ccc Posted February 10, 2011 Share Posted February 10, 2011 Read a lot about this in the past in regards to huge credit bubbles. Final stages are where nobody wants to take on debt anymore - it is something to be ashamed off etc... Have seen a fair bit about students recently on TV. About the costs and debts invovled at the end of their courses. Seen a fair few interviews and chat sessions. One yesterday with Nick Clegg as well. Pretty much every one of them was talking about the debt they would be in - and why that idea scared them. How many of them may not even go to Uni simply due to not wanting to be in huge debt at the end of it. Now I know this is a small sample and plenty of people in the UK are still loving borrowing as much as they can. However there is a definite change of general attitude that I see and hear. People are no longer open to discuss how much they borrowed on this mortgage, or that credit card or whatever. There does seem to be a shame gradually being attached to being in a lot of debt. This certainly was not the case in 2000-2007. That was very much - borrow all you can and tell everyone about it - territory. A few of my pals who used to be very much in the 'borrow all you can' brigade are now most definitely trying to pay off all the debt they possibly can. Very quiet about how much they owe as well. When previously they would tell all and sundry. Any other similar anecdotes out there ? Quote Link to comment Share on other sites More sharing options...
SarahBell Posted February 10, 2011 Share Posted February 10, 2011 (edited) BUT these same young people will be clammering to pay £250k for a house.... The most FAQ on the student fees bit was "how will it affect their ability to get a mortgage" Edited February 10, 2011 by SarahBell Quote Link to comment Share on other sites More sharing options...
ccc Posted February 10, 2011 Author Share Posted February 10, 2011 BUT these same young people will be clammering to pay £250k for a house.... The most FAQ on the student fees bit was "how will it affect their ability to get a mortgage" Very true. But at least they are actually thinking about what all this debt means in the long term. A few years back I don't think many even gave it a second thought. Its a start ! Quote Link to comment Share on other sites More sharing options...
SarahBell Posted February 10, 2011 Share Posted February 10, 2011 Very true. But at least they are actually thinking about what all this debt means in the long term. A few years back I don't think many even gave it a second thought. Its a start ! I just think it shows how much they've been hoodwinked... it's like there's good debt (buying a massively overinflated price house) and bad debt (paying for an education) Quote Link to comment Share on other sites More sharing options...
ccc Posted February 10, 2011 Author Share Posted February 10, 2011 I just think it shows how much they've been hoodwinked... it's like there's good debt (buying a massively overinflated price house) and bad debt (paying for an education) Yep - although there was a nice comment from one of them in the Nick Clegg chat - jist of it was us lot will have to take on all this debt to pay for your debt and its not our fault. Straight to the point and spot on. Quote Link to comment Share on other sites More sharing options...
Guest_flaps_* Posted February 10, 2011 Share Posted February 10, 2011 I just think it shows how much they've been hoodwinked... it's like there's good debt (buying a massively overinflated price house) and bad debt (paying for an education) A mid 30's lad who works with my GF described a mortgage as precisely that only the other day (she emailed me immediately in disbelief). Apparently he knows just what he is talking about though, becuase his Missus is a financial advisor and apparently this is how she has explained it to him! Quote Link to comment Share on other sites More sharing options...
WSG Posted February 10, 2011 Share Posted February 10, 2011 A mid 30's lad who works with my GF described a mortgage as precisely that only the other day (she emailed me immediately in disbelief). Apparently he knows just what he is talking about though, becuase his Missus is a financial advisor and apparently this is how she has explained it to him! this is the Martin Lewis thing isn't it Quote Link to comment Share on other sites More sharing options...
Self Employed Youth Posted February 10, 2011 Share Posted February 10, 2011 I have an interest free overdraft that runs out this year. We have had price of goods inflation but not much wage inflation to accompany it. I'll have only made a small saving. Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted February 10, 2011 Share Posted February 10, 2011 BUT these same young people will be clammering to pay £250k for a house.... The most FAQ on the student fees bit was "how will it affect their ability to get a mortgage" Pal of a workmate recently turned down for a mortgage becuse she (still?) had student debt. Wouldn`t have happened a couple of years ago? Quote Link to comment Share on other sites More sharing options...
long time lurking Posted February 10, 2011 Share Posted February 10, 2011 Yep the tide is definitely turned in the last few months ,as when I mention house price`s are going to fall{which they are in my neck of the woods } i no longer get people looking at me as if I'm daft ,it`s just a look of fear and then silence followed by them going of on a tangent to try and change the subject ,the chicken`s have come home to roost methinks Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted February 10, 2011 Share Posted February 10, 2011 Yep - although there was a nice comment from one of them in the Nick Clegg chat - jist of it was us lot will have to take on all this debt to pay for your debt and its not our fault. Straight to the point and spot on. But if they avoid housing debt, let that ponzi collapse (which is fast happening anyway) that mitigates the extra taxes they will pay? Boomers lose twice because their house plummets in value, and they pay extra tax? Quote Link to comment Share on other sites More sharing options...
Democorruptcy Posted February 10, 2011 Share Posted February 10, 2011 I've been suffering from saving revulsion for quite a while now. I cannot see this debt revulsion really taking off while interest rates are 0.5% Quote Link to comment Share on other sites More sharing options...
R K Posted February 10, 2011 Share Posted February 10, 2011 Did I hear Clegg correctly (I wasn't near the TV) when he was talking to these students last night and in response to complaints from a student that he'd have to pay back £30,000 in debt, Clegg said something like 'Yes, but you'll only have to pay back £30 per month so it won't be a problem'. Can it be true that Clegg is incapable of the simple maths of £30,000 / 30 in months. Quote Link to comment Share on other sites More sharing options...
19 year mortgage 8itch Posted February 10, 2011 Share Posted February 10, 2011 Did I hear Clegg correctly (I wasn't near the TV) when he was talking to these students last night and in response to complaints from a student that he'd have to pay back £30,000 in debt, Clegg said something like 'Yes, but you'll only have to pay back £30 per month so it won't be a problem'. Can it be true that Clegg is incapable of the simple maths of £30,000 / 30 in months. So, borrow 30 grand, pay off only £30 a month for 30 years and then it disappears, no balloon payment or anything. Next question is, who is left carrying the can in 30 years time when its all written off? Quote Link to comment Share on other sites More sharing options...
ccc Posted February 10, 2011 Author Share Posted February 10, 2011 But if they avoid housing debt, let that ponzi collapse (which is fast happening anyway) that mitigates the extra taxes they will pay? Boomers lose twice because their house plummets in value, and they pay extra tax? Heopfully in amongst all the VI tosh they can work that out. Fingers crossed. Did I hear Clegg correctly (I wasn't near the TV) when he was talking to these students last night and in response to complaints from a student that he'd have to pay back £30,000 in debt, Clegg said something like 'Yes, but you'll only have to pay back £30 per month so it won't be a problem'. Can it be true that Clegg is incapable of the simple maths of £30,000 / 30 in months. Yep - jist of it is that you will have longer to pay it back - brilliant - more interest !! Quote Link to comment Share on other sites More sharing options...
newbonic Posted February 10, 2011 Share Posted February 10, 2011 I just think it shows how much they've been hoodwinked... it's like there's good debt (buying a massively overinflated price house) and bad debt (paying for an education) That's like a parody of the Chris Morris 'Good AIDS, Bad AIDS' sketch. When all we'll be left with is plain old vanilla debt. Quote Link to comment Share on other sites More sharing options...
dances with sheeple Posted February 10, 2011 Share Posted February 10, 2011 That's like a parody of the Chris Morris 'Good AIDS, Bad AIDS' sketch. When all we'll be left with is plain old vanilla debt. And according to financial advisor Steven Down, AIDS stands for Avoid Installment Debt Slavery. A good way to put a really negative association on to something which VI`s push as good, but is in reality very bad for you. Quote Link to comment Share on other sites More sharing options...
Bruce Banner Posted February 10, 2011 Share Posted February 10, 2011 I was never comfortable with debt and paid it down as quickly as possible. I've been debt free for over twenty years. Quote Link to comment Share on other sites More sharing options...
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