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Financial Struggles With Bills And Debts 'worsen'

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http://www.bbc.co.uk/news/business-23534877

More than half of UK adults are struggling to keep up with bills and debt repayments, a major survey of people's finances has suggested.

Some 52% of the 5,000 people questioned said they were struggling, compared with just 35% in a similar study in 2006, the Money Advice Service said.

In Northern Ireland, some 66% said they were struggling.

The effects of the financial crisis meant fewer were planning ahead and putting money aside for emergencies.

I'm not surprised people are struggling the magic money tree of house prices going up to cover falling wages etc... has stalled. Won't someone please get house prices increasing by at least 10% a year to get us wealthy again. I hate being poor.

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http://www.bbc.co.uk/news/business-23534877

I'm not surprised people are struggling the magic money tree of house prices going up to cover falling wages etc... has stalled. Won't someone please get house prices increasing by at least 10% a year to get us wealthy again. I hate being poor.

They are getting to the point where their lies are not going to cut it. People can't eat propaganda.

I can't see the them getting to the next election without some "unforeseen" event taking the wheels off good and proper.

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does this mean struggling to make ends meet, or just struggling to understand finances in the family?

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As in struggling to pay for everything.

and this is different to any other period in History?

People always live to their means...Its the British Way.

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does this mean struggling to make ends meet, or just struggling to understand finances in the family?

If anyone saw the channel 4 car dealer programme on TV last night, I think it is struggling to understand finances. One classic example was the 21 year old who wanted a Range Rover. Did not know what the outstanding finance was on his current car (IIRC over 20K) and his argument was that somehow if someone was willing to lend him the money, then that said a lot about his standing and how he is perceived. I really don't think he is the only one to think like this (look at how good I am - they will lend me loads of money) and who has no grasp whatsoever of his liabilities

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If anyone saw the channel 4 car dealer programme on TV last night, I think it is struggling to understand finances. One classic example was the 21 year old who wanted a Range Rover. Did not know what the outstanding finance was on his current car (IIRC over 20K) and his argument was that somehow if someone was willing to lend him the money, then that said a lot about his standing and how he is perceived. I really don't think he is the only one to think like this (look at how good I am - they will lend me loads of money) and who has no grasp whatsoever of his liabilities

This reverse logic is very common indeed...Government think like it too...If an asset is falling due to market forces, then its our job to ensure that people CAN get the mortgages to buy....

Nulabour even said it too..."huge debt is a sign of success, as clearly, who would lend all this money to a failure?"

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We're on the cusp of a new 30 year bull market.

In wages.

From other posts, I think you really believe that.

Care to give an explanation on the forces stirring to bring that about?

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We need more zero hours contracts and NMW jobs so we can win the global race.I heard the MPs say it so it must be true.

When I was 10 I started to hear about all this and that it would make us all rich.Back then most people I knew had a final salary pension,good/decent wage,a bought house with small mortgage,no debt.

Im sure if they can finish the job we will all be living in Shangri La like they promised.Its only temporary that all the extra wealth and productivity has gone to the top 1% and the rentiers.

Plus NMW is roughly what people were earning 25 years ago nominal so why are people complaining,,? A chip butty then was 25p in my local chippy,now £1.50,my electric was £4 a week now £16 ,if wages had kept pace NMW would be £900 a week.Hang on...........

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This reverse logic is very common indeed...Government think like it too...If an asset is falling due to market forces, then its our job to ensure that people CAN get the mortgages to buy....

Nulabour even said it too..."huge debt is a sign of success, as clearly, who would lend all this money to a failure?"

I was taught that if you can't pay one week, one week, you can't pay two the next. Perhaps this old adage no longer holds true and should be "if you can't pay one week, one week, then the state will pay coz u is entitled innit"

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http://www.bbc.co.uk/news/business-23534877

I'm not surprised people are struggling the magic money tree of house prices going up to cover falling wages etc... has stalled. Won't someone please get house prices increasing by at least 10% a year to get us wealthy again. I hate being poor.

According to the article, 52% of 5000 users of money advice survey website are having problems.

On one level, I'm surprised 48% of people using that website aren't. But to generalise out to the whole population based on people who have probably recognised they're in trouble, is a little extreme.

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From other posts, I think you really believe that.

Care to give an explanation on the forces stirring to bring that about?

Seems extremely fanciful to me unless people start getting a bit more organised and aseertive regarding crap contracts etc. I'm emphatically not talking about traditional union involvement, that's rather discredited these days and would be too easy to write off.

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According to the article, 52% of 5000 users of money advice survey website are having problems.

On one level, I'm surprised 48% of people using that website aren't. But to generalise out to the whole population based on people who have probably recognised they're in trouble, is a little extreme.

I think that you have the wrong end of the stick a little. The BBC article is reporting some headline figures from the Money Advice Service's report, The Financial Capability of the UK.

The Money Advice Service is not just a website, from their About us page:

The Service began life in April 2010 as the Consumer Financial Education Body (CFEB) which was established under the Financial Services Act in 2010 with all-party support.

The Act makes clear CFEB’s duties to enhance the nation’s financial capability. It has a responsibility to develop consumer financial education, raise public understanding and knowledge of financial matters and the ability of people to manage their own financial affairs.

The report is not based on people using the website. In this context "on-line" (4000 of the 5000 in the total sample) means that the sample was drawn from the Ipsos MORI Online Panel.

These charts caught my eye, particularly the idea that 9% of the 21%, (i.e. about 2 people in a hundred in the population if the sample is representative - 100 respondents from the 5000 in the sample) have experienced a large unexpected drop in income during the last three years because they had to pay back debt...

have+you+had+a+drop+in+income.png

drop+in+income.png

[Edit: typo, clarity]

Edited by ChairmanOfTheBored

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If anyone saw the channel 4 car dealer programme on TV last night, I think it is struggling to understand finances. One classic example was the 21 year old who wanted a Range Rover. Did not know what the outstanding finance was on his current car (IIRC over 20K) and his argument was that somehow if someone was willing to lend him the money, then that said a lot about his standing and how he is perceived. I really don't think he is the only one to think like this (look at how good I am - they will lend me loads of money) and who has no grasp whatsoever of his liabilities

Listening to a US radio show last night, comment made - every dealership only has one selling strategy - how much can you affrod per moneth - then the sales patter for the blingest car at that outlay. 7 year terms on a 4 year old car - the finance overhanging the life of the car probably. Great untl the pruchaser's monthly budget gets busted by those unforseen additoinal costs, laughably paradade as growth by the banking sector.

Also another great comment abou tthe banks producing nothing, other than debt out of fresh air, that debt then being used to reduce the majority of the population to serfdom. The whole system needs ripping up, the bankers removed form their position of being able to write loans out of nothing. We'd then have a much greater chance of long term stability and true growth.

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Listening to a US radio show last night, comment made - every dealership only has one selling strategy - how much can you affrod per moneth - then the sales patter for the blingest car at that outlay. 7 year terms on a 4 year old car - the finance overhanging the life of the car probably. Great untl the pruchaser's monthly budget gets busted by those unforseen additoinal costs, laughably paradade as growth by the banking sector.

Also another great comment abou tthe banks producing nothing, other than debt out of fresh air, that debt then being used to reduce the majority of the population to serfdom. The whole system needs ripping up, the bankers removed form their position of being able to write loans out of nothing. We'd then have a much greater chance of long term stability and true growth.

Can we have some HPC first, for that 'loans out of nowhere' has been part of why house prices have risen to the heights they have. Or is it another Miko strategy; write off the debts and especially mortgages with borrowers keeping their homes, wipe out savers, and non-owners can go starve in the fields.

No one is forcing individuals to borrow on such terms for 4 year old cars. If I were selling such cars, I'd be looking at such terms to cover the risks, as there are likely to be defaults. People unwilling to buy an older car that, you know, is cheaper and they actually saved up for.

When financial institutions lend for consumer purchases such as cars, boats or homes, or for speculations such as the purchase of stock certificates, no production effort is tied to the loan. Interest payments on such loans stress some other source of income. Contrary to nearly ubiquitous belief, such lending is almost always counter-productive; it adds costs to the economy, not value.

If someone needs a cheap car to get to work, then a loan to buy it adds value to the economy; if someone wants a new SUV to consume, then a loan to buy it does not add value to the economy. Advocates claim that such loans "stimulate production," but they ignore the cost of the required debt service, which burdens production. They also ignore the subtle deterioration in the quality of spending choices due to the shift of buying power from people who have demonstrated a superior ability to invest or produce (creditors) to those who have demonstrated primarily a superior ability to consume (debtors).

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Listening to a US radio show last night, comment made - every dealership only has one selling strategy - how much can you affrod per moneth - then the sales patter for the blingest car at that outlay. 7 year terms on a 4 year old car - the finance overhanging the life of the car probably. Great untl the pruchaser's monthly budget gets busted by those unforseen additoinal costs, laughably paradade as growth by the banking sector.

Also another great comment abou tthe banks producing nothing, other than debt out of fresh air, that debt then being used to reduce the majority of the population to serfdom. The whole system needs ripping up, the bankers removed form their position of being able to write loans out of nothing. We'd then have a much greater chance of long term stability and true growth.

....because they are not interested one bit about the debt being repaid.....all they are interested in is selling the car/service/debt/house or whatever......to earn their own commission.....if people were personally accountable for the money they lent like claw back things would be rather different......the system can only work by people continuing to borrow growing amounts of money, always buying new stuff, using services, with a sprinkling of inflation so that knowing things will continue increasing in price, it incentives buy now pay later........but the problem is, it is the pay as you go stuff that is increasing in price now....all other stuff is deflating so you are better off saving, then buying because by the time you have saved the price of what you are saving for would have gone down.

.....you have £******** credit to spend, it's your money because you are worth it. ;)

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No one is forcing individuals to borrow on such terms for 4 year old cars. If I were selling such cars, I'd be looking at such terms to cover the risks, as there are likely to be defaults. People unwilling to buy an older car that, you know, is cheaper and they actually saved up for.

But it is a case of how pervasive and warping the debt model is. Who is the benefactor hrere, the customer, the dealership, the manufacturer. In 2008 customers and dealerships were taken out, GM got bailed, the banks were bailed and the big ones actually grew in influence form their bailout and takeover of smaller (mostly much more independent) competitiors.

If you look at housing the effect is far worse still - even if you do not participate you are forced to play in the same money pit, eother renting or buying. a limited resource.

The big benefator all the time is the banking and finance system around it.

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the childrens minister just said on R4 that councils have been under strain, but now we are emerging from a period of Austerity, things are going to get better.

recovery is a talking point.

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