This Goverment.....

Ess_Three · Oct 13, 2008

Don't get me wrong...I'm not afraid of debt.
As long as it's risk assessed and managed debt.
I have no desire to limit my lifestyle in order to be debt free...nor do I feel the need to get in debt over my head in order to have bling-crap to impress the neighbours.

I spent a fortune on a car, a depreciating asset, which I was in debt for. But it was what I wanted to do, and the paid for part always covered the depreciation so no matter how my circumstances changed, I could always walk away debt free (but possibly car-less) and my mortgage wasn't at risk.
A home is important to me...but so are other things in life. I suppose it's all about proirities.

Spending on toys is fine by me...as is managed debt as long as the basics are covered. If they aren't however, people shouldn't go moaning when it all goes a bit Pete Tong and they risk their house.

HTC · Oct 13, 2008

After sitting in your car at inters Glen, I think I could put up with some managable debt

StrmsekS3 · Oct 13, 2008

i think a lot of people use university as a scape goat for debt and dnt get me wrong i had some as well less than 2 grand but friends have had upto 15grand but of course thats not so bad if you have a fair idea you will get a decent job like mike i know very well the oil industry and the wages have helped many ppl live good lives with lots of toys!
but when it comes to houses i think you have to tread super careful esp at the moment, i also think many ppl who were borderline for a morgatage 5yrs ago are going too start to struggle as all costs are rising and so will morgagtage rates!

only time will tell

Ess_Three · Oct 13, 2008

HTC said:
After sitting in your car at inters Glen, I think I could put up with some managable debt

I'm not sure I'd do the same again, now though.
Things have changed since early 2004 when I ordered it. With mortgages being uncertain, I'd not take the 'risk now.

Geordie Mike · Oct 13, 2008

StrmsekS3 said:
i think a lot of people use university as a scape goat for debt and dnt get me wrong i had some as well less than 2 grand but friends have had upto 15grand but of course thats not so bad if you have a fair idea you will get a decent job

Why someone would choose to get tens of thousands of pounds of debt doing some pointless degree that makes them no more qualified to say "would you like fries with that" is beyond me. God help my as yet unborn daughter if she asks me to support her through a media studies degree.

unkle · Oct 13, 2008

I think its rather clever to be honest, one minute this Government owns jack as we have sold off all the Utilities, Armaments, Powerstations, Telecoms etc etc.

The next minute the Government owns large parts of our major banking infrustructure, all bought at cheap knock down rate with our own money!

Personally though, I dont have much debt so not too concerned. Houses round these parts have been quite pricey for a few years, they stopped rising about April and now have started falling, Im hoping the property bubble bursts over xmas and prices come down quite sharply...

jdp1962 · Oct 13, 2008

AndyMac said:
Like many on here I'm **** scared of debt as I've seen what it can do to people. Apart from what's left on our Virgin One mortgage I owe nothing to no one. Even with the mortgage we have overpaid massively and that will be paid off in the next year. A friend of ours is about to go personally bankrupt, bought a house 2 years ago, cannot afford the repayments now his fixed rate has ended, spent a small fortune on all the toys for the place and cannot sell. Take in a lodger? No he doesn't want to do that, WTF?
When I bought my first house all the kit in it was borrowed or handmedowns, I had the sofa that came with the house for 4 years, took 10 years before I actually had some nice stuff. I just don't get it with the "must have the latest toys" mentality of today, it's really scary.
As for saving being outpaced by house prices, this has been the case, but not at the moment. If you'd bought a place a year ago at the top of the market you'd be screwed, as opposed to saving for a deposit a year ago, now you'd be laughing.
Ultimately gambling on the stock exchange and/or high interest offshore savings etc is just that, gambling. It's the respectable face of gambling, but it's gambling nonetheless. Doubt the gov't would bail you out if you lost your savings in Vegas, I don't see that's any different than the greed that drives investing in high interest savings schemes.

Spot on, Andymac, as ever. For every irresponsible lender, there is an irresponsible borrower. A credit facility is just that; a facility. It only becomes a debt when you spend it.

I am sick and tired of people who have acquired (not bought) every single acouttrement of modern affluent living on endless credit, and are now bleating because the taps have been turned off and from now on, they are going to be restricted to spending what they earn.

Just Plain Old · Oct 13, 2008

jdp1962 said:
I am sick and tired of people who have acquired (not bought) every single acouttrement of modern affluent living on endless credit, and are now bleating because the taps have been turned off and from now on, they are going to be restricted to spending what they earn.

I have a friend like that, only difference is he runs his own business and is aware of the risks he is taking. He is all to aware that, in his own words, he is only ever '3 Months away from losing everything'. But then again the same could be said for most people...........

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This Goverment.....

Ess_Three

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HTC

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StrmsekS3

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Ess_Three

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Geordie Mike

Yeee-haw

unkle

Beer God

jdp1962

Grumpy Old Man

Just Plain Old

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