Increasing the interest rate to 5%, is this really the fairest way to slow inflation?

I despair of this gov't, they have given tax cuts to the wealthy and enabled huge payouts to shareholders yet it's those on low incomes with big mortgages they're going to punish. It's almost as if they believe all people on frugal incomes are lazy scroungers and must be punished

maddyone

Ahh, here comes the DM hatred again. If you don’t agree with some people, you absolutely must be a DM reader.

I said nothing of the sort.

I just said that complaints about the apparent spendthrifts sound like a DM story.

It's sickening that when people are struggling with today's situation the Three Yorkshiremen (or was it four) stories are trotted out.

And, I'd like to know who are the parents and grandparents of this feckless generation? Doesn't say much for their ability to bring up responsible young adults, does it? But then, when I occasionally dip into some other forums on GNet I'm sometimes astounded at the purchasing decisions some posters make. Every bit as spendthrift as their descendants.

maddyone

Yes Norah, we are also happy with our older cars, but as mentioned above I will be taking delivery of a new i20 in September this year, courtesy of my dear parents. I will always think of it as a last gift from them.

Seems rational to me. Drive until quite old, buy new, not on credit.

Yes maddy. The ultimate insult when you’ve run out.

So now I’m going to be taxed to penury and homeless. That’s going to take some doing - again, I don’t think so.

Ahh, here comes the DM hatred again. If you don’t agree with some people, you absolutely must be a DM reader.

MaizieD

Germanshepherdsmum

I don’t blame anyone for all the ills in the world Daisy (what a strange comment) but I do criticise those who complain about increases in interest rates whilst indulging in non-essential expenditure. Luxury items. Quite simply, you have to make a choice - instant gratification or pay the bills and buy essentials? You know that I have lived that life and it has conditioned my attitude to unnecessary spending ever since.

Just who are these people complaining in increases in interest rates while indulging in non-essential expenditure?

Do you have some actual, verifiable examples to show us , and do you have any reliable figures on what percentage of the population they comprise?

Because, at the moment, you, and others on this thread, sound like a Daily Mail story. High on indignation but low on fact...

Ah, the Daily Mail. The paper that provides the Two Minute Hates (and more) that we read about in 1984

Yes Norah, we are also happy with our older cars, but as mentioned above I will be taking delivery of a new i20 in September this year, courtesy of my dear parents. I will always think of it as a last gift from them.

Germanshepherdsmum

I don’t blame anyone for all the ills in the world Daisy (what a strange comment) but I do criticise those who complain about increases in interest rates whilst indulging in non-essential expenditure. Luxury items. Quite simply, you have to make a choice - instant gratification or pay the bills and buy essentials? You know that I have lived that life and it has conditioned my attitude to unnecessary spending ever since.

You really don't get it, do you. As I said, what will you do when you are taxed to penury and homeless? Do you think the millennials, now rising to 40 and moving into government, will treat you with compassion? Do you think they will care about those who whinged about them not being a clone of people who created the totally dissonant and deconstructed world we have made for them?

Of course, some will care as some care about them now. But many will have been taught not to. To just look out for themselves. What have they heard but criticism, grouping together anyone who can be labelled and then making them pay the price; often a price we did not pay.

growstuff in my world I own and drive an eleven year old i20 and my husband drives a nine year old VW Passat, which incidentally is very comfortable to ride in. As my mother died last year and left me a very small inheritance I have ordered a new i20 as a gift from my much missed parents. I expect it to be my last car.
My children have never participated in these schemes which I believe to be a complete rip off. They have bought cars outright or taken proper bank loans, but I know of other younger people who have used these schemes. They are teachers, doctors, TAs, etc. They have normal jobs. So they are not particularly privileged.

Germanshepherdsmum

I don’t blame anyone for all the ills in the world Daisy (what a strange comment) but I do criticise those who complain about increases in interest rates whilst indulging in non-essential expenditure. Luxury items. Quite simply, you have to make a choice - instant gratification or pay the bills and buy essentials? You know that I have lived that life and it has conditioned my attitude to unnecessary spending ever since.

Just who are these people complaining in increases in interest rates while indulging in non-essential expenditure?

Do you have some actual, verifiable examples to show us , and do you have any reliable figures on what percentage of the population they comprise?

Because, at the moment, you, and others on this thread, sound like a Daily Mail story. High on indignation but low on fact...

Katie59

The non essential waste is massive, ready meals, take always, alcohol, cable TV, mobile contracts, broadband, new phones, the list goes on. I have the minimum phone and mobile contract, I pay the minimum, some pay £50 a month + just for phone.

^ the younger people get new cars every three years or so on the loan payment schemes. They prefer to drive newer cars.^

.This is absolute rubbish, it is like saying all old men drive sports cars, some do, but the majority do not. Personally, I know one or two people who drive new expensive cars. This is because they are well off and can afford them. The majority of young people I know run the same kind of older cars as I do. Some have cars even older than mine

Every generation does it, blames the problems the young face on their extravagent spending, makes sweeping generalisation that apply to some but not all, and is highly unlikely to apply to those on tight incomes.

I don’t blame anyone for all the ills in the world Daisy (what a strange comment) but I do criticise those who complain about increases in interest rates whilst indulging in non-essential expenditure. Luxury items. Quite simply, you have to make a choice - instant gratification or pay the bills and buy essentials? You know that I have lived that life and it has conditioned my attitude to unnecessary spending ever since.

maddyone

Germanshepherdsmum

Oh, and my car is 17 years old.

Good point GMS but today the younger people get new cars every three years or so on the loan payment schemes. They prefer to drive newer cars. I would never do this as it’s basically a car rental scheme, but if having a shiny, new car is important to some, that’s the way they go.

Seems a good place to cut outgoings.

But we're easily content with 2007 and 2008 cars.

Some people are so out of touch with the reality for many younger people. Large mortgage and rent increases on top of significantly higher food costs, fuel, and energy costs, increased council tax, water rates, etc. etc. are tipping millions over the financial abysss. Saving a few pounds on your phone bill or takeaways is not going to make up the shortfall, which is one of the reasons for the increasing personal debt burden. We have to be real about what this means for some people, not snipe around the edges of younger peoples spending habits.

Germanshepherdsmum

So we should have a little less in the bank in order to enable people to buy their non-essential ‘essentials’ and contribute ‘individuality’ to society? I don’t think so …
Fortunately the whingers are not my neighbours. You and I inhabit very different worlds I think Daisy.

No, GSM, that is not what I said, but I do think it is something you are strongly determined to believe, whatever I say. It suits you to put "other" people in boxes and blame them for all the ills in the world. I don't suppose that will ever change.

I even doubt it will change if you are eventually put in the "old people who are to blame for everything that has gone wrong since the war" box. If everything you have is taken away from you in reparation and you are despised just for being a certain age you will still be blaming others in your group.

While in fact, it is the attitude to others, who you do not know and whose lives you have not lived, that creates this possibility. This attitude is teaching a large slice of the population that it is okay to both dehumanise entire groups and then punish them for what others believe they have done.

No GSM, we do not live in different worlds. The "whingers" are not your neighbours. They are not that far away. We all have to live, survive and share the only world we have.

maddyone

Germanshepherdsmum

Oh, and my car is 17 years old.

Good point GMS but today the younger people get new cars every three years or so on the loan payment schemes. They prefer to drive newer cars. I would never do this as it’s basically a car rental scheme, but if having a shiny, new car is important to some, that’s the way they go.

No, they don't all!!! Maybe they do in your world but not in the real world.

What’s FoodShare?

maddyone

Katie59

It matters to the buyer of those services, personally I don’t care if they don’t do take aways, the waste that goes past me on the checkout you would not believe.
For example bought sandwiches for a child’s lunch £3.50, 2 slices of bread some salad and mayo, barmy.

I agree with you Katie and back in the 70s and 80s many of these things were not, or were barely available. But those that were available, such as take aways for example, we simply didn’t buy because the first priority was to pay the mortgage and keep a roof over our heads.
And as growstuff points out, the mortgage payment increase was much less in those days, but perhaps forgetting that wages were tiny in comparison to today’s wages. The increase in mortgages in those days hit us just as hard as it’s doing today. I can’t speak for others but it certainly did us!

maddyone I've seen the calculations (if I can retrieve one I'll post it on here). Today's increase to 6% will have a much greater effect than even the temporary increase to 16% in the 1980s.

Germanshepherdsmum

Oh, and my car is 17 years old.

Good point GMS but today the younger people get new cars every three years or so on the loan payment schemes. They prefer to drive newer cars. I would never do this as it’s basically a car rental scheme, but if having a shiny, new car is important to some, that’s the way they go.

Norah

Agreed. People could cut out non-essentials.

I don't think comparing 7% mortgage interest (if that is indeed correct) to 17% interest is helpful - 5-8% seems rather normal.

I couldn't cut out non-essentials because I don't spend on them in the first place ... and I'm not the only one! (Just returned from FoodShare.)

Katie59

It matters to the buyer of those services, personally I don’t care if they don’t do take aways, the waste that goes past me on the checkout you would not believe.
For example bought sandwiches for a child’s lunch £3.50, 2 slices of bread some salad and mayo, barmy.

I agree with you Katie and back in the 70s and 80s many of these things were not, or were barely available. But those that were available, such as take aways for example, we simply didn’t buy because the first priority was to pay the mortgage and keep a roof over our heads.
And as growstuff points out, the mortgage payment increase was much less in those days, but perhaps forgetting that wages were tiny in comparison to today’s wages. The increase in mortgages in those days hit us just as hard as it’s doing today. I can’t speak for others but it certainly did us!

Relieved to have the neighbours I do. There but for the grace of God ...

Agreed. People could cut out non-essentials.

I don't think comparing 7% mortgage interest (if that is indeed correct) to 17% interest is helpful - 5-8% seems rather normal.

Germanshepherdsmum

So we should have a little less in the bank in order to enable people to buy their non-essential ‘essentials’ and contribute ‘individuality’ to society? I don’t think so …
Fortunately the whingers are not my neighbours. You and I inhabit very different worlds I think Daisy.

Well, GSM, you've bought into the capitalist consumer dependent society, from which, by your accounts, you've done very well and now you are condemning others who have bought into it too because their lifestyle is different from yours.

General economic prosperity depends on people spending money, not on acquiring money from other people and then locking it away and rendering it valueless.

There is nothing about a frugal lifestyle that is inherently more virtuous than one which keeps money circulating in the economy.