Tuesday, October 14, 2008

Amazing debt story

Facing up to the debt monster

"Paul and Amanda Davis have worked hard all their lives to bring up their three children, but they do admit to having succumbed to the buy-now-pay-later culture, and now find themselves with £50,000 of unsecured debt ... Paul, a construction manager, brings home £2,700 a month, while Amanda weighs in with £520 a month from her part-time job as a credit risk manager." WWHHATT!!! A credit risk manager in this mess?

Posted by quiet guy @ 10:52 PM (1358 views)
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15 thoughts on “Amazing debt story

  • Well, I have no sympathy.

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  • little professor says:

    I know quite a few debt advisors who have huge amounts of debt themselves. Strange.

    No sympathy for this couple, the money wasn’t spent on living expenses, but on “xmas gifts and holidays.” It’s not free money, they knew they had to pay it back.

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  • buy-now-pay-later….that sounds flawless

    its like free stuff……..ya???

    feckless flipping stupid people….

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  • last_days_of_disco says:

    They know that we will pay it back via inflation. THis is the inevitable consequence of the social welfare state. Why bother being
    careful, there is a social safety net, you can go bankrupt, etc, etc. What possible motivation is there fir being frugal when everything you save is eaten up by inflation. We have sleep walked into Lenin’s method for grinding down the middle class. Inflation and taxes.

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  • last days of disco…

    Don’t forget about Karl Marx. Apparently George Doublya is a new convert. He’s nationalising the banks just ‘cos a one eyed jock called James Gordon Brown said so.

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  • “Explaining to the kids that we now can’t afford things like Sky TV and mobile phone contracts has been hard”

    ..are these people for real?

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  • Note the main breadwinner is a construction manager – think his problems are about to get a lot worse.

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  • Slaves in a cage. Luxurious cage though.

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  • They could really do with visiting MSE and learning a few tricks. That grocery bill is ridiculous, for a start. They spend at least 2 1/2 times what I do per person on groceries, and I usually buy at least one luxury a week, like asparagus or fancy chocolate, and only eat unhealthy food when I’m being lazy. If they just shopped at the right time of day and did some cooking then they’d be saving about £400/month just on that. If you add on the entertainment expenses, which would be possible to cut out almost entirely if they visited the library for books and watched TV, went to free events etc, that’s about an £800/month saving even before looking at any of the debts, car finance etc.

    Obviously, it’d be a bit hardcore to cut *everything* out, but they could easily halve their monthly deficit without living like paupers.

    I don’t think I’ll ever understand how someone thinks it’s a good idea to buy luxuries using credit.

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  • Interesting that they are facing up to the situation and do know precisely what their burden of debt is. Do our banks and lenders know their real debt figures and if so, can they please let us know ? I suspect that Mr Brown, Mr Bush et al, do know the real figure and the real consequences of the numbers being made public.

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  • One fundamental contributing factor to the personal finance crisis in this country is the lack of math/numeracy skills. I know a lot of investors, bankers, mortgage brokers, financial advisors and of course Estate Agents, basically CANNOT do math.

    They pretend they do, like pretending everything else. But the best they CAN do is just enter a few biased numbers in a spreadsheet or numerical model and believe whatever comes out from the other end is God’s will.

    They fundamentally misunderstand how risks, probabilities and statistics work. They believe risks are something that can be minimise just by appearing confident and “talk the talk”. This is like believing that you can toss the head of a coin most of time just by imagining it in your head!!

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  • I think most people in the UK dont even know what Math is.
    I beleive its Mathematics but done in the USA – is that correct?

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  • The commenters on the Times’ website recommend transferring the credit card debt onto the mortgage, to benefit from lower interest rates. However none of the financial advisors recommended this course of action. Are the banks not allowing people to do that any more?

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