Thursday, Sep 24, 2009

Recipe for HPI anyone? Or maybe a symptom of buying into the last round of madness ....

PA: A quarter 'struggle to pay bills'

One in four Britons are currently struggling to pay all of their essential bills, a survey has revealed. Skip related content
Related photos / videos A quarter 'struggle to pay bills' Around 25% of people claim they can no longer afford all of their essential outgoings, including mortgage repayments and food, according to insurance specialist Bright Grey. A further 14% of people admitted their finances were so stretched that they would run into problems if their outgoings rose by just £50 a month, while 16% did not think they would be able to cope if they had to find an extra £100.

Posted by montesquieu @ 12:47 AM (1290 views)
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18 Comments

1. mrflibble said...

Welcome to knife edge Britain...

The sooner this 25% of deadwood is cleared off the sooner people who can actually manage their money and who don't live hand to mouth will be given a chance at owning their own place for a reasonable sum of money.

No doubt this bunch are same idiots who were outbidding us all five years ago for a shack that you could barely swing a cat in.

Pass me a violin, I'm feeling all musical...

Thursday, September 24, 2009 08:35AM Report Comment
 

2. crash n burn said...

Sad to say, I can well and truly believe that figure... Even I, with not a single debt to my name, cannot afford my own bills. I'm watching my house deposit slowly haemorage away. God help us all! Here comes the brain drain... I know I can earn more money abroad and save.

Thursday, September 24, 2009 08:37AM Report Comment
 

3. alan said...

mrflibble,

If the "25% of deadwood" were governed better, maybe they wouldn't need to be "cleared off". How were you thinking of "clearing them off"? Put them on benefits, reinvent the workhouse, export them, gas them?

As a debt advisor, most of the distressed folk I meet need some re-education. I work unpaid for a charity...there aren't enough of us to go round.

Thursday, September 24, 2009 09:05AM Report Comment
 

4. inbreda said...

@3

I vote workhouse.

That would help re-educate them.

Thursday, September 24, 2009 10:06AM Report Comment
 

5. 51ck-6-51x said...

The question is, is this really any higher than pre-crunch?!

Thursday, September 24, 2009 10:16AM Report Comment
 

6. rumble said...

Alan, what percentage of the people you advise are in trouble through no fault of their own?

Thursday, September 24, 2009 12:53PM Report Comment
 

7. alan said...

@ Rumble,

Lots of people I see who are struggling are in employment, paying taxes. They deliver babies, teach children, maintain trains etc. They just don't understand budgetting (or financial bubbles) very well. Some of them were a bit greedy, others believed all the hype about getting on the housing bandwagon while they could. Some hit unexpected unemployment or similar quickly changing circumstance. A few of them rent but need to realise they can't maintain a celeb lifestyle for long.

People don't fall into nice pigeon holes, unfortunately....

Thursday, September 24, 2009 01:46PM Report Comment
 

8. rumble said...

"They just don't understand budgeting" - I can't comprehend that. We're talking in the region of six year old maths and the most basic common sense. Again, "others believed all the hype", this is really child-like gullibility, research laziness, ... What have these people been doing that their brains don't seem to have reached even a teenage level of wakey-wakey? The "unexpected unemployment or similar" crowd I can understand, a cushion may take a while to build up, and can run out. The rest... to say that they "need some re-education" seems awesomely optimistic. My flippant side would love to say "yeah gas 'em - how'd they slip through the evolution system?". But really I guess the creditors allowed the situation by taking a poorly measured risk and should suffer the loss - they should sooner or later devise ways of more accurate assessment and appropriate loan sizes. The budgeting-challenged consequently marked as such and can no longer spend nothing on something. Hmm, banks and risk, sure I've heard that somewhere before. I've drifted off course, these people who "need to realize they can't maintain a celeb lifestyle" are basically morons who've helped increase prices with the aid of banks who are using my tax money to invest as they choose(gamble). So I get screwed on multiple fronts. What's wrong with workhouses? If you can't realize your limits on your own... Workhouses to sponsor the banks, rather than using my taxes. Banks required to put acquired houses on the market immediately at no more than purchase price. Don't involve me in their screw up. (I honestly attempted understanding. Mother nature's a bitch.)

Thursday, September 24, 2009 03:24PM Report Comment
 

9. the number cruncher said...

Many people (including Mrs Number Cruncher) think that spending money is a moral question and not a mathematical one. I.e my sister in law has a new kitchen therefore we must have one. My sister got a 300k 95% self cirt mortgage etc. They do not want the tyranny of basic maths and cold hard reason. If you read Zen and the Art of Motorcycle Maintenance this explains such thinking well.

Many people borrow money to what they think is 'normal', whatever 'normal' is.

Thursday, September 24, 2009 04:19PM Report Comment
 

10. rumble said...

You had to go and include Mrs Number Cruncher in there - now I have to watch my words!
"spending money is a moral question and not a mathematical one" - when you say moral do you mean irrational? I still cannot comprehend this lala land detached from reality. We're not talking about anything complicated here, we're not talking stats, or the requirement of vast knowledge, but the most elementary skills within the grasp of six year olds. This is psychosis. That article should say 25% of Britons are suffering from psychosis. Presumably nurture induced? Seems the credit crunch is the least of our worries. I should've read that book by now. I'll get my PA to pencil it in. (No I don't have a PA, but if we're making sh!t up...) Anyway, my private jet awaits me, off to a space port to admire interstellar craft. (Bus to a boat show.) Jeeves!

Thursday, September 24, 2009 05:05PM Report Comment
 

11. Crash N Burn said...

I have to ask the question - has no-one in this forum been smashed by wage deflation yet??? Times are lean even for the prudent. I agree, stuff the idiots who spent all the money. Never mind, contagion is due to spread.... The market is going to flunk after reaching the 5,500 level (taken on the inverted extension of the head and shoulders pattern). We are heading South and a whole lot more carniage is coming our way. Watch the fall of the West vs the BRICs. Just take a look at the Brazilian Real - ticker code BRL. Sterling has been ravaged against the Real and even the Colombian Peso! The balance of power is shifting away people... Time to get ready with the shorts and follow the market down... We're all stuffed.

Thursday, September 24, 2009 05:21PM Report Comment
 

12. Eternal Sceptic said...

I wonder what percentage of adults do not understand simple compound interest. What is borrowed today inevitably costs more to pay back tomorrow. Most have spent at least a decade living beyond their means, remortgaging constantly to the limit. Now the day of reckoning should have arrived but the government is sh****t scared to say the party is over.Anyone that lived frugally and saved is now royally shafted. So is the message of Nulabor spend like their is no tomorrow, because we have postponed it?

Thursday, September 24, 2009 05:23PM Report Comment
 

13. phdinbubbles said...

If the big green bunny sitting in the armchair told someone to buy a kitchen, then that would be psychosis. Just an everyday story of denial and group-think imho. It's not that people don't have the capability to understand; It's that they don't want to understand and think it must be OK if everyone else is doing it.

Thursday, September 24, 2009 05:24PM Report Comment
 

14. timmy t said...

Apart from those unfortunate people that lost jobs, it's greed and jealousy - thats all it is. They understand alright, they probably know its not the right thing to do, but they can't stand the thought of not keeping up with the neighbours. Its sad really.

Thursday, September 24, 2009 05:47PM Report Comment
 

15. 51ck-6-51x said...

Q: Is it because it's normal, or is it stupidity or even psychosis?
A: All of the above - it's "The madness of crowds"

Thursday, September 24, 2009 05:57PM Report Comment
 

16. Golfballsassistant said...

"As a debt advisor, most of the distressed folk I meet need some re-education. I work unpaid for a charity...there aren't enough of us to go round."

I agree they need some re-education, however the re-education they need is being denied to them by Crash Gordon, Mr eyebrows and that useless git from the BOE who are together doing everything in their power (burning sterling to the ground, check the slide since 08) to artificially support the value of their houses.

Let the free market do the education, this years lesson was supposed to be all about don't buy stuff you cannot afford. Let them go bankrupt, and that includes the morons who leant them the money too. Work the overblown asset prices out of the system and in two to three years time people can go out, buy a house and get on with their lives spending their cash on something more productive.

I do believe in the saying, sometimes you have to be cruel to be kind, I believe it applies here.

Thursday, September 24, 2009 05:57PM Report Comment
 

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18. alan_540 said...

Banks should not lend to people who fall outside of their lending criteria.

It's not about the greed of the people applying for huge mortgages - the housing bubble means that they need huge mortgages to "get on the ladder". Our glorious government allowed the bubble to inflate. The banks relaxed their lending criteria in order to lend more money.

So if anyone is to blame it is the government and the banks.

Thursday, September 24, 2009 06:56PM Report Comment
 

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