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Have you come into contact with anyone who is openly in financial pain because of Covid


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1 senior exec at US IT company, made redundant now in full blown panic mode 

1 pilot, took a pay cut, has openly argued with his wife in front of me about money/holidays. Knows half a dozen people who've been made redundant. 

1 IT contractor now out of work. 

1 management type contractor out of work all year, reality starting to hit

1 financial sector contractor, out on his ear come Christmas, openly admits they're financially screwed. 

1 in advertising now working like a dog because he'll be sacked if he doesn't and will have no chance pf any work. 

Asda delivery man was an out of work sparky. 

1 furloughed friend handing back their audi a3

Cousin of mine lost sales job, no sure how they'll cope financially. 

How bad is it for you or friends ? 

Are people able to keep their heads above water or is the shoot about to hit the fan for people? 

All in all I'm not seeing any pain but definitely looks to be in the pipeline. 

Only people i know who are carefree are teachers

 

We've spent more this year on stuff but have saved a small fortune on petrol costs. We won't ski this year which saves a small fortune so overall better off.

Edited by TheCountOfNowhere
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I have heard many people espouse that only those in the cheep seats are at risk, but I beg to differ, those seemingly affordable mortgages that were taken on don't pay themselves when the money stops rolling in.

Most people I work with are distinctly middle class, 30 - 50 with a few kids, only one has confided in me how tight things are at the moment and it doesn't sound good for them. Previously these people were only too keen to talk about their family skiing holiday in Switzerland, their new car, the next kitchen and how lovely and valuable their house was. 

All of that has stopped ....

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We've spent more this year on stuff but have saved a small fortune on petrol costs. We won't ski this year which saves a small fortune so overall better off.

Similar here, the big ticket items are gone (holidays etc).

Job wise I feel reasonably safe, and equally I am still being headhunted. 

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1 senior exec at US IT company, made redundant now in full blown panic mode 

1 pilot, took a pay cut, has openly argued with his wife in front of me about money/holidays. Knows half a dozen people who've been made redundant. 

1 IT contractor now out of work. 

1 management type contractor out of work all year, reality starting to hit

1 financial sector contractor, out on his ear come Christmas, openly admits they're financially screwed. 

1 in advertising now working like a dog because he'll be sacked if he doesn't and will have no chance pf any work. 

Asda delivery man was an out of work sparky. 

1 furloughed friend handing back their audi a3

Cousin of mine lost sales job, no sure how they'll cope financially. 

How bad is it for you or friends ? 

Are people able to keep their heads above water or is the shoot about to hit the fan for people? 

All in all I'm not seeing any pain but definitely looks to be in the pipeline. 

Only people i know who are carefree are teachers

 

We've spent more this year on stuff but have saved a small fortune on petrol costs. We won't ski this year which saves a small fortune so overall better off.

Nice to be wanted.;)

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I have heard many people espouse that only those in the cheep seats are at risk, but I beg to differ, those seemingly affordable mortgages that were taken on don't pay themselves when the money stops rolling in.

Most people I work with are distinctly middle class, 30 - 50 with a few kids, only one has confided in me how tight things are at the moment and it doesn't sound good for them. Previously these people were only too keen to talk about their family skiing holiday in Switzerland, their new car, the next kitchen and how lovely and valuable their house was. 

All of that has stopped ....

That's another issue with high house prices, that £2k a month 400k mortgage becomes an incredible weight round peoples necks when things get tough. 

I doubt theyll ever get so tough. 

 

South East england have not faced such a recession before. 

 

All this and interest rates could rise sharply if the £ collapses. 

Id rather be worried about my money in the bank than debt owed to the banks 

Edited by TheCountOfNowhere
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Yep. One works for a bank, redundancies happening and pay cuts for those that survive.  Husband BA, told to sign new contract by Dec which has 20% pay cut plus 6 weeks unpaid each year or be made redundant.  Already taken 6 month mortgage holiday.  Ends wont meet if both get a pay cut.  5 figures in credit card debt i think 40k ish..... frittered on crap.

Another a big management consultant. 6 figure salary. Let go in April, nothing since.  Kids in private school. Panicking.

 

 

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Yep. One works for a bank, redundancies happening and pay cuts for those that survive.  Husband BA, told to sign new contract by Dec which has 20% pay cut plus 6 weeks unpaid each year or be made redundant.  Already taken 6 month mortgage holiday.  Ends wont meet if both get a pay cut.  5 figures in credit card debt i think 40k ish..... frittered on crap.

Another a big management consultant. 6 figure salary. Let go in April, nothing since.  Kids in private school. Panicking.

 

 

40k in credit card debt!!! 

How can folks live like this. 

This is what divorces are made of. 

 

2021 is going to be a crazy year 

 

Edited by TheCountOfNowhere
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Like any recession, if you and your partner are in a salaried job, you have no real difference. The bloodbath doesn't affect you until you actually lose your job. In fact, this recession makes some people better as they have saved on childcare, commuting and overseas holidays.

The real difficulty will be for the "high incoming - high outgoing" households if there is disruption there. £8k a month coming in, £7.5k a month going out doesn't leave a lot of wriggle room.

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That's another issue with high house prices, that £2k a month 400k mortgage becomes an incredible weight round peoples necks when things get tough. 

I doubt theyll ever get so tough. 

 

South East england have not faced such a recession before. 

 

All this and interest rates could rise sharply if the £ collapses. 

Id rather be worried about my money in the bank than debt owed to the banks 

If the Pound collapses, I'll be able to retire.

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2 of my uncles, both black cab drivers. Although not necessarily in financial pain as one owns their house outright and both received £120k inheritance 3 years ago. 

Gone from earning 00s of £ per day to basically nothing. 

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Like any recession, if you and your partner are in a salaried job, you have no real difference. The bloodbath doesn't affect you until you actually lose your job. In fact, this recession makes some people better as they have saved on childcare, commuting and overseas holidays.

The real difficulty will be for the "high incoming - high outgoing" households if there is disruption there. £8k a month coming in, £7.5k a month going out doesn't leave a lot of wriggle room.

From £8k a month to £0k a month destroys people, even the ones with 100k in the bank

 

Then there's the savvy ones who'll have invested in BTL, who's tennants no longer can pay the rents or have vacated. 

There's a lot to be said for being frugal during the good years and enjoying the bad. 

 

Its almost party time for us HPCers

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Not heard from anyone yet. Perversely division of the company my wife works for was aquired from 1 massive USA PLC (household name, one of the oldest PLC going) by another big USA PLC for multi tens of  $$Billions.  Now they new company has been formed Since April as a division of the holding company, ih the healthcare / biopharma industry, they are flying, due to increased medical needs from Covid and that they are also making components of Covid drugs for Trump administration. 

They are absolutely flat out and smashing it. Full work from home / full pay / now back in the office 3 days a week, home for 2.  No worries at all. But as i control the cash in the household i have been keeping use frugal. 

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40k in credit card debt!!! 

How can folks live like this. 

This is what divorces are made of. 

 

2021 is going to be a crazy year 

 

I know! They faced redundancy risk a few years back. She was offered 50k Redundancy but didn't take it as worried about getting another job (in their 50s no qualification bar o levels,)  anyway I said take redundancy, pay off most of their mortgage and work part time etc. They ve had this mortgage 20 years so I thought this would be realistic.  Nope she said there would be only a few thousand left after debts.   Mortgage still has 15 years left as kept consolidating debts!!!

We could not live like this.  

 

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I know! They faced redundancy risk a few years back. She was offered 50k Redundancy but didn't take it as worried about getting another job (in their 50s no qualification bar o levels,)  anyway I said take redundancy, pay off most of their mortgage and work part time etc. They ve had this mortgage 20 years so I thought this would be realistic.  Nope she said there would be only a few thousand left after debts.   Mortgage still has 15 years left as kept consolidating debts!!!

We could not live like this.  

 

What could the downside have possibly been of pushing central back debt like cocaine to all and sundry.

So glad that Mark Carney was so vigilant.

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What could the downside have possibly been of pushing central back debt like cocaine to all and sundry.

So glad that Mark Carney was so vigilant.

Do you see he's sold his massive London house. 

 

Full asking price of course. 

I wonder if a grateful friend purchased it off him. 

 

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From £8k a month to £0k a month destroys people, even the ones with 100k in the bank

 

Then there's the savvy ones who'll have invested in BTL, who's tennants no longer can pay the rents or have vacated. 

There's a lot to be said for being frugal during the good years and enjoying the bad. 

 

Its almost party time for us HPCers

The Ant and the Grasshopper.

I was thinking of the consultants/contractors/self-employed who find the money stream drying up slightly. Not a complete drop in work, but a 20% drop in rates here, a 4 day week here. Several months between projects, when previously it was weeks. Enough to put you from being in the black each month, to being in the red. 

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Where is the evidence?  He was renting here in West Hampstead. 

I thought he rented too...

 

Seems not

 

https://www.google.com/amp/s/uk.finance.yahoo.com/amphtml/news/mark-carney-sells-55-m-hampstead-home-postlockdown-093131966.html

 

 

Makes one wonder about his motives for pushing up house prices. 

 

#### should be jailed

 

 

 

 

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The Ant and the Grasshopper.

I was thinking of the consultants/contractors/self-employed who find the money stream drying up slightly. Not a complete drop in work, but a 20% drop in rates here, a 4 day week here. Several months between projects, when previously it was weeks. Enough to put you from being in the black each month, to being in the red. 

Wont be so bad in such cases if the things pick up and they have savings. 

Unless of course they're up to their necks in property... 

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  • 439 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% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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