One in three families

[Love2print]

Don't forget an education too. There's no way at 18 I could afford to spend £27,000 on a degree course.

 

We start young people off with debt - its no wonder they get used to it and put things on credit. I don't thing many even really think about how much they owe and how much a mortgage, student debt, car loan, etc. will cost them over the years. And should the worse happen and they lose their job how long they can afford to live.

[Chelle-82]

I think there is a generational problem in this. People with often quite good standard of living as children/teenagers are finding that they can't afford to live in as nice an area as their parents or afford the same kind of stuff. We expect to be able to provide more for our children than our parents did for us, but for most this is an impossibility and so they are over stretching themselves.

 

That is very true..

 

I went from living with the parents in a 5 bedroom detached house in a very nice area to a small terraced house on one of the busiest roads in sheffield!! it was a shock to the system forutnately i had very financial savvy parents (can't believe i'm saying this) who were RIGHT!!!!

[Danny_Boy]

It's not hard to believe at all. It's worth noting though that there are insurance policies available to cover these kinds of eventualities. I am self employed so if I was off sick I would get nothing. I pay £25 a month for £1500 worth of sick pay, that would probably jst about cover the mortgage and bills but it's better than nothing.

 

I have seen so many examples of people off sick with no cover really struggling, not worth the risk when you can insure against it for the price of a few pints.

[Olive]

Also, people seem to want to stretch to their maximum borrowing rather than buy a home well within their budget..

 

People seem to want the better house or the better car or the better designer furniture etc rather than have something more suited to their income and have financial stability..

 

That can (or perhaps could) often make financial sense though, especially when house prices were going up. Moving is an expensive business.

[Bargepole23]

Don't forget an education too. There's no way at 18 I could afford to spend £27,000 on a degree course.

 

Repayments don't start until your pretax earnings are over 21K, and at 30K, the repayments are £67/month.

 

Seems pretty affordable to me.

[tinfoilhat]

We start young people off with debt - its no wonder they get used to it and put things on credit. I don't thing many even really think about how much they owe and how much a mortgage, student debt, car loan, etc. will cost them over the years. And should the worse happen and they lose their job how long they can afford to live.

 

That's not strictly true. Not everyone goes to university and not everyone who doesn't go to can't afford to buy a house.

[biotechpete]

Repayments don't start until your pretax earnings are over 21K, and at 30K, the repayments are £67/month.

 

Seems pretty affordable to me.

 

Not as upfront cost though, which is what we are talking about.

[Love2print]

That's not strictly true. Not everyone goes to university and not everyone who doesn't go to can't afford to buy a house.

 

Sorry if I wasn't clear I didn't mean all young people. But I just meant that a lot of young people are being started off early with debt and perhaps this early start to debt encourages a more relaxed attitude to more debt. I never remember being given financial advice in regards to debt during my school or college days. When I took out my student loan the advice was that I would be earning x amount more than non-graduates so the loan didn't really matter. Plus if I earned below a certain amount then I wouldn't pay it back.

 

There was an attitude of who cares because your not paying it back now. Worry about it later and I think that attitude gets passed onto other debt.

[Chelle-82]

Sorry if I wasn't clear I didn't mean all young people. But I just meant that a lot of young people are being started off early with debt and perhaps this early start to debt encourages a more relaxed attitude to more debt. I never remember being given financial advice in regards to debt during my school or college days. When I took out my student loan the advice was that I would be earning x amount more than non-graduates so the loan didn't really matter. Plus if I earned below a certain amount then I wouldn't pay it back.

 

There was an attitude of who cares because your not paying it back now. Worry about it later and I think that attitude gets passed onto other debt.

 

I agree 100% with what you say..

[willman]

My mortgage is almost at an end - but i can't even tick the 3 month box.

6 months unemployment took care of all my savings, and 18 months back in work hasn't provided sufficient income to rebuild any savings.

 

I actually bet the true figure is higher depending on which socio economic group you ask, oh and the fact that honesty in these matters always attracts the holier than thou brigade.

Edited August 9, 2016 by willman