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electrogear

Extremely leveraged idiots

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I had an enlightening conversation today with a work colleague. I'd suspected for a while that he must be in debt if his bragging was true regarding his expensive spending habits but I hadn't realised quite how bad it was. He is one of these people who drops how much something cost into every conversation - His Audi, his BMW, how much he's spent on the kids for christmas, how much his wife's spent on the christmas dinner, iPads, phones, sound systems etc etc (yawn). We earn decent salaries (in the region 70-80K) so it's not unthinkable that he would own these things (I do too in moderation) but he lives way outside of his means, taking his wife and kids out for tea to Michelin star restaurants twice a week, using the mantra "if it costs a lot it's better" and having everything now rather than when he can afford it. He doesn't bother finding a good price for something, he'd "rather pay retail than faffing around trying to save a few quid" - case in point, an oak dining table and chairs last month £2000 on finance. We paid £100 for our solid oak table from a Wren returns outlet and £45/chair from an online company. I call it being sensible, he looks down his nose at me for it and calls me tight. "At the end of the day our coffins will be the same size", I said, "so stay humble". That's not strictly true though because he's a fat b8^5Rd - must be all the fine wine and cheese!

Anyway, eventually between three of us we got talking about credit cards and mortgages. I don't have any debt at all (no credit cards, no mortgage, no car lease or payments of any sort) - just a student loan which I'm due to pay off in Dec. The other guy has a new kitchen on 0% finance but other than that lives pretty well within his means and has some savings. Obviously, being a serious black-catter our financial mess of a colleague had to brag that he had waaaaay more debt than us both put together. It transpires that he's got £35,000 on credit cards, two car leases, and a £125K mortgage. He's lived in his house (a very small 3 bed on a new build estate) for 3 years and has only around £15,000 equity. He didn't tell me all of this directly but I'd sussed it out because he said he wanted to remortgage but was waiting until he had 85%LTV. After tax he takes home £3500 per month. His monthly credit outgoings (credit cards, mortgage, cars) is a whopping £2200! With food shopping and other monthly bills he admits he struggles to get by without doing overtime. I pointed out that if his interest rate on his SVR mortgage or credit cards go up he'll be screwed. He reckons life's too short to worry about that...

It was quite a satisfying moment for me because earlier in the week he'd been calling me "tight" because I'd said that I thought £60/head was expensive for a meal out.

Anyone got a similar story?

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3 minutes ago, electrogear said:

I had an enlightening conversation today with a work colleague. I'd suspected for a while that he must be in debt if his bragging was true regarding his expensive spending habits but I hadn't realised quite how bad it was. He is one of these people who drops how much something cost into every conversation - His Audi, his BMW, how much he's spent on the kids for christmas, how much his wife's spent on the christmas dinner, iPads, phones, sound systems etc etc (yawn). We earn decent salaries (in the region 70-80K) so it's not unthinkable that he would own these things (I do too in moderation) but he lives way outside of his means, taking his wife and kids out for tea to Michelin star restaurants twice a week, using the mantra "if it costs a lot it's better" and having everything now rather than when he can afford it. He doesn't bother finding a good price for something, he'd "rather pay retail than faffing around trying to save a few quid" - case in point, an oak dining table and chairs last month £2000 on finance. We paid £100 for our solid oak table from a Wren returns outlet and £45/chair from an online company. I call it being sensible, he looks down his nose at me for it and calls me tight. "At the end of the day our coffins will be the same size", I said, "so stay humble". That's not strictly true though because he's a fat b8^5Rd - must be all the fine wine and cheese!

Anyway, eventually between three of us we got talking about credit cards and mortgages. I don't have any debt at all (no credit cards, no mortgage, no car lease or payments of any sort) - just a student loan which I'm due to pay off in Dec. The other guy has a new kitchen on 0% finance but other than that lives pretty well within his means and has some savings. Obviously, being a serious black-catter our financial mess of a colleague had to brag that he had waaaaay more debt than us both put together. It transpires that he's got £35,000 on credit cards, two car leases, and a £125K mortgage. He's lived in his house (a very small 3 bed on a new build estate) for 3 years and has only around £15,000 equity. He didn't tell me all of this directly but I'd sussed it out because he said he wanted to remortgage but was waiting until he had 85%LTV. After tax he takes home £3500 per month. His monthly credit outgoings (credit cards, mortgage, cars) is a whopping £2200! With food shopping and other monthly bills he admits he struggles to get by without doing overtime. I pointed out that if his interest rate on his SVR mortgage or credit cards go up he'll be screwed. He reckons life's too short to worry about that...

It was quite a satisfying moment for me because earlier in the week he'd been calling me "tight" because I'd said that I thought £60/head was expensive for a meal out.

Anyone got a similar story?

No, a question though. How does someone so stupid end up landing an 80k job?

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3 minutes ago, One-percent said:

No, a question though. How does someone so stupid end up landing an 80k job?

I am constantly asking myself the same question but he's not the only one! He joined the company as an electrical contractor and somehow slipped under the radar and onto our payroll a few years back when the offshore game was struggling for numbers, but since then the oil price has crashed, projects have been canned, and there's a surplus of staff but now he's "in" there's no getting rid. He freely admitted to me the other day that he doesn't understand the theory behind electricity but he knows how to measure the voltage with his meter. :rolleyes: To give you a clue to his "type" - he talks over everybody at twice the volume, skin head, tattoos, thinks "ex on the beach" makes good TV, and when his intellect is exhausted (almost immediately) resorts to bashing, name calling, and on occasion physical violence (although not in the workplace, yet).

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2 minutes ago, electrogear said:

I am constantly asking myself the same question but he's not the only one! He joined the company as an electrical contractor and somehow slipped under the radar and onto our payroll a few years back when the offshore game was struggling for numbers, but since then the oil price has crashed, projects have been canned, and there's a surplus of staff but now he's "in" there's no getting rid. He freely admitted to me the other day that he doesn't understand the theory behind electricity but he knows how to measure the voltage with his meter. :rolleyes: To give you a clue to his "type" - he talks over everybody at twice the volume, skin head, tattoos, thinks "ex on the beach" makes good TV, and when his intellect is exhausted (almost immediately) resorts to bashing, name calling, and on occasion physical violence (although not in the workplace, yet).

Ah, sounds like oil and gas?

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1 minute ago, One-percent said:

Ah, sounds like oil and gas?

Yep, but we're not all like that. I'd say 50/50 idiots/decent people. The conditions can be crap, the days are long, but I work 2 weeks away for 3 weeks at home which gives me more quality time with the family than a 9-5, and I get about 40% additional pay when compared to the same job on land, so despite the emotional rollercoaster (leaving my wife and 2 year old girl is heart wrenching - every time) the benefits far outweigh the negatives for me.

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4 hours ago, electrogear said:

I had an enlightening conversation today with a work colleague. I'd suspected for a while that he must be in debt if his bragging was true regarding his expensive spending habits but I hadn't realised quite how bad it was. He is one of these people who drops how much something cost into every conversation - His Audi, his BMW, how much he's spent on the kids for christmas, how much his wife's spent on the christmas dinner, iPads, phones, sound systems etc etc (yawn). We earn decent salaries (in the region 70-80K) so it's not unthinkable that he would own these things (I do too in moderation) but he lives way outside of his means, taking his wife and kids out for tea to Michelin star restaurants twice a week, using the mantra "if it costs a lot it's better" and having everything now rather than when he can afford it. He doesn't bother finding a good price for something, he'd "rather pay retail than faffing around trying to save a few quid" - case in point, an oak dining table and chairs last month £2000 on finance. We paid £100 for our solid oak table from a Wren returns outlet and £45/chair from an online company. I call it being sensible, he looks down his nose at me for it and calls me tight. "At the end of the day our coffins will be the same size", I said, "so stay humble". That's not strictly true though because he's a fat b8^5Rd - must be all the fine wine and cheese!

Anyway, eventually between three of us we got talking about credit cards and mortgages. I don't have any debt at all (no credit cards, no mortgage, no car lease or payments of any sort) - just a student loan which I'm due to pay off in Dec. The other guy has a new kitchen on 0% finance but other than that lives pretty well within his means and has some savings. Obviously, being a serious black-catter our financial mess of a colleague had to brag that he had waaaaay more debt than us both put together. It transpires that he's got £35,000 on credit cards, two car leases, and a £125K mortgage. He's lived in his house (a very small 3 bed on a new build estate) for 3 years and has only around £15,000 equity. He didn't tell me all of this directly but I'd sussed it out because he said he wanted to remortgage but was waiting until he had 85%LTV. After tax he takes home £3500 per month. His monthly credit outgoings (credit cards, mortgage, cars) is a whopping £2200! With food shopping and other monthly bills he admits he struggles to get by without doing overtime. I pointed out that if his interest rate on his SVR mortgage or credit cards go up he'll be screwed. He reckons life's too short to worry about that...

It was quite a satisfying moment for me because earlier in the week he'd been calling me "tight" because I'd said that I thought £60/head was expensive for a meal out.

Anyone got a similar story?

 

Some people are just bad with money. Worked with someone similar. whatever they earn they spend. Each to their own.

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Relative of mine, German cars on finance, big mortgage, credit card debt and combined salary of approx 120k. Him and wife are early 40's...

We were recently discussing debt, houses etc and he informed me that if he and the wife sold everything and paid all debt, their combined worth would be 3k a piece.

Just put a new kitchen on the mortgage too.  To all outside looking in they appear successful people living the middle class dream - but it's just an illusion.  

I live like a pauper, earn more than both and am looking to retire in 8 years.  I too am 'tight'.  There was a time that being careful with money was seen as a positive thing.

On a side note what is it with oil and gas?  I've met 2 people who work offshore and they are both egomaniacs.  Form reading this forum it would appear my experience is not unique?

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20 hours ago, electrogear said:

 To give you a clue to his "type" - he talks over everybody at twice the volume, skin head, tattoos, thinks "ex on the beach" makes good TV, and when his intellect is exhausted (almost immediately) resorts to bashing, name calling, and on occasion physical violence (although not in the workplace, yet).

I wonder if he can afford to keep up the charade when he retires?

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I used to work in the Rail industry which does seem to pay well. I think it's on it's way to being the next oil and gas for pay and attracting c*nts to join.

Anyway someone I used to work for had a senior position in one of the routes. He was on about £65k which was underpaid for that level of job but a lot more than he was worth. He had managed to get his wife into a job there where she was receiving £30k a year, both gross figures in both senses. They had bought a former council house in Swindon on a 100% interest only mortgage. They'd lived in that for 5 years and then moved on buying a new house with a 5% deposit on of the earlier government schemes, they could only afford to buy it with a 5% deposit (about £10k) which they put on a loan. The old house they kept on as BTL but the rent didn't cover the mortgage and at the time there was bugger all capital gain in that part of Swinetown. The new house they bought wasn't all that nice or that expensive, it shocked a few of us how they could seemingly earn so much but struggled to get the money together for an average house. Both he and his wife liked to spend and talk up their wealth, everything they had they claimed was the best and they'd always managed to get it at a huge discount etc. from watches, £500 shoes, even down to £20/pair for socks. From what I knew of their finances they both had £10k+ each on credit cards, a similar amount on loans, approximately £350,000 in mortgages. After a while he moved onto a more senior and better paid job, this was first announced by purchasing a brand new BMW long before he started in the new role or started getting the salary. 

It seemed to me that he was always spending one step ahead of a promotion. From day to day I could see the stress that came from having no cash and moving money around. 

 

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