Jump to content
House Price Crash Forum
interestrateripoff

Keeping Up With The Joneses Left Me Bankrupt 63,000 Women A Year Becoming Bankrupt

Recommended Posts

http://www.dailymail.co.uk/femail/article-1355354/Keeping-Joneses-left-bankrupt.html

The birthday party Nicola Ford held for her 40th wasn’t quite what she had hoped for, ­coming as it did three weeks after she was declared bankrupt.

She couldn’t afford to throw a lavish soiree at a restaurant, like many of her friends.

Nor could she celebrate the occasion in her £300,000 home, ­having been forced to sell it to help pay off debts of more than £100,000.

Instead, she had to be content to toast her fourth decade with friends over a cheap bottle of wine. And the venue? The three-bedroom semi with bare walls and very little furniture, where she had been rehoused by the council.

‘After months of feeling like a failure, it was a turning point for me,’ says Nicola, a mother-of-three from Kent, of her birthday in February last year. ‘That night, I told everybody that I was on the way up again.

‘I’d been made redundant and I’d lost ­everything — my job, my house, my car, not to mention my self-esteem. I’d had to beg the local council to ­re-house us. But being penniless forces you to take a long, hard look at yourself.’

Nicola’s descent into six-figure debt and ­bankruptcy was the price she paid for wanting to maintain her comfortable, middle-class ­lifestyle, despite losing her job.

She is far from alone. As recently as a decade ago, female bankrupts were a rarity. But earlier this year, insolvency expert Mark Sands, from accountancy firm RSM Tenon, estimated that 63,000 women went bankrupt in 2010 — 172 a day.

In 2007, Nicola was working as an estate agent when she and her school teacher ­husband moved with their three young boys into their dream home — a four-bedroom house on a luxury development in Kent.

‘It looks like something out of Desperate ­Housewives, with lots of glamorous women ­driving round in gleaming four-wheel drives, dressed in designer clothes even on the school run. I wasn’t in that league, but I wanted to be.

‘I thought if we could afford the move and the mortgage, the rest would follow. We had £60,000 to put down as a deposit on the house, which made the mortgage a manageable £1,000 a month, even though we already had some large loans.

Unfortunately, by the time we’d paid the stamp duty and moved in, our other loans and debts stood at £30,000. On top of that, I bought a £10,000 silver Golf on finance, justifying the expense by saying I needed to look the part.

..........

‘The mortgage was manageable on our joint income. My husband was on a relatively low ­salary and I was only working part-time — earning around £1,000 a month — but we anticipated that he would increase his salary with overtime and hopefully a promotion, while I planned to go full-time when my youngest child was older. We were sure our incomes would only increase.

Plus, I anticipated the house would rise in value by about £20,000 a year, so we’d quickly clear our old debts. The plan was to remortgage or sell the house at a profit and make money on the property market. It was a great environment for the children and I enjoyed living the dream.

Please stop laughing at the back.

Still as an estate agent house prices only ever go up right? This plan was full proof, she was an estate agent after all....

Having debt on one level isn't a problem providing you can service the debt......

So rather than living within your means she decided to spend lots of money they hadn't got but the banks where more than willing to lend.

Share this post


Link to post
Share on other sites

Clearly, a LIAR LOAN comes home to roost.

He, on a low wage, she part time

quick calc....£260K mortgage....if it IS a £300 K house now.

Share this post


Link to post
Share on other sites

Woman with a tramp stamp becomes estate agent, estimates massive gains out of property, takes on massive (liar) loans and keeps living luxurious lifestyle despite funding not being enough, eventually defaulting on the debt. That pretty much sums it up - laughable.

Love the top best rated comment.

Share this post


Link to post
Share on other sites

And if a £260k mortgage was only £1,200 a month, I guess it must have been IO as well.

probably a discounted 2 years teaser rate.

Share this post


Link to post
Share on other sites

Please stop laughing at the back.

Still as an estate agent house prices only ever go up right? This plan was full proof, she was an estate agent after all....

Having debt on one level isn't a problem providing you can service the debt......

So rather than living within your means she decided to spend lots of money they hadn't got but the banks where more than willing to lend.

The thing is, a School teacher and estate agent couple would, in days gone by (before circa. 2000?), have been able to afford a 4 bed house and a couple of cars without having to resort to 5x combined salary IO loans, or whatever they ended up with.

Share this post


Link to post
Share on other sites

The thing is, a School teacher and estate agent couple would, in days gone by (before circa. 2000?), have been able to afford a 4 bed house and a couple of cars without having to resort to 5x combined salary IO loans, or whatever they ended up with.

There's a grain of truth in that statement.

I'm married now but was long-term single for years and believe me, this country is full of vain women living way beyond their means expecting to meet a wealthy bloke to bail them out of their debt. Even hinting they cut down a bit meant the next date was off - good riddance too.

Share this post


Link to post
Share on other sites

And what's this??

Nicola got another job, earning £9 an hour as a receptionist at a cosmetic dental surgery.

‘They gave me Botox as a perk, as they wanted me to look good,’ she laughs. ‘I felt great and started to believe in my dream again. For a few months, I relaxed a bit. I’d drink lattes in the ­coffee shop with the other mums and treated myself to one or two designer tops.’

Laughs?? :o

Share this post


Link to post
Share on other sites

Bankruptcy should also mean a minimum one year prison sentence with no exceptions.

for what crime?

Share this post


Link to post
Share on other sites

for what crime?

Taking stuff and not giving it back. However, there needs to be some way of distinguishing between someone going bankrupt because they were an obviously greedy over-spending moron and someone going bankrupt because they made an honest go at getting a business going (for example) but it failed.

Share this post


Link to post
Share on other sites

Taking stuff and not giving it back. However, there needs to be some way of distinguishing between someone going bankrupt because they were an obviously greedy over-spending moron and someone going bankrupt because they made an honest go at getting a business going (for example) but it failed.

Agreed.

But then don't you know that designer handbag prices only ever go up?

Share this post


Link to post
Share on other sites

There's a grain of truth in that statement.

I'm married now but was long-term single for years and believe me, this country is full of vain women living way beyond their means expecting to meet a wealthy bloke to bail them out of their debt. Even hinting they cut down a bit meant the next date was off - good riddance too.

Perhaps ultimately, they will have to resort to another profession to pay their debt...... the oldest profession?

Share this post


Link to post
Share on other sites

http://www.dailymail.co.uk/femail/article-1355354/Keeping-Joneses-left-bankrupt.html

Please stop laughing at the back.

Still as an estate agent house prices only ever go up right? This plan was full proof, she was an estate agent after all....

Having debt on one level isn't a problem providing you can service the debt......

So rather than living within your means she decided to spend lots of money they hadn't got but the banks where more than willing to lend.

You have to hand it to the Mail - they know how we all love a bit of Schadenfreude at the expense of some daft spendaholic. How much did they pay her for her fearless expose of her own twitness, I wonder?

I was half watching rip-off Britain last night - mostly about bank charges/credit card interest rates. Couldn't help wondering how much debt the cc companies have to write off every year. Anyone know? With so many Nicolas about it must be colossal. Not forgetting the Nicholases of course - one bloke on rip-off B last night with £26K on his ccs. - and paying the min. each month.

Edited by Mrs Bear

Share this post


Link to post
Share on other sites

The thing that strikes me about this is that it will not be unusual.

She wanted to be like all the posh ladies on the estate in their 4X4's and designer gear - What makes her think they aren't playing the same unsustainable keep up with the Jones's game she was.

I live on an estate like this (hate it BTW, wanted to move but can't/won't due to feckin silly prices to move up). There are fancy cars and designer gear all over the shop. I know for a fact many are living beyond their means but desperately try to maintain an image by buying slightly older BMW's, where 4 years ago they were new.

Up north we call them Jam Butty Estates. Because it costs so much to live on them you can only eat jam butties.

There are lots and lots like this woman and the wheel is wobbling.

Share this post


Link to post
Share on other sites

...being penniless...

She was well beyond penniless - she was tens of thousands of pounds in debt.

Delusional to the end.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 284 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.