same number of rooms and i won't feel any poorer, but then i never felt any richer when it went up.

People are greedy and stupid and place too much value in what other people think (or what they think other people will think, which is different)

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HOLA444

the best possible outcome for these folks is bankruptcy, followed by the chance of a reasonable job and a clean start having learned a salutary lesson.

if all they get offered is bankruptcy and homelessness then we have a very bad problem indeed.

Surely the best possible outcome for these folks is if they simply ask the banks for proof they ever had any money in the first place and then once they hear nothing back from the fraudsters spend the rest of their lives debt free?

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HOLA445

Surely the best possible outcome for these folks is if they simply ask the banks for proof they ever had any money in the first place and then once they hear nothing back from the fraudsters spend the rest of their lives debt free?

Does that ever work?

I mean has anyone successfully done it in the UK (I've heard stories of it being done over seas and even with things like HP in the UK but that was a 'paperwork issue' and never on a mortgage)?

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HOLA446

Does that ever work?

I mean has anyone successfully done it in the UK (I've heard stories of it being done over seas and even with things like HP in the UK but that was a 'paperwork issue' and never on a mortgage)?

I've done it.

The whole thing is an elaborate bluff. ****** em.

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HOLA448

One male friend is on around £45k (also a public sector worker) admitted to me that he is at the point of having no disposable income at all because any spare money now goes on financing his debts (from credit cards and an overdraft).

This is the optimum point for banks to get you in, maximum debt but still able to service it whilst living on rations. The same principle applies for government debt.

VMR.

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HOLA449

These people need to do one simple thing: pay off their debts. No consolidation; no IVAs; no second mortgages; no moaning to the CAB; just get off their butts and pay back the money.

When I was thousands in debt I didn't file for bankruptcy, I just budgeted, worked hard, bought and sold stuff on Ebay and paid my dues. It took about three years, but I feel a hell of a lot better now.

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HOLA4410

Stories like this make me glad i'm a tight-**** with a 6 year old payg mobile phone and a 25" crt TV that isn't even widescreen. I don't give a toss about the Jones'

I'm grumpy this month as i went on holiday, which meant i didn't save anything.

If my house loses 50% of it's value i don't really care, it still has the same number of rooms and i won't feel any poorer, but then i never felt any richer when it went up.

People are greedy and stupid and place too much value in what other people think (or what they think other people will think, which is different)

You beat me - I have a 26" CRT TV!

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HOLA4416

This is the optimum point for banks to get you in, maximum debt but still able to service it whilst living on rations. The same principle applies for government debt.

VMR.

While the consumer economy comes to a juddering halt. Still, no mind...

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HOLA4417

I've done it.

The whole thing is an elaborate bluff. ****** em.

You fail on one point, if enough people do this the banks will lobby (read bribe) the government to take action on its behalf, and remember the government has a whole load of AK47s.

The unfair bank charges thing was swept under the carpet due to a bribe. So whatcha gonna do when Ak47 is put to your head? Or a tank is parked on your lawn?

Remember government = bank , bank = government

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HOLA4419

not unless it's at least 10 years old, CRT, and not widescreen

Not quite. It's CRT but eight years old and it is widescreen.

My children are disgusted with it and keep leaving brochures for big wide screen tellies with Sky packages around the house.

And no, they don't have tellies in their bedrooms.

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HOLA4420

Not quite. It's CRT but eight years old and it is widescreen.

My children are disgusted with it and keep leaving brochures for big wide screen tellies with Sky packages around the house.

And no, they don't have tellies in their bedrooms.

Your offspring's disgust means you qualify, despite the high-tech widescreen capabilities.

Bonus points if it's too heavy and cumbersome to be lifted by a single human, as mine is :)

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HOLA4421

You fail on one point, if enough people do this the banks will lobby (read bribe) the government to take action on its behalf, and remember the government has a whole load of AK47s.

The unfair bank charges thing was swept under the carpet due to a bribe. So whatcha gonna do when Ak47 is put to your head? Or a tank is parked on your lawn?

Remember government = bank , bank = government

Maybe - but screw everyone else, I want to do it before the AK47's start spraying debt bullets in the streets. I actually have zero debt, but might rack some up.

I think Injin is right, they lend me 'money' that didn't previously exist, which never manifests beyond numbers on a screen - then charge me interest and threaten to destroy me if I don't pay them back in actual money. If I don;t pay them back it actually makes no material difference to them.

Edited by daniel stallion
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HOLA4424

You fail on one point, if enough people do this the banks will lobby (read bribe) the government to take action on its behalf, and remember the government has a whole load of AK47s.

The unfair bank charges thing was swept under the carpet due to a bribe. So whatcha gonna do when Ak47 is put to your head? Or a tank is parked on your lawn?

Remember government = bank , bank = government

If everyone does it, they won't be able to afford tanks.

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HOLA4425

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