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Why Millions Of People May Be Just 11 Days From Financial Ruin

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Worrying.

More than a third of adults could survive financially for only 11 days if they were to lose their job or be too ill to work, according to a survey.

The finding gives a worrying insight into the lives of millions who are living on a financial tightrope.

Researchers looked at how much people spend every month and how much they have in savings.

It found a massive gap between the two, which means most would be crippled by a sudden change in their circumstances.

The research involved interviews with more than 2,000 adults about their typical weekly spending and their accessible savings, which excludes pension.

http://www.dailymail.co.uk/news/article-10...ncial-ruin.html

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Savings as an issue has always troubled me in the way the stats are presented. We are IMHO similar to the US 'one wage packet from the gutter' in the UK. Most folk's apps I seen have next to no savings and I'm not just talking FTBs, who at least have deposits 9 times out of 10. Families appear to have no/very little savings, I'd say on average 3-5K is considered good, the other issues is they may have 20K savings but have 30K combined personal debts other than the mortgage :blink: These personal balance sheets are being weighed up by lenders now.

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Savings as an issue has always troubled me in the way the stats are presented. We are IMHO similar to the US 'one wage packet from the gutter' in the UK. Most folk's apps I seen have next to no savings and I'm not just talking FTBs, who at least have deposits 9 times out of 10. Families appear to have no/very little savings, I'd say on average 3-5K is considered good, the other issues is they may have 20K savings but have 30K combined personal debts other than the mortgage :blink: These personal balance sheets are being weighed up by lenders now.

I was having a conversation with a female relative of mine this week.

She seemed utterly incapable of comprehending my point that the first and most important person to get paid out of ones salary was oneself and that everyone else came second. If that meant that some other bill didn't get paid, then tough, I was telling her and she was looking at me like I had three heads*

* Yes, yes. I know.

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We like most families are in the same boat, we have savings but they are mainly tied up in shares, the price of which has plumeted recently and managed funds again not really the time to sell and they are our long term security.

I like to think we could keep our heads above water in a redundancy situation but anything else we'd sink like a brick as would most people I know.

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Me and my GF have about 10k savings between us, which would pay about 14 months rent with no other costs included. I only know two other people with any substantial savings to last them if they lost their jobs, and even we would struggle to last 6 months without benefits if we both got made redundant.

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Got made redundant 7 years ago lasted six months just about managed fianacially before getting new job was hard but a siege mentality took over and stopped spending on Crap. Spent time with some old boys who were retired enjoyed myself greatly chatting to them they had totally different mentality to younger people and remembered the war and after and having nothing but there was a great deal of togetherness even though I had no job felt I was under the least amount of pressure I had been for years. Think these days we have our priorities wrong even though im now well paid dont feel as happy as when I was struggling as not many people have the time of day for you

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Got my str fund , but do not want to raid that . Got made redundant two years ago got great pay off . However retrained and that took six months , then got a job paying much less than had been earning so spent most of my redundancy subsidizing my salary. Sold house December for two reasons one convinced it would drop , have been right there, two could not afford it any more. Got made redundant again end of June , starting new job in August however with rent and bills will have to borrow from str fund. Hoping that in time will be able to earn more and live on what I earn , and not dip into str fund. Just sick of not earning what i need to live . Could survive a good while on STR money but then it would be all gone . Not good position.

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i have enough savings to last about 10 years.....

but that would involve a tent, a sleeping bag, an empty field and lots and lots of free time :P

on a more serious note, most people have no conception of cashflow. i was talking to a relative who sold his business and is in a position to pay off a large chunk of his mortgage. he said he was going to put it all into the mortgage, ie no savings. i questioned this and made it clear it was a bad idea as if he lost his job or some other unforseen act he would be screwed and that he should keep enough in a savings account to last him at least 6 months.

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I have recently married a horse and she is always complaining about money. We are ok as long as she keeps finishing in the first 6 but she is getting older and more tired now.

We seek financial assistance from the labour government.

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I have recently married a horse and she is always complaining about money. We are ok as long as she keeps finishing in the first 6 but she is getting older and more tired now.

We seek financial assistance from the labour government.

:D

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I have recently married a horse and she is always complaining about money. We are ok as long as she keeps finishing in the first 6 but she is getting older and more tired now.

We seek financial assistance from the labour government.

Congratulations, I got an old nag as a mother in law, i'm going to make her into glue or dinner if it gets really bad

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a high % of people have always lived hand to mouth.

what is truely scary is how many people with massive financial commitments live in this position.

ie large mortgage and no savings and if 1 or both jobs go its over.

repo rate will climb and climb all over the western world just like in the us, will not be driven by subprime resets, it will be driven by massive unemployment as business shed staff just to survive.

the bizarre thing about the great depression was the randomness, stories say that about 10% of nz householders lost there property as there was and could be no gummint benefit that could pay the mortgage.

if you where the person who managed to keep their job you where ok. the unemployed formed a union in NZ and marched on parliment demanding jobs, they wanted to work to save their homes and famillies, not like todays dole bludging lazy bast*ards. police had to break up riots. was very tense gummint promised things but they never happened.

think about it after 20 years of boom times some of these lazy dole bludgers couldnt find or wouldnt find a job.... going to be very interesting over next 2-3 years.

the short of it is if you dont have savings you will lose you house if you lose you job... period!

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Declan to comment on this item today, he has just had a shout at 2 energy analysts because they told him fuel prices will go down in summner but back up again in winter. The intro on the BBC put the spin as most people 52days it's just that third of society on 11 days dragging the stats down.

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Should the title not be:

Credit: Why Millions May Be Just 11 Days From Financial Ruin

In all seriousness, this is how the situation strikes me. We surely would not be in this position if credit and borrowing did not exist or were at much lower levels? The problem I see is that, because we do have it, it is almost impossible for an 'average' person to get on in life without using it!

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A year ago we heard about soup kitchens in the US serving 'middle class' refugees from the housing crisis.

The US may not have welfare system to catch those that fall but if 50% of those that lose their jobs in the UK in the next year have personal debt benefits ain't gonna help with that. Bankruptcy, repossession, divorce, madness and death* will follow.

* Well OK, something of an exaggeration. Still, we could see up to half a million people with personal debts laid off and ruined in the backwash of the credit crunch. Hence reinforcing the credit crunch etc etc etc

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There are plenty of people whose attitude to impending financial doom is to apply for more credit cards. A friend of mine very smugly told me he had £50,000 in "savings", ie, he'd applied for enough cards to have a £50K total limit. He was genuinely very reassured by having this financial cushion. :o

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quite, Its not the lack of savings that will kill, its the DEBT.

Benefits take no account of debt, so youd better pay the phone bill and deal with the creditors- some will cooperate, some wont, either way, you are likely to be be in more debt than when you started your holiday from work.

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We could survive for at least a year, with some reining in, for which we have considerable room. And that's if we had no work whatsoever. We're both freelance, so while we've been expecting things to quieten down, it's unlikely we'll get no work at all - and we may even pick up work thanks to other people's redundancy.

It makes me laugh that friends of mine have a completely skewed view of us - asking us if we're getting enough business to get by, voicing the assumption that we live in 'social housing' (we pay full market rent for a flat we love on an estate that presumably they regard as rather scummy).

We're clearly much better off than we appear simply because we've refused to get sucked into the credit-driven consumer bingeing of recent years. I love it that because we're debt-free we're probably among the richest people we know - much richer than all those friends who've looked so much more successful than us, simply by virtue of having mortgages of hundreds of thousands of pounds around their necks!

What's that saying about seeing who's swimming naked only when the tide goes out?

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quite, Its not the lack of savings that will kill, its the DEBT.

Benefits take no account of debt, so youd better pay the phone bill and deal with the creditors- some will cooperate, some wont, either way, you are likely to be be in more debt than when you started your holiday from work.

Unemployment cover can be bought for £3 per hundred pounds worth of benefit.

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Unemployment cover can be bought for £3 per hundred pounds worth of benefit.

And PPI can be bought for even more apparently.

And there is usually a time lag, and many people do not qualify, and you dont get any benefit, its there to cover the lender, and its the minimum payment, and it only last a set number of weeks, and many people live hand to mouth and cant even afford that.

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Unemployment cover can be bought for £3 per hundred pounds worth of benefit.

Not much use when the banks and the insurers go bust though, eh?

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What's that saying about seeing who's swimming naked only when the tide goes out?

Warren Buffet, I believe. I think he has enough savings for a year or two :)

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Not much use when the banks and the insurers go bust though, eh?

Insurance is cover for £2000 per claim 100% and 90% of unlimited claim by the FSCS, it's a little bit more robust than savers protection. I suppose you would just have to pick your insurer wisely.

Most unemployment cover is reinsured by Hitachi anyway and Japan have already had their bust.

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  • 399 Brexit, House prices and Summer 2020

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      • down 5% +
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      • up 5%



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