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Malthus

Attitude On Debt

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Hi Guys

Not sure if you've discussed this before .

interested to know your attitude to debt .

have always been debt adverse and tried only to borrow to buy houses & cars ( 1 of each at a time )

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the sheeple have no concept of debt management.....to them it's buy now and pay.....whenever we can later

I'm of the opinion that debt is necessary evil in this world as it playing out now for all to see with the banking crisis unfolding

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the sheeple have no concept of debt management.....to them it's buy now and pay.....whenever we can later

I'm of the opinion that debt is necessary evil in this world as it playing out now for all to see with the banking crisis unfolding

spot on , think a lot of the sheeple hope to live fast , die young and leave a handsome corpse ( can't remember the movie thats from) whilst also avoiding

paying off the debt

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My Grandmother always said, 'Pay as you go. If you cant pay, don't go!'

Like yourself, only every borrowed to buy a house and a car.

I am now debt free.

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Hi Guys

Not sure if you've discussed this before .

interested to know your attitude to debt .

have always been debt adverse and tried only to borrow to buy houses & cars ( 1 of each at a time )

I could never understand borrowing to buy a car - using money you've paid tax on to pay interest on a loan to buy a depreciating item. Is that the sound of money being flushed down the toilet I hear? Nowadays I'm able to buy a car out of untaxed income and I still pay cash.

As for borrowing to buy a house, it makes sense if the house is appreciating at a higher rate than your mortgage interest. We all know that is far from the case, so you'd be better to buy your house from savings, too. Using the money you've saved by not borrowing money to buy a car. Probably.

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spot on , think a lot of the sheeple hope to live fast , die young and leave a handsome corpse ( can't remember the movie thats from) whilst also avoiding

paying off the debt

Knock On Any Door - Humphrey Bogart. John Derek says it, though.

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I see debt as something we would be much better without but, given that it does exist, it is a necessary evil for housing. Having never owned a house, I have never been in debt. I would go further than you guys and would not upgrade my car unless I had the money to buy outright. With respect to borrowing for a car - is this a real debt (i.e. takes your overall 'balance' to be negative) or are you borrowing and are able to offset it against savings (i.e. savings earn as much interest as is paid on the borrowed sum)?

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Yes like others I dislike being in debt, or even owing money to anyone, and ! always seek to pay back money to anyone I owe asap. I think I just like to know that my finances are settled. I even payed for my car with savings. But there is no way I will ever own a home without borrowing, unfortunately.

Edited by Nikelodeon

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I could never understand borrowing to buy a car - using money you've paid tax on to pay interest on a loan to buy a depreciating item. Is that the sound of money being flushed down the toilet I hear? Nowadays I'm able to buy a car out of untaxed income and I still pay cash.

As for borrowing to buy a house, it makes sense if the house is appreciating at a higher rate than your mortgage interest. We all know that is far from the case, so you'd be better to buy your house from savings, too. Using the money you've saved by not borrowing money to buy a car. Probably.

Always had a weakness for cars and enjoyed a lot of depreciation over the years :angry: , in the lucky position of owning a decent car outright at the

moment .

Every few months think about upgrading to something flash but the thought of going back to paying off a loan as the value of the car drops like a stone has so far made me see common sense .

Thanks for the replys , a very sensible bunch although like me i'm sure during the boom seen as nutters who didn't want to borrow or mew to get the

"good life " .

Edited by Malthus

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Knock On Any Door - Humphrey Bogart. John Derek says it, though.

cheers should have googled it , love Bogart's movies , To Have or Have Not is one of my all time favorites , and Lauren Bacall was a babe ;)

post-15519-1217972402_thumb.jpg

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My attitude for taking on debt has changed over the years. At first, I took on none and liked it that way too. Then I borrowed to get a flash car, after deciding I wouldn't be buying a house for a while (wasn't planning on staying where I was). I then borrowed to get my business going. However, in hind sight, I wouldn't have borrowed (or at least not as much) for the flash car; they really are a way to burn money. Borrowing for my business I would do again though - it was the only option I had with such high living costs in the UK.

I do think that the attitude to debt in general is too relaxed though. We've been gulled into a false sense of security and this seems to be catching many people up.

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I ensure that I never take out a car loan by never buying a car for more than a couple of grand. I like cars, but they're not worth the money.

I get a much better feeling now from being debt-free than I ever did making that next new purchase. I suspect that the tolerance of debt has changed permanently, though - when the finance industry and therefore the consumer-based economy started becoming the norm in the last few decades, it had to.

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Its odd how attitudes have changed over the years. I remember in the early 90s that if you'd bought something on hire purchase people would have thought you were nuts, and poor as well.

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Its odd how attitudes have changed over the years. I remember in the early 90s that if you'd bought something on hire purchase people would have thought you were nuts, and poor as well.

Thats interesting....attitiudes have changed so much. My parents bought a new car in February and paid for it outright. The dealer (in his 20's) couldnt understand why they didnt go for the hired purchase option as it was 0% interest for a period of time. My parents have always bought cars outright,albeit they were always second hand (but got you from a-b!) - but not getting into debt back then means they have the money now they are retired!

I have 2 cars I own outright now, just by making sacrifices - even if I was loaded I cant understand the mentality of spending loads on a depriciating asset.

My friend (29) started using credit cards 10 years ago and now has 40k debt which he is struggling to pay off working 3 jobs. He doesnt want to declare himself backrupt as hed like to buy a house down the line. With the credit taps turned off he has nowhere to turn for a better deal according to a recent financial advisor he visited. He is distraught.... and I don't know what to advise him. Any ideas?

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He is distraught.... and I don't know what to advise him. Any ideas?

Get a fourth job?

Seriously though what did he spend his 40K on? Anything he can sell off?

Edited by Nikelodeon

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My friend (29) started using credit cards 10 years ago and now has 40k debt which he is struggling to pay off working 3 jobs. He doesnt want to declare himself backrupt as hed like to buy a house down the line. With the credit taps turned off he has nowhere to turn for a better deal according to a recent financial advisor he visited. He is distraught.... and I don't know what to advise him. Any ideas?

i have a mate in a similar position , he's got the interest on most of his loans/cards frozen and got quite a few creditors to accept settlement offers .

the down side is it's still going to take years to pay off the balance and restore his credit rating , not good if you want to buy a house.

being brutally honest if your friend has been overspending £4k / year it's probably not a good idea to jump on the property ladder /snake .

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Get a fourth job?

Seriously though what did he spend his 40K on? Anything he can sell off?

Mostly on holidays with the birds that have now flown away! Also cars etc....but one of his cards was an AA card and the interest rate was so high,he never even realised it had gone up!

i have a mate in a similar position , he's got the interest on most of his loans/cards frozen and got quite a few creditors to accept settlement offers .

the down side is it's still going to take years to pay off the balance and restore his credit rating , not good if you want to buy a house.

being brutally honest if your friend has been overspending £4k / year it's probably not a good idea to jump on the property ladder /snake .

Hes not planning to buy for a long time - he probably wouldnt get a mortgage anyway because of his debt...I did suggest the bankruptcy route as he is living to work with no free time at all - but he is put off because he wont even be allowed to get a mobile phone monthly contract etc.... I will suggest to him getting his interest 'frozen' if possible- I think he said his debt was costing him 800 pounds a month and he was paying 600 rent on top of that!

Edited by sophia

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I would say debt is like swimming up against a river, but of course it depends on outgoings and ingoings overall.

The economic model of "debt and consume" that we have followed here over the years of course is a recipe for disaster, as is now being shown.

However taking debt out to invest in non consumable goods, non-transitory items is a bad thing, if the money is used right. Essentially that is where we have went wrong here at a country level (government) and a personal level. We into debt to buy clothes, cars, holiday homes, ipods, kitchens etc which dont make us any the more wealthy.

However,lets say we had a fantastic idea for a business. Building wind powered farms, solar energy business would take some considerable capital to start, and most people could'nt do without debt. Debt which goes into capital formation, to build infrastructure, transport, viable sustainable businesses then is a must. We couldnt do it without it.

Its like money is neither good nor bad. Money is just an objective entity. Its what the user brings to it. You could be the most creative person in the world(a Henry Ford, Napolean Hill), or the most destructive person (George Bush,lol BIn Laden)

Unfortunately we have been a little uncreative with our debt, but lets hope this experience will teach as all a lesson in money management...

The same for debt. It is neither good or bad.

Edit as I said taking debt to buy consumer goods wasa good thing, instead of a bad thing

Edited by VedantaTrader

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I would say debt is like swimming up against a river, but of course it depends on outgoings and ingoings overall.

The economic model of "debt and consume" that we have followed here over the years of course is a recipe for disaster, as is now being shown.

However taking debt out to invest in non consumable goods, non-transitory items is a good thing, if the money is used right. Essentially that is where we have went wrong here at a country level (government) and a personal level. We into debt to buy clothes, cars, holiday homes, ipods, kitchens etc which dont make us any the more wealthy.

However,lets say we had a fantastic idea for a business. Building wind powered farms, solar energy business would take some considerable capital to start, and most people could'nt do without debt. Debt which goes into capital formation, to build infrastructure, transport, viable sustainable businesses then is a must. We couldnt do it without it.

Its like money is neither good nor bad. Money is just an objective entity. Its what the user brings to it. You could be the most creative person in the world(a Henry Ford, Napolean Hill), or the most destructive person (George Bush,lol BIn Laden)

Unfortunately we have been a little uncreative with our debt, but lets hope this experience will teach as all a lesson in money management...

The same for debt. It is neither good or bad.

It's good debt if someone else is paying it for you, which is what you hope happens if you borrow for your business. If you have to pay it yourself for consumer items, than it's bad.

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It's good debt if someone else is paying it for you, which is what you hope happens if you borrow for your business. If you have to pay it yourself for consumer items, than it's bad.

like BTL years ago :ph34r:

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Mostly on holidays with the birds that have now flown away!

Lots of great memories then. Money well spent. Respect, man.

Hes not planning to buy for a long time - he probably wouldnt get a mortgage anyway because of his debt...I did suggest the bankruptcy route as he is living to work with no free time at all - but he is put off because he wont even be allowed to get a mobile phone monthly contract etc.... I will suggest to him getting his interest 'frozen' if possible- I think he said his debt was costing him 800 pounds a month and he was paying 600 rent on top of that!

He needs to get on ebay and sell everything not tied down. Better prices than the second hand shops by far. He needs to move into a house as a lodger if he's single, and he has to get a bicycle. But then he's probably already doing that.

I've 2 friends who were at Queen's with me (clever, supposedly) who ran into a bit of bother on the CCs. Strangely, they also had a few thousand in savings, kept for emergencies, sitting at a rubbish interest rate, while the CC company piled on the charges. Make sure your friend isn't in the same fix.

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  • 401 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% +
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      • Even
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      • up 5%



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