How much do you OWE?

[Race]

It really is all about managing money. I wish they had some kind of lessons in life i.e managing money etc when I was at school. I wonder if they do now.

I dont think they do but they should. When Guy was an apprentice at Spurs he was taught how to use a knife and fork in posh restaurants and stupid things like that but he should have been taught how a bank account worked cos he knew nothing about finances apart from how to use the whole in the wall!

Our eldest has just been offered her first full time job and already she has worked out what she can spend and what she can save! She isnt allowed to have any kind of credit card or the like while she is living under this roof and she will be paying towards her keep so she gets the idea for when she is ready to leave home. Hopefully we have pointed her in the right direction where money is concerned and living within your means and she has always saved each month from her part time job so fingers crossed. It is scary to think that is so easy to get into debt, just one credit card and it has you hooked!

 

[binky]

I didn't make myself clear, apologies. I meant more in the realms of overdrafts, mortgages, Hire purchase, car payments. The sort of thing that some people don't see as debt but more as the only feasable way to live, even when doing without luxuries.

That though is my point.
You say that some people don't see these things as debt, but they are all taking money which you don't have, and agreeing to pay it back later.

Duh.

I accept that there are circumstances where a small amount of debt is necessary.
Needing transport for work, maybe where public transport is impractical.

Most areas though are optional.
i.e. you don't have to buy a house and have a mortgage. Nobody is forcing you. Rental is an option.
You don't need a washing machine. Last time I looked, there were still launderettes.
etc.etc.

My point was that nearly everyone sees these things as necessities, (house, washing machine), and from there on in, pretty much everything which someone WANTS becomes something which they NEED, and then becomes something to which they feel ENTITLED, and which they then borrow money.

I really don't want to come accross holier than thou. When I was younger, I had a problem paying off my credit cards. I had a bank loan, and an overdraft faciility with another bank. This fueled a great lifestyle, including holidays in the south of France, motorcycles, cars... but I ended up owing the better part of a years salary to the banks.

Anyway, I have forgotten where I was going with this now, so I'll shutup for a bit

 

[Nibble]

That though is my point.
You say that some people don't see these things as debt, but they are all taking money which you don't have, and agreeing to pay it back later.

Duh.

I accept that there are circumstances where a small amount of debt is necessary.
Needing transport for work, maybe where public transport is impractical.

Most areas though are optional.
i.e. you don't have to buy a house and have a mortgage. Nobody is forcing you. Rental is an option.
You don't need a washing machine. Last time I looked, there were still launderettes.
etc.etc.

My point was that nearly everyone sees these things as necessities, (house, washing machine), and from there on in, pretty much everything which someone WANTS becomes something which they NEED, and then becomes something to which they feel ENTITLED, and which they then borrow money.

I really don't want to come accross holier than thou. When I was younger, I had a problem paying off my credit cards. I had a bank loan, and an overdraft faciility with another bank. This fueled a great lifestyle, including holidays in the south of France, motorcycles, cars... but I ended up owing the better part of a years salary to the banks.

Anyway, I have forgotten where I was going with this now, so I'll shutup for a bit

I think we are making the same point. People do not see it as debt. I do and thankfully do not have any significant debt. I don't spend money I don't have and don't have a mortgage.

Don't appreciate the Duh comment.

 

[Cian]

Most areas though are optional.
i.e. you don't have to buy a house and have a mortgage. Nobody is forcing you. Rental is an option.
You don't need a washing machine. Last time I looked, there were still launderettes.
etc.etc.

Both of these end up costing you more money in the long run if you take the non-purchase option. 300 quid washing machine + whatever electricity it uses + 6 quid a week on washing powder vs. 25 quid a week launderette (or whatever it costs these days) = buying the washing machine is substantially cheaper over a year even.

Similarly, I could still be driving the 20 year old car I had 3 years ago (well it was 17 years old then, but anyway), but it got half the mileage of my now 3 year old car and cost significantly more in repairs. As a bonus the new one is also way more comfortable, etc. The austerity option is rarely the cheapest option in reality.

 

[Race]

Both of these end up costing you more money in the long run if you take the non-purchase option. 300 quid washing machine + whatever electricity it uses + 6 quid a week on washing powder vs. 25 quid a week launderette (or whatever it costs these days) = buying the washing machine is substantially cheaper over a year even.

I thought Albert Square was the only place to have a launderette these days! I wouldnt even know where to look for one round here, I've not seen one since we lived down here!

 

[zefarelly]

we own 2/3 of our house at least . . .which is nice, although its all relative and it'll take 10-20 years to pay off the rest !

1k OD and 1K CC if a few people would stump up for engines I'm building/have built I'd be back in the black

also have a spare car to sell, hopefully see 2k for that, although it might get swallowed up if I buy another lock up !

 

[Turkey]

Last week I finally paid off my student overdraft

 

[Cian]

I thought Albert Square was the only place to have a launderette these days! I wouldnt even know where to look for one round here, I've not seen one since we lived down here!

Theres one in my suburb, but we have a university here. Also some dry cleaners still do general laundry I think.

 

[Hiney]

Debt is all relative though isn't it?

It's all about your ability to pay it off, not how much you've got.

 

[Alex Alex Dawson oo! oo!]

I thought Albert Square was the only place to have a launderette these days! I wouldnt even know where to look for one round here, I've not seen one since we lived down here!

There's one just up from the back entrance to Guildford station, think there's a direct service from Southampton.

 

[zefarelly]

we did discuss this over dinner once, if we sold musical instruments, watches, jewellery, cars, scooters etc . . .could we pay off the mortgage

answer . . .NO! and we'd have none of our hobbies to keep us sane whilst working hard to pay for it !

 

[Race]

Debt is all relative though isn't it?

It's all about your ability to pay it off, not how much you've got.

Exactly, in my book there is affordable debt and out of control debt! I would never buy anything on tick unless I knew it could be paid off quickly or within our means. My mate told me the other how much she owed on credit and store cards and I was gobsmacked, it would take a re-mortgage or selling her house to pay it all back, and they make minium payments and just keep spending each month!! I dont know how or why people do it, and I'm sure loads of people live like that. I couldnt sleep at night knowing it was out of control like that.

 

[beorhthelm]

Most areas though are optional.
i.e. you don't have to buy a house and have a mortgage. Nobody is forcing you. Rental is an option.
You don't need a washing machine. Last time I looked, there were still launderettes.
etc.etc.

My point was that nearly everyone sees these things as necessities, (house, washing machine), and from there on in, pretty much everything which someone WANTS becomes something which they NEED, and then becomes something to which they feel ENTITLED, and which they then borrow money.

i can see what you are saying, we get one form of debt and that seems ok so we start using others. But mortgages.... thats not a debt in the same way as HP or finance on a washing machine. its investment. for a start, rent can easily be twice as much as mortgage payments so not really very clever. secondly, once you've paid your mortgage, while in your working years, you can sit back and not pay anything until you pop off the mortal coil.

problem is when you go to get a mortgage and you are then offered csahback and then loans every month with the statement. so people dont see the difference. With the entire economy is geared to making you want and buy things you dont need, from 5 bladed razors to a new BMW it becomes too easy, and sadly few things bought today will last 20 years.

 

[Rambo]

Debt is all relative though isn't it?

It's all about your ability to pay it off, not how much you've got.

Argueably a 'serviceable debt' isnt a debt at all. Ie a Mortgage, although your circumstances may change ie lose your job in which case it can become un serviceable, which is also known as 'up shit creek...'

 

[Curious Orange]

There's one just up from the back entrance to Guildford station, think there's a direct service from Southampton.

There are at least TWO laundrettes in Guildford, 'cos there is one opposite the Castle Car Park too - has proper 1960's signage and everything!

 

[Gwylan]

Both of these end up costing you more money in the long run if you take the non-purchase option. 300 quid washing machine + whatever electricity it uses + 6 quid a week on washing powder vs. 25 quid a week launderette (or whatever it costs these days) = buying the washing machine is substantially cheaper over a year even.

It's uch less than a year. I don't know how much a launderette costs - say a fiver a pop, add in £3 to get there, that's £56 a week; you'd pay for a washing machine in about six weeks. There's also the time factor, while the washing machine's on, we can get on with other chores (as well as the hour travelling time there and back). I can understand students using launderettes but who else would?

Part of budgeting properly is knowing when to buy and when not to. I'm all for not replacing goods until they're kaput but frittering away money for the sake of not owning something doesn't smack of financial prudence to me.

 

[Alex Alex Dawson oo! oo!]

Exactly, in my book there is affordable debt and out of control debt! I would never buy anything on tick unless I knew it could be paid off quickly or within our means. My mate told me the other how much she owed on credit and store cards and I was gobsmacked, it would take a re-mortgage or selling her house to pay it all back, and they make minium payments and just keep spending each month!! I dont know how or why people do it, and I'm sure loads of people live like that. I couldnt sleep at night knowing it was out of control like that.

We had some friends who operated like your mate. They also used to remortgage their house regularly and withdraw the equity to reduce the cc bills and/or fund some lavish hols, new cars etc. 2-3 years later it all started again.
Well, they split up about 2 years ago; the divorce procedings are very bloody with both parties blaiming the other for outrageous spending and the house now looks like it's going to be reposessed.

 

[maffew]

It's uch less than a year. I don't know how much a launderette costs - say a fiver a pop, add in £3 to get there, that's £56 a week; you'd pay for a washing machine in about six weeks. There's also the time factor, while the washing machine's on, we can get on with other chores (as well as the hour travelling time there and back). I can understand students using launderettes but who else would?

I would. And I'd WALK there once a week, not every day.

Guess it depends where you live and if you have a family and stuff

 

[Race]

We had some friends who operated like your mate. They also used to remortgage their house regularly and withdraw the equity to reduce the cc bills and/or fund some lavish hols, new cars etc. 2-3 years later it all started again.
Well, they split up about 2 years ago; the divorce procedings are very bloody with both parties blaiming the other for outrageous spending and the house now looks like it's going to be reposessed.

The scary thing is though, after gaining all this debt there isnt anything much to show for it all!! My mates dont have flash cars, house, clothes etc, they have had a few nice holidays but apart from that bugger all to show for all that spending! If I was that deep in shit I'd at least like a shiny new car on my driveway or all the mod cons in my home to look at and make use of, not just a credit card statement each month as a reminder of how badly off I am!

 

[Gwylan]

I would. And I'd WALK there once a week, not every day.

HAve you seen how much washing a family of four goes through? We do about 8 or 9 washes a week. And why walk two miles with a bag of heavy washing? There's not just a cash factor, there's a time factor too...people don't just have three or fours to spare

As I was saying, there are such things as false economies - and going to a launderette is one of them.