Anna B Posted September 1, 2018 Author Share Posted September 1, 2018 What do you mean by "brakes on the banks" ? Some sort of legislation to make sure the same crisis as before didn't arise again. They deregulated the industry and didn't listen to the warnings, so should have reversed that at least. Or, better still, do something to deter the bankers from getting bonus greedy again. Or they could have slapped some regulations on rents to stop them rising to unaffordable levels, so people wouldn't need to borrow. Seems like nothing's changed. Link to comment Share on other sites More sharing options...
El Cid Posted September 1, 2018 Share Posted September 1, 2018 I don't think we know the half of it. You obviously don't, by your own words! Link to comment Share on other sites More sharing options...
Cyclone Posted September 1, 2018 Share Posted September 1, 2018 What gets me is all the effort that's been put into 'Austerity' for 10 years, and nobody's thought to put the brakes on the banks, especially after the last crash. How could you not know about the changes in legislation that were made to the banking industry if you're at all interested in this topic? The way that lending criteria was assessed was changed, no longer is it just on income, now it's about affordability and that has to include an assessment of interest rates increase. And more fundamentally to the banks the maximum legal minimum for capital/lending ration was increased quite significantly. The last crisis was all about mortgage mis selling, and so mortgage legislation has been tightened considerably. Personal debt is quite different and AFAIK no changes were made to that area. Link to comment Share on other sites More sharing options...
I1L2T3 Posted September 1, 2018 Share Posted September 1, 2018 Does it matter include student loans? Since that isn’t really a debt. How is it not a debt? I’m fed up with hearing this argument to be honest. It’s only not a debt if you have limited aspirations in life. Imagine deliberately trying to stay under the repayment threshold for 30 or 35 years. ---------- Post added 01-09-2018 at 08:38 ---------- What do you mean by "brakes on the banks" ? The banks haven’t changed much. They got away with it basically. There is little to prevent them creating another crisis. Link to comment Share on other sites More sharing options...
ez8004 Posted September 1, 2018 Share Posted September 1, 2018 How is it not a debt? I’m fed up with hearing this argument to be honest. It’s only not a debt if you have limited aspirations in life. Imagine deliberately trying to stay under the repayment threshold for 30 or 35 years. If you think having a student loan limits your aspiration, then you really have no idea what you are talking about. Have you actually worked out the repayments of a student loan? Work out how much you need to pay back on a loan of £50k from a salary of £40k. The student loan is nothing like a debt. It doesn't even show up on your credit file it doesn't even stop you getting a mortgage. Link to comment Share on other sites More sharing options...
realcockney Posted September 1, 2018 Share Posted September 1, 2018 Update in today's paper: 'Family debt hits a record £213 Billion, on credit cards, car finance and short term loans. This excludes mortgages, and is now £5.2 Billion higher than its previous peak in 2008 - at the start of the financial crisis.' 'The figures suggest millions of borrowers will struggle to ever repay what they owe. It means that if we suffer an economic downturn, consumers could lose their jobs causing a wave of loan defaults which would damage major banks.' So, here we go again... you mean people who spend more than they earn trying to keep up with the joneses ??? so yes here we go again some people not taking responsibility for themselves?? but hey its just easy to blame someone else? eh? Link to comment Share on other sites More sharing options...
mafya Posted September 1, 2018 Share Posted September 1, 2018 This time last year I rented my house, now I am in debt with a mortgage; a TV program can make peoples debt seem worse when included in the figures. I believe people do have a debt problem, we need to increase interest rates. The UK population has the 2nd worst debt according to Wikipedia, not sure how true that is. https://en.wikipedia.org/wiki/List_of_countries_by_external_debt My bold= Work out your mortgage payments if the interest rates went to 14% like they did once upon a time in Britain and then tell me if you would like interest rates to rise..... Link to comment Share on other sites More sharing options...
realcockney Posted September 1, 2018 Share Posted September 1, 2018 My bold= Work out your mortgage payments if the interest rates went to 14% like they did once upon a time in Britain and then tell me if you would like interest rates to rise..... i remember my first mortgage at that time when interest rates were 14-15% wow if that happens now there would be disaster, but back then we borrowed what we could afford unlike now where people take on far more than they could ever afford because they feel entitled!!! Link to comment Share on other sites More sharing options...
I1L2T3 Posted September 1, 2018 Share Posted September 1, 2018 If you think having a student loan limits your aspiration, then you really have no idea what you are talking about. Have you actually worked out the repayments of a student loan? Work out how much you need to pay back on a loan of £50k from a salary of £40k. The student loan is nothing like a debt. It doesn't even show up on your credit file it doesn't even stop you getting a mortgage. You owe money. It accrues interest. It stays with you for decades. It goes straight out your wages. You have to pay it back. It’s everything like a debt. I know couples who pay £400-500 a month between them in repayment. It may not stop you getting a mortgage but it impacts how much you can repay. It may not stop you getting a credit card but it impacts who much you can repay. It’s easy to be complacent in times of low interest rates, but if we did face a big rise in interest rates these loans could cripple many families. Link to comment Share on other sites More sharing options...
El Cid Posted September 1, 2018 Share Posted September 1, 2018 My bold= Work out your mortgage payments if the interest rates went to 14% like they did once upon a time in Britain and then tell me if you would like interest rates to rise..... I got a 10 year fixed mortgage, because I saw the possibility of increasing rates If rates do increase, it will be very slowly. Link to comment Share on other sites More sharing options...
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