The Eagle Posted May 9, 2011 Report Share Posted May 9, 2011 New citizens advice bureau swamped by young professionalsPeter 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... Quote Link to post Share on other sites
Nationalist Posted May 9, 2011 Report Share Posted May 9, 2011 ...worst hit group is interior designers. Interior design isn't a profession; it's a hobby! (In fact I believe it's more properly called "decorating".) Quote Link to post Share on other sites
Georgia O'Keeffe Posted May 9, 2011 Report Share Posted May 9, 2011 (edited) 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 May 9, 2011 by georgia o'keeffe Quote Link to post Share on other sites
Bloo Loo Posted May 9, 2011 Report Share Posted May 9, 2011 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. Quote Link to post Share on other sites
Lord D'arcy Pew Posted May 9, 2011 Report Share Posted May 9, 2011 The credit boom created a generation who all thought they were worth it. Now all they have to do is start paying for it. Quote Link to post Share on other sites
JustAnotherProle Posted May 9, 2011 Report Share Posted May 9, 2011 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: Quote Link to post Share on other sites
Odysseus Posted May 9, 2011 Report Share Posted May 9, 2011 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'. Quote Link to post Share on other sites
winkie Posted May 9, 2011 Report Share Posted May 9, 2011 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. Quote Link to post Share on other sites
Georgia O'Keeffe Posted May 9, 2011 Report Share Posted May 9, 2011 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 Quote Link to post Share on other sites
Bloo Loo Posted May 9, 2011 Report Share Posted May 9, 2011 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. Quote Link to post Share on other sites
The Spaniard Posted May 9, 2011 Report Share Posted May 9, 2011 Interior design isn't a profession; it's a hobby! Quote Link to post Share on other sites
leicestersq Posted May 9, 2011 Report Share Posted May 9, 2011 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. Quote Link to post Share on other sites
winkie Posted May 9, 2011 Report Share Posted May 9, 2011 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..... Quote Link to post Share on other sites
arrgee1991 Posted May 9, 2011 Report Share Posted May 9, 2011 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. Quote Link to post Share on other sites
Mrs Bear Posted May 9, 2011 Report Share Posted May 9, 2011 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... Quote Link to post Share on other sites
sarahleyburn Posted May 9, 2011 Report Share Posted May 9, 2011 Don't underestimate how much cash you can burn in London. Especially if you're trying to keep up with the Jones'. Indeed: A growing number of private educational establishments are turning to debt collection agencies to help collect fees in arrears. One leading debt collection agency, Daniels Silverman, has seen a 35% increase in schools and colleges signing up to its service in the last 12 months. The firm's director, Tracy Burgess, blames the dip in fees paid on increased economic uncertainty putting pressure on household finances, causing parents to fall "quickly and unexpectedly" into financial difficulties. Quote Link to post Share on other sites
The Masked Tulip Posted May 9, 2011 Report Share Posted May 9, 2011 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. Quote Link to post Share on other sites
Self Employed Youth Posted May 9, 2011 Report Share Posted May 9, 2011 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%+ Quote Link to post Share on other sites
Dave Beans Posted May 9, 2011 Report Share Posted May 9, 2011 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... Quote Link to post Share on other sites
miko Posted May 9, 2011 Report Share Posted May 9, 2011 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. Quote Link to post Share on other sites
miko Posted May 9, 2011 Report Share Posted May 9, 2011 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. Quote Link to post Share on other sites
StainlessSteelCat Posted May 9, 2011 Report Share Posted May 9, 2011 (edited) Interior design isn't a profession; it's a hobby! (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 May 9, 2011 by StainlessSteelCat Quote Link to post Share on other sites
okaycuckoo Posted May 9, 2011 Report Share Posted May 9, 2011 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! Quote Link to post Share on other sites
BreakingWaves Posted May 9, 2011 Report Share Posted May 9, 2011 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 Quote Link to post Share on other sites
200p Posted May 9, 2011 Report Share Posted May 9, 2011 (edited) 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 May 9, 2011 by Money Spinner Quote Link to post Share on other sites
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