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

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.

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.

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.

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.

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...

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.

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.

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.

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

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

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.

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

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.

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.

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

No Maizie you didn’t. Nor did I say you did. It was a different poster!

But you did make a less than flattering comment about the DM. But I’m neither surprised nor bothered by that, or you’re indignation.

Your indignation……

The BoE considers this is the right course to bring down inflation spabbygirl. I am not qualified to say whether that’s the right thing to do or not - opinions differ. But what more exactly do you expect the government to do for you?

Well Maizie, this parent doesn’t have a feckless child. He’s done very well for himself, by himself . As has his wife. Far better off than I was at his age.

It is possible to complain about interests rate increases whilst being able to afford the more expensive mortgage and unessentials

They are not mutually exclusive.

One can complain, certainly - but saying you don’t know how you’re going to afford it is another matter.

Germanshepherdsmum

Well Maizie, this parent doesn’t have a feckless child. He’s done very well for himself, by himself . As has his wife. Far better off than I was at his age.

It’s not about you, or me, or any other Gransnetter who is relatively well off though, is it? The fact that our children have done well is great, but but it’s not relevant to the millions who live much closer to the poverty door, and are unable to prevent themselves slipping through it despite their best efforts.

The majority of people aren’t feckless fools, they are decent and hardworking people whose roles are needed by society, but they don’t earn lots of money in the jobs they do, or if they are pensioners, did. I genuinely don’t understand why people don’t see that fact.

GrannyGravy13

It is possible to complain about interests rate increases whilst being able to afford the more expensive mortgage and unessentials

They are not mutually exclusive.

You are always the voice of reason, GG13.

I just get cross 👿

Can anyone hazard a guess as to how high the interest rate will rise and will the housing market take a downturn? Or are the large house builders land banking as it’s unprofitable to build at the moment?