Ms Macbeth Posted January 20, 2011 Share Posted January 20, 2011 Being in a position with zero personal debt is excellent in the current economic climate. The only thing better (IMO) would be to also have a mortgage on a really low fixed rate, and be able to overpay to insure against harder times (if and when they happen). We're on a fairly low income (I'm retired & OH semi retired), but we have no debt, and for that I'm grateful. Since Christmas, I've purposely watched what I spend, and have cut down on non essentials. I've bought no clothes (apart from some tights), no magazines, and the only book I've bought was from a charity shop - £1. I shop every month by credit card and pay it off in full - this month I've spent about 1/3 less so far. I think we get used to a certain level of spend and feel deprived if we can't manage it. However, I do feel for people with big rent or mortgage bills. I can remember what it was like with interest rates in double figures and two children to feed and clothe! We weren't debt free then, plus both my OH and I smoked in those days. We'd really struggle now if we were still buying cigs at £6-7 a packet. As far as what the government are doing - I'm no economist, so I don't feel qualified to answer, but I've experienced life during many different governments, and every time there have been different winners and losers. For instance, I benefitted because I worked for a nationalised industry and our pay went up noticeably thanks to the unions in the 80s. Then we were privatised and in the 90s I, like lots of others, was made redundant. So I view the changes like swings and roundabouts. And I've just seen Dozy's post, and I agree with the 'do something positive'! Link to comment Share on other sites More sharing options...
maxofe Posted January 20, 2011 Author Share Posted January 20, 2011 My bold No, you're not - worrying about it will do bugger all to help your situation. Some things - like our expenditure - are within our control, but if the Government decides to increase taxes or whatever, there's very little we can do about it. Do something positive instead of worrying - draw up a budget of all your incomings and outgoings and see where you can trim off some of the spending, then start putting that money into a savings account, so you have something for a rainy day. thanks for that, i know worrying is a complete waste of time and energy. i'm ok for rainy days, but the way prices are rising the savings will get used for every day things like running the car and little extras that were affordable before. my motor insurance brokers have already tried to totally shaft me this week, wanting 3 times what we paid last year! i went on go-compare and there are at least 30 companies out there offering cheaper deals....so why cant my existing company?? i went in tesco yesterday, all the prices are aprox. the same but all the weights/packets are tiny....do they think we wont notice? basically i'm sick of being treated like an idiot:suspect: Link to comment Share on other sites More sharing options...
quisquose Posted January 20, 2011 Share Posted January 20, 2011 Neither are those debts the fault of the last government alone. Anyone who tries to say otherwise is delusional. The position we find ourselves in now is due to the failings of successive governments. As Kelvin MacKenzie () correctly pointed out about government (all governments) spending in , it's not their money, it's easy to make promises with other peoples money. Borrowing to fund spending = Taxing future generations. It's a selfish pyramid scam. Link to comment Share on other sites More sharing options...
maxofe Posted January 20, 2011 Author Share Posted January 20, 2011 Thanks Ms Macbeth for you imput. i remember the bad old days in the 80's/early 90's. we lost our house due to just not earning enough! seems mad now when the house only cost £17K!! I can accept that we all go thro' ups and downs with different political parties in power. i feel like ive cleared my own debts through hard work and sacrifice and now i'm paying for everyone elses, LOL! Link to comment Share on other sites More sharing options...
Dozy Posted January 20, 2011 Share Posted January 20, 2011 thanks for that, i know worrying is a complete waste of time and energy. i'm ok for rainy days, but the way prices are rising the savings will get used for every day things like running the car and little extras that were affordable before. my motor insurance brokers have already tried to totally shaft me this week, wanting 3 times what we paid last year! i went on go-compare and there are at least 30 companies out there offering cheaper deals....so why cant my existing company?? i went in tesco yesterday, all the prices are aprox. the same but all the weights/packets are tiny....do they think we wont notice? basically i'm sick of being treated like an idiot My bold I should try and get used to it, if I were you, it's what all politicians of whatever party are best at! Supermarkets are just following their example. At 58, I've gone through recessions before, and survived. One of the problems is that the media just loves to make it sound worse than it is, and it can get you into a gloomy mind-set. I've been trying "own brands" for some food at the supermarket - hell of a lot cheaper and sometimes it really is as good as the "branded" stuff. But I'm still only eating Heinz beans!! Link to comment Share on other sites More sharing options...
maxofe Posted January 20, 2011 Author Share Posted January 20, 2011 But I'm still only eating Heinz beans!! LOL, yes i would live off beans before buying the cheapo ones (hope that makes sense!) Link to comment Share on other sites More sharing options...
Dozy Posted January 20, 2011 Share Posted January 20, 2011 LOL, yes i would live off beans before buying the cheapo ones (hope that makes sense!) Absolutely! There are some things that I would rather do without, if I couldn't have the ones I like. I'd rather have cheesy baked potatoes, or beans on toast, than eat cheap, fatty, gristly meat. Link to comment Share on other sites More sharing options...
Mecky Posted January 20, 2011 Share Posted January 20, 2011 Someone has to make some tough decisions to reduce the national debt, the previous government seemed to feel borrowing more would solve the problem. Why do they? Why did the previous government have to borrow the money in the first place and how much did we borrow, because from I've heard the amount seems to differ? Link to comment Share on other sites More sharing options...
DaFoot Posted January 20, 2011 Share Posted January 20, 2011 Why do they? Why did the previous government have to borrow the money in the first place and how much did we borrow, because from I've heard the amount seems to differ? As much as I'm aware borrowing is part and parcel of the economics of state, I still don't like the idea we owe vast amounts of cash to other nations/banks. Some of the borrowing was no doubt required and spent on meaningful useful things, other money has been spent in incredibly wasteful ways (eg. look at failed/canned IT systems that cost a fortune before the techies actually start). Figures will always vary depending where the figures were sourced and the poilitical leanings of the person presenting them, but all the reports I've read about national debt suggest unsustainable borrowing has been the norm for too long. Link to comment Share on other sites More sharing options...
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