Jump to content
House Price Crash Forum
interestrateripoff

40% have less than 100 in savings

Recommended Posts

I reckon they are buying too many iPhones. 

On a more serious note, I would think that those under water with credit card debts and bank loans will make an equal if not greater percent 

Share this post


Link to post
Share on other sites
12 minutes ago, One-percent said:

I reckon they are buying too many iPhones. 

On a more serious note, I would think that those under water with credit card debts and bank loans will make an equal if not greater percent 

The article recommends 2-3 months slush money. Quite frankly, I'd have sleepless nights if I had that little. I'd save hard and go without to achieve more.

Paul Lewis on R4 today interviewed 2 people who used pay day lenders. My heart genuinely went out to them both.

But one interviewee said they took out a pay day loan each Xmas for £500 to pay for Xmas for their family, and it then took them until Xmas the following year to pay it off, when they took out another Xmas loan.

Given they must pay £500 many times over to clear the debt, I wondered why they didn't just miss one Xmas, save what they'd have paid to clear the loan and then always be ahead of themselves for Xmas. I clearly have a very different psyche. And you can still have fun at Xmas without spending £500.

Edited by LiveinHope

Share this post


Link to post
Share on other sites
17 minutes ago, 200p said:

We are rich - look at all those new cars on the road, and all those high value properties in the EA windows.

All of which are owned outright, of course! ;)

Share this post


Link to post
Share on other sites

I regularly end up sitting in offices and overhear conversations about how people are skint until payday etc. These are office staff, in steady jobs generally, sometimes in finance departments etc. Always amazes me at how they can live hand to mouth like that. Can't really say anything as I'm an external entity.

Stories my GF brings back from her place of work amaze me less, as she works with staff who are younger and generally lower paid. She generally has to play along to not be singled out as she has savings and spends very little. I don't think I would keep quiet, I'd call them all idiots :P  

Share this post


Link to post
Share on other sites
1 hour ago, LiveinHope said:

The article recommends 2-3 months slush money. Quite frankly, I'd have sleepless nights if I had that little. I'd save hard and go without to achieve more.

Paul Lewis on R4 today interviewed 2 people who used pay day lenders. My heart genuinely went out to them both.

But one interviewee said they took out a pay day loan each Xmas for £500 to pay for Xmas for their family, and it then took them until Xmas the following year to pay it off, when they took out another Xmas loan.

Given they must pay £500 many times over to clear the debt, I wondered why they didn't just miss one Xmas, save what they'd have paid to clear the loan and then always be ahead of themselves for Xmas. I clearly have a very different psyche. And you can still have fun at Xmas without spending £500.

I feel it is incredibly complex.  There will be a lot of people who are genuinely poor and so cannot save. The bigger issue though is how we view money and debt. The last car I bought was six or seven years ago and the dealer could not understand why I wanted to pay cash.  I could not understand why he kept waffling on about monthly payments. Tptb have managed to convince a lot of people that they can live month to month and have lots of shiny toys as long as they can meet the monthly payments.

i was brought up with the saying 'if you can't pay one week one week, you can't pay two the next.  Credit and debt were really frowned on.  I'm pleased that not only have I been unable to shake this view but that I have also,instilled it in my children.

Like you, I would not sleep well if I did not have the means to support myself for a while if it all went Pete tong

Share this post


Link to post
Share on other sites
6 minutes ago, One-percent said:

I feel it is incredibly complex.  There will be a lot of people who are genuinely poor and so cannot save. The bigger issue though is how we view money and debt. The last car I bought was six or seven years ago and the dealer could not understand why I wanted to pay cash.  I could not understand why he kept waffling on about monthly payments. Tptb have managed to convince a lot of people that they can live month to month and have lots of shiny toys as long as they can meet the monthly payments.

i was brought up with the saying 'if you can't pay one week one week, you can't pay two the next.  Credit and debt were really frowned on.  I'm pleased that not only have I been unable to shake this view but that I have also,instilled it in my children.

Like you, I would not sleep well if I did not have the means to support myself for a while if it all went Pete tong

I agree, and I'm not picking holes in your argument, but the interviewee who borrowed £500 each Xmas clearly had enough spare cash to clear the interest on the loan each year; they admitted in the interview that they didn't like to think how much it cost them. All they needed was the discipline to go without 'just once'. I think that is what we have lost, patience. We've been persuaded to keep up with the Jones', who are having everything on tick.

Share this post


Link to post
Share on other sites
2 minutes ago, LiveinHope said:

I agree, and I'm not picking holes in your argument, but the interviewee who borrowed £500 each Xmas clearly had enough spare cash to clear the interest on the loan each year; they admitted in the interview that they didn't like to think how much it cost them. All they needed was the discipline to go without 'just once'. I think that is what we have lost, patience. We've been persuaded to keep up with the Jones', who are having everything on tick.

Totally agree with you which was the point of my second point 'if you can't pay one week...'. It probably got lost in translation. Thick Yorkshire dialect that is. :lol:  if you need something then just save for it then buy it.  And 500 quid on Christmas. Madness 

Share this post


Link to post
Share on other sites
1 hour ago, LiveinHope said:

The article recommends 2-3 months slush money. Quite frankly, I'd have sleepless nights if I had that little. I'd save hard and go without to achieve more.

Paul Lewis on R4 today interviewed 2 people who used pay day lenders. My heart genuinely went out to them both.

But one interviewee said they took out a pay day loan each Xmas for £500 to pay for Xmas for their family, and it then took them until Xmas the following year to pay it off, when they took out another Xmas loan.

Given they must pay £500 many times over to clear the debt, I wondered why they didn't just miss one Xmas, save what they'd have paid to clear the loan and then always be ahead of themselves for Xmas. I clearly have a very different psyche. And you can still have fun at Xmas without spending £500.

 

 

You say that, but I work on the basis that I can easily get credit if I needed it, and that it is better to leave money in my pension or ISAs than in liquid readies with no interest.  My house costs about £7k per month to run, so I'm b'uggered if  I'm leaving £21k in a current account earning zero interest.

Share this post


Link to post
Share on other sites
1 minute ago, Mikhail Liebenstein said:

 

 

You say that, but I work on the basis that I can easily get credit if I needed it, and that it is better to leave money in my pension or ISAs than in liquid readies with no interest.  My house costs about £7k per month to run, so I'm b'uggered if  I'm leaving £21k in a current account earning zero interest.

I guess I would see money in my isa as part of a slush fund that I could draw on in emergencies. No way have I got loads sitting in an account not paying interest. Mind some of them are paying incredibly low interest. :(

Share this post


Link to post
Share on other sites
1 minute ago, Mikhail Liebenstein said:

 

 

You say that, but I work on the basis that I can easily get credit if I needed it, and that it is better to leave money in my pension or ISAs than in liquid readies with no interest.  My house costs about £7k per month to run, so I'm b'uggered if  I'm leaving £21k in a current account earning zero interest.

I never said it has to be in a current account, it just needs to be accessible. I've often had a year of more without any pay before a new venture comes good. And fortunately, my house costs less than 7k a year.

Share this post


Link to post
Share on other sites
1 hour ago, One-percent said:

I guess I would see money in my isa as part of a slush fund that I could draw on in emergencies. No way have I got loads sitting in an account not paying interest. Mind some of them are paying incredibly low interest. :(

I've opened up loads of current accounts and regular savers moving money from low intetest accounts to slightly higher low interest accounts. Probably avg about 2.5%.

Share this post


Link to post
Share on other sites
1 hour ago, One-percent said:

I feel it is incredibly complex.  ................ I could not understand why he kept waffling on about monthly payments....

...he/she's after a commission fee on the loan......:rolleyes:

Share this post


Link to post
Share on other sites
Just now, interestrateripoff said:

I've opened up loads of current accounts and regular savers moving money from low intetest accounts to slightly higher low interest accounts. Probably avg about 2.5%.

Frankly irro I've given up.  I spent a lot of time when Interest rates started going down shuffling money.  Rates are so low you need to have a LOT of cash to make it worthwhile 

Share this post


Link to post
Share on other sites
2 minutes ago, South Lorne said:

...he/she's after a commission fee on the loan......:rolleyes:

I did think,that at the time but have now come round to the view that hardly anyone actually pays for anything now.  The default position seems to be buy on tick.  Actually wanting to pay for something just does not compute 

Share this post


Link to post
Share on other sites
8 minutes ago, One-percent said:

I did think,that at the time but have now come round to the view that hardly anyone actually pays for anything now.  The default position seems to be buy on tick.  Actually wanting to pay for something just does not compute 

...there is no advantage to the salesman to take cash if he can persuade you to take credit ...an easy sell...while inflation and interest rates are low...for the time being ..watch this space...:rolleyes:

Share this post


Link to post
Share on other sites
3 hours ago, LiveinHope said:

Given they must pay £500 many times over to clear the debt, I wondered why they didn't just miss one Xmas, save what they'd have paid to clear the loan and then always be ahead of themselves for Xmas. I clearly have a very different psyche. And you can still have fun at Xmas without spending £500.

Its a tax on the poor more specifically on the uneducated poor. I saw some program on doorsstep loans  a while ago and the scale of it was truly shocking, short term high interest loans to poor people is a massive industry and yet a net loss to the economy I would think.  Not really sure what the solution is though - you cant outlaw it because itl just go onto the black market which would be even worse.

Edited by goldbug9999

Share this post


Link to post
Share on other sites
3 minutes ago, goldbug9999 said:

Its a tax on the poor more specifically on the uneducated poor. I saw some program on doorsstep loans  a while ago and the scale of it was truly shocking, short term high interest loans to poor people is a massive industry and yet a net loss to the economy I would think.  Not really sure what the solution is though - you cant outlaw it because itl just go onto the black market which would be even worse.

Yes, it's truly shocking and a scandal.

The country is filling with shysters looking to extort from the vulnerable and the worried, whether its pay day loans, renting white goods, new goods insurance, fines from private parking companies, leasehold newbuilds, utilities insurance scams (are your pipes covered) etc, etc, etc.

Share this post


Link to post
Share on other sites

I would never take Daily Mail articles at face value. I'll let the editorial efforts speak for themselves: "A House of Lords committee revealed that 40 per cent of the working-age population held than £100 in savings."

Yes, it's just a missing word, just a typo but there appears to be one in every other "article".

I tried investigating further.  While Daily Mail article appears to quote correct numbers, I am slightly skeptical about the survey results themselves.

The source of the information appears to be here:

https://www.moneyadviceservice.org.uk/en/corporate/press-release-low-savings-levels-put-millions-at-financial-risk

This BBC article looked particularly interesting to me due to its dodgier-than-Daily-Mail paragraph: "The research was carried out for MAS by the consumer data company CACI which has a database of 48m UK adults".  BBC: Millions have less than £100 in savings, study finds

I read the BBC article and thought that sounds like a massive sample.  Do they have me in that database? Did I participate in that survey as well?!  However, digging further suggests that the sample size of working age people was only 2789 (page 48 of document below)!

https://prismic-io.s3.amazonaws.com/fincap-two%2Fd08746d1-e667-4c9e-84ad-8539ce5c62e0_mas_fincap_uk_survey_2015_aw.pdf 

To summarise:

- I cannot find the exact source of 40% under £100 statistic it's probably consistent the quite small sample size investigation carried out

- One of infographics sadly appears to suggest that renters have the least in savings

- It's not clear whether these savings are net of loans, student loans, mortgages, credit cards

I could be barking up a number of wrong trees here but I just don't trust the Daily Mail after its series of "Fiendishly difficult" puzzles where the sleeping sheep is the first thing I see!

Edited by Bear Hug

Share this post


Link to post
Share on other sites
6 hours ago, South Lorne said:

...there is no advantage to the salesman to take cash if he can persuade you to take credit ...an easy sell...while inflation and interest rates are low...for the time being ..watch this space...:rolleyes:

What are they buying?

Maybe they need to be bossed around by superiors who can them what they can and can't do with their own lives.

"Don't get that LCD TV on credit.  Get old one cheap."

"Errr.... who do you think you are?"

Share this post


Link to post
Share on other sites
6 hours ago, Bear Hug said:

I would never take Daily Mail articles at face value. I'll let the editorial efforts speak for themselves: "A House of Lords committee revealed that 40 per cent of the working-age population held than £100 in savings."

Yes, it's just a missing word, just a typo but there appears to be one in every other "article".

I tried investigating further.  While Daily Mail article appears to quote correct numbers, I am slightly skeptical about the survey results themselves.

So am I.

How many years have we had articles about lack of savings, or one pay-day from disaster...... vs ever more surges of HPI.

Share this post


Link to post
Share on other sites
12 hours ago, LiveinHope said:

The article recommends 2-3 months slush money. Quite frankly, I'd have sleepless nights if I had that little. I'd save hard and go without to achieve more.

Paul Lewis on R4 today interviewed 2 people who used pay day lenders. My heart genuinely went out to them both.

But one interviewee said they took out a pay day loan each Xmas for £500 to pay for Xmas for their family, and it then took them until Xmas the following year to pay it off, when they took out another Xmas loan.

Given they must pay £500 many times over to clear the debt, I wondered why they didn't just miss one Xmas, save what they'd have paid to clear the loan and then always be ahead of themselves for Xmas. I clearly have a very different psyche. And you can still have fun at Xmas without spending £500.

You're greatly underestimating the immense stupidity of most people.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

  • Recently Browsing   0 members

    No registered users viewing this page.

  • The Prime Minister stated that there were three Brexit options available to the UK:   100 members have voted

    1. 1. Which of the Prime Minister's options would you choose?


      • Leave with the negotiated deal
      • Remain
      • Leave with no deal

    Please sign in or register to vote in this poll. View topic


×

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.