Panorama and Debt- very concerning

Wrong title copied and pasted, have asked GN to replace asap. Sorry.

Thank you for correcting GN.

Debt is a huge factor in current poverty, and other social issues. Once caught into the system, and with companies prepared to lend more and more, without any checks, at humongous rates- mean many are losing all, house, housing, cars, and everything else- one, by one- until nothing is left.

These lending companies have to be controlled and checked by Governement.

I think youngsters today have far greater expectations and want things rather than need them. Things are easily discarded and replaced with new. The make do and mend culture we had is history.
Many have had previously unheard of opportunity to get a first class education, to travel the world, to see and do things we never dreamed of, before they may eventually decide to settle down.
Yes loan companies do encourage borrowing but us older folk generally only bought what we could pay for or went without until we had saved up fir it. The bank of mum and dad was unknown and we had to manage by ourselves. Making do, working to a budget.
Surely those who borrow bear responsibility for their own behaviour and actions. They know they will have to repay, with interest? It is a choice. They can cut their cloth etc. and if you don’t know that expression you are probably disagreeing with me as you read. That’s ok.

but us older folk generally only bought what we could pay for or went without until we had saved up fir it

Hmmm. How many of us bought our hoses with a mortgage?

I believe that mortgages comprise a large part of this debt. They're bound to as mortgages are huge these days.

I don't see any particular virtue in the thrifty ways of our generation, or universal thrifty habits.. Hire Purchase? Buying from catalogues?

We seemed to embrace credit cards, another source of debt, with enthusiasm. I recall the first one, Access, was introduced in the early 70s with the slogan that should have rung alarm bells, but didn't, 'Access takes the wait out of wanting'.

How can we castigate the younger generations for doing what they have been encouraged to do for decades?

The strange thing about debt is that it actually supports growth in the economy; businesses would lose custom, and therefore money, if people didn't go into debt to purchase goods.

The crunch will really come if people can no longer afford to service their debts because of interest rate rises.

For anyone with a child that is in credit card debt, the Money saving expert web site has articles on companies that allow you to transfer the balance at 0%, and pay it off.

I owed a large amount on my credit card and the interest wiped out my repayment amount. I transferred the balance to a 0% interest card and was able to pay it off at £30 per month, rather than the £150 per month minimum payment demanded by the credit card company.

I have never been in debt as I always lived within my means. So my house is more modest than I can actually afford, we share a car nowadays and I always look for value for money.
Young people today want everything now, whether they can afford it or not.
Rather than debt education perhaps lessons about living within one’s means would be more appropriate.

Esspee

I have never been in debt as I always lived within my means. So my house is more modest than I can actually afford, we share a car nowadays and I always look for value for money.
Young people today want everything now, whether they can afford it or not.
Rather than debt education perhaps lessons about living within one’s means would be more appropriate.

So, did you buy your house outright? Or did you go into debt to buy it aka a mortgage?

Esspee

I have never been in debt as I always lived within my means. So my house is more modest than I can actually afford, we share a car nowadays and I always look for value for money.
Young people today want everything now, whether they can afford it or not.
Rather than debt education perhaps lessons about living within one’s means would be more appropriate.

Or maybe a government could concentrate on increasing "one's means" for some people.

Very true Maizie. I wonder whether people ever wonder how interest is paid on savings.

I got into debt because of child care costs - in 1997 I was paying £900 per month for my daughter's childminder, and my son's nursery. My Mum worked and was unable to help me, I ended up getting behind with the mortgage, a frightening time.

young people today want everything now
So did I at that age. Particularly so when we bought our first house in 1971. Ex husband earned a good wage, I worked part time, very lucky having free child care. We knew that we could afford the repayments so we had what we wanted/ needed on credit.

MaizieD

Esspee

I have never been in debt as I always lived within my means. So my house is more modest than I can actually afford, we share a car nowadays and I always look for value for money.
Young people today want everything now, whether they can afford it or not.
Rather than debt education perhaps lessons about living within one’s means would be more appropriate.

So, did you buy your house outright? Or did you go into debt to buy it aka a mortgage?

When we had to move to a more expensive area in the 1980s the mortgage rate was 15%. We bought a smaller house at nearly twice the price.
It was a struggle to exist, frankly.

Mortgage rates are very low now, in comparison and many young couples seems to be doing quite well unless much of it is an illusion and all on "tick".
Anyone who over-stretches themselves and gets into debt because they want it all doesn't really get my sympathy unless they've lost their jobs.

The people I feel desperately sorry for are those struggling, often single parents, and living in sub-standard Council or HA accommodation. Some of what we see is truly shocking.

Shandy57

I got into debt because of child care costs - in 1997 I was paying £900 per month for my daughter's childminder, and my son's nursery. My Mum worked and was unable to help me, I ended up getting behind with the mortgage, a frightening time.

I recognise that predicament.

growstuff

Very true Maizie. I wonder whether people ever wonder how interest is paid on savings.

What interest?
?

@growstuff, I had to sell my grandmother's emerald ring, my Mum couldn't help us. The insurance company had valued it at £2K - I got £400 for it from the jewellers. It paid my childminder, at least.

Shandy57

@growstuff, I had to sell my grandmother's emerald ring, my Mum couldn't help us. The insurance company had valued it at £2K - I got £400 for it from the jewellers. It paid my childminder, at least.

Yep! I sold some gold jewellery too. I sometimes think about the stuff I sold and wish I hadn't, but it paid for the childminders and mortgage (as you say).

Calistemon

growstuff

Very true Maizie. I wonder whether people ever wonder how interest is paid on savings.

What interest?
?

Well, that's the problem. The BoE daren't raise interest rates too much, but some people are still earning interest.

Pension funds are having problems because interest rates are low. They need people's debts.

growstuff

Pension funds are having problems because interest rates are low. They need people's debts.

Yes, those of us who struggled with 15% interest on our mortgages were paying the 8% interest on the savings of those lucky enough to have!

have any

Shandy
I’ve been there. But fortunately those were the days when you could actually talk to your mortgage provider.
I did this on the good advice from my boss. He told me to phone everyone we owed money to before we got the letter
I offered the mortgage provider what I thought we could afford
and he lowered my offer ?

MaizieD

Esspee

I have never been in debt as I always lived within my means. So my house is more modest than I can actually afford, we share a car nowadays and I always look for value for money.
Young people today want everything now, whether they can afford it or not.
Rather than debt education perhaps lessons about living within one’s means would be more appropriate.

So, did you buy your house outright? Or did you go into debt to buy it aka a mortgage?

Yes, most of us had to have mortgages, for sure. But we were tested for what we could afford- unlike current 'Pay Day, loans and similar types. On the programme, the journalist opened loans with many of those companies without any checks about finances, or about other loans.

This thread was NOT, in any way, shape or form, about young people's consumer behaviour- but about the multiple Money lending companies that prey on the weakest and most vulnerable- and that the Government should seriously study the effects and take measures to protect the above.

A mortgage is a very very different proposition altogether.

Did anyone see the programme?

This thread was NOT, in any way, shape or form, about young people's consumer behaviour-

You were very optimistic there, Kali2.

but about the multiple Money lending companies that prey on the weakest and most vulnerable

I'm sorry. I didn't see the programme and your OP didn't make it clear.

(A mortgage is still a debt, though. I was just pointing out that fact for the benefit of the self righteous...)