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New Citizens Advice Bureau Swamped By Young Professionals In London

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New citizens advice bureau swamped by young professionals

Peter Gruner and Mark Blunden

9 May 2011

Hundreds of debt-ridden young professionals are turning to a new Citizens' Advice Bureau in London.

The centre in Islington has been inundated with requests for help from first-time homeowners unable to pay off large mortgages and women "maxing out" store cards from firms such as Waitrose and Marks & Spencer.

Advisers say the credit crunch and recession saw a generation of affluent middle-class Londoners finding themselves in serious debt. One of the worst hit group is interior designers.

The centre, in Upper Street, is the first to open in London in about 20 years and sees up to 70 clients a day.

Jeanette Daly Mathias, manager of the service, said that for years it was mainly the poorest residents who sought debt help at the CAB. She said: "People are making poor choices of credit and suffering with loans secured against their homes. In one case a woman found she owed £80,000 over 20 credit cards. But I've also seen people with a £4,000 or £5,000 debts in tears."

CAB workers advise people to pay off emergency debts first and then try to negotiate around other financial commitments.

http://www.thisislon...rofessionals.do

London is as fcucked as the rest of the UK, the only difference is the debts are much larger.

The higher you go, the further you fall...

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...worst hit group is interior designers.

Interior design isn't a profession; it's a hobby! :lol:

(In fact I believe it's more properly called "decorating".)

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http://www.thisislon...rofessionals.do

London is as fcucked as the rest of the UK, the only difference is the debts are much larger.

The higher you go, the further you fall...

affluent middle-class Londoners finding themselves in serious debt.

How does that work then?

Edited by georgia o'keeffe

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affluent middle-class Londoners finding themselves in serious debt.

How does that work then?

Schroedingers Fat Cats.

We are opening the box and find they are alive after all.

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In one case a woman found she owed £80,000 over 20 credit cards

How can you just find out you owe this kind of money in debt, I just dont understand it, it's not like you find out you are adopted or you have some rare illness, you have to make a conscious effort to obtain the cards, spend on them and not pay them off.

London is full of this, this is why it's taking so long for any crash to happen here, the whole sentiment is based on hot air and debt, there is no real money, its all interior designers and non job luvvies maxing out credit card after credit card to keep up the facade of wealth.

Let it all fall and burn :angry:

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affluent middle-class Londoners finding themselves in serious debt.

How does that work then?

Don't underestimate how much cash you can burn in London. Especially if you're trying to keep up with the Jones'.

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http://www.thisislon...rofessionals.do

London is as fcucked as the rest of the UK, the only difference is the debts are much larger.

The higher you go, the further you fall...

What's new....there are some that can't help themselves...wherever they live, whatever they earn they will always spend more than they receive..... easily available credit only exasperates their problems...never save for a rainy day, while they got it to spend the sun is always shining. ;)

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How can you just find out you owe this kind of money in debt, I just dont understand it, it's not like you find out you are adopted or you have some rare illness, you have to make a conscious effort to obtain the cards, spend on them and not pay them off.

London is full of this, this is why it's taking so long for any crash to happen here, the whole sentiment is based on hot air and debt, there is no real money, its all interior designers and non job luvvies maxing out credit card after credit card to keep up the facade of wealth.

Let it all fall and burn :angry:

Actually this is quite plausible, i still have a HSBC credit card from the UK which never gets used, during some spring cleaning the other month i found out i have a 3.86 credit balance on it which i didnt even know was there so it is possible

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How can you just find out you owe this kind of money in debt, I just dont understand it, it's not like you find out you are adopted or you have some rare illness, you have to make a conscious effort to obtain the cards, spend on them and not pay them off.

London is full of this, this is why it's taking so long for any crash to happen here, the whole sentiment is based on hot air and debt, there is no real money, its all interior designers and non job luvvies maxing out credit card after credit card to keep up the facade of wealth.

Let it all fall and burn :angry:

as with IO mortgages, its not the amount your borrow, its the monthly outgo you think about..its when even that is a problem that you realise the cliff you are looking down from.

Indeed, AFFORDABILITY IS ALL ABOUT THE MONTHLY CASH FLOW.

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Don't underestimate how much cash you can burn in London. Especially if you're trying to keep up with the Jones'.

London seems like a different country in many ways. I hate to go there, everything is so expensive.

It wouldnt surprise me if a lot of those in trouble have good salaries by UK standards, and expect to live well, but completely fail to take into account that their salaries might not be good at all by London standards.

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London seems like a different country in many ways. I hate to go there, everything is so expensive.

It wouldnt surprise me if a lot of those in trouble have good salaries by UK standards, and expect to live well, but completely fail to take into account that their salaries might not be good at all by London standards.

No it is not, (apart from housing) only some that live there spend more than they should to keep up with their friends on high salaries...you can't live a rich life if you have to live on a poor salary..... ;)

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London seems like a different country in many ways. I hate to go there, everything is so expensive.

Many things in London are much the same as elsewhere in the UK and in some cases can be cheaper. Of course , if you look to spend money it is easy to do, but excluding property costs, you can live as cheaply in London as anywhere else.

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affluent middle-class Londoners finding themselves in serious debt.

How does that work then?

Well, let me think...

Just for starters, there's Liz Jones of the Mail, whose bare necessities include Jo Malone candles at £50 a pop...

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Well, let me think...

Just for starters, there's Liz Jones of the Mail, whose bare necessities include Jo Malone candles at £50 a pop...

CAB: OK, let's make a list of your outgoings. How much do you spend each week on food?

Young Professional: Well, Ocado handles all that for me...

I have to admit, looking at the salaries advertised in London now I no longer see how people can afford to rent there, let alone buy a house.

It is nigh on impossible for a couple both earning good London wages, let alone for a single person.

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Aren't insolvenceis running at something like 140 000 a year. In a population of 60 million, with a life expectancy of about 80.

Lifetime risk of insolvency of UK citizen running at about 20%.

Youth unemployment 20%+

Graduate unemployment 20%+

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CAB: OK, let's make a list of your outgoings. How much do you spend each week on food?

Young Professional: Well, Ocado handles all that for me...

I have to admit, looking at the salaries advertised in London now I no longer see how people can afford to rent there, let alone buy a house.

It is nigh on impossible for a couple both earning good London wages, let alone for a single person.

You look at the average couple...buy a 1 bed flat, say in Tower Hamlets, Hackney etc.. for 200k...they rely on two incomes to keep the flat running. They then push towards their mid 30s, and realise they want kids...but they are literally buggered because one of them cannot afford to stop working (to pay for the mortgage as well as the child care fees), and they cannot afford to upsize...

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Well, let me think...

Just for starters, there's Liz Jones of the Mail, whose bare necessities include Jo Malone candles at £50 a pop...

But Jo Malone candles are an essential cost not like housing which is something people just decide to rent or buy on a whim.

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I have to admit, looking at the salaries advertised in London now I no longer see how people can afford to rent there, let alone buy a house.

It is nigh on impossible for a couple both earning good London wages, let alone for a single person.

London is a mix of many people there are

The British rich , The British stinking rich , the foreign rich and stinking rich, there are those who bought on average wages 20 years ago , there are those in social housing , however the younger generation is fked and I don't know whether there are enough of the others to keep everything going and whether the priced out generation will matter .

From what I have seen London is not an English City , but a Global City that only the wealthy or lucky can afford to live in . For the average person the wages are not that much higher than any other part of the country and certainly do not compensate for the absurd house prices.

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Interior design isn't a profession; it's a hobby! :lol:

(In fact I believe it's more properly called "decorating".)

In my experience, interior design seems to be something every female believes they excel at. This being the case - I'm amazed there is any need to pay for it - as most ladies will happily give their advice for free.

Edited by StainlessSteelCat

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In my experience, interior design seems to be something every female believes they excel at. This being the case - I'm amazed there is any need to pay for it - as most ladies will happily give their advice for free.

They can always become chocolatiers.

Met a lady barrister a few months ago who reckons she'll earn more doing that than from messing up cases in court!

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Aren't insolvenceis running at something like 140 000 a year. In a population of 60 million, with a life expectancy of about 80.

Lifetime risk of insolvency of UK citizen running at about 20%.

Youth unemployment 20%+

Graduate unemployment 20%+

There were 30,162 individual insolvencies in England and Wales in the first quarter of 2011. This was a decrease of 15.5% on the same period a year ago.

This was made up of 12,539 bankruptcies (which were down 31.3% on the corresponding quarter of the previous year), 10,835 Individual Voluntary Arrangements (IVAs), (which were down 8.0% on the corresponding quarter of the previous year) and 6,788 Debt Relief Orders (DROs), (which were up 20.3% on the corresponding quarter of the previous year)

http://www.insolvency.gov.uk/otherinformation/statistics/201105/index.htm

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Its not the size of the debt that is the problem, but it is the monthly payment i.e affordability that matters..... Wrong, wrong, wrong!

This is classic Gordon Brown rhectoric echoed by mortgage advisors and financial advisors nationally. Take on as much debt as you can, work out if you can meet the minimum monthly payment, folly. They were all suckered into it.

Edited by Money Spinner

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  • 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% +
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      • up 5%



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