Are we in a bubble looney economy

[craig12]

I think we are, looking at asset prices , houses, cars, car leasing, art, classic cars, theres some real debt out there and over priced none essential stuff people sign up to , you can feel summats coming , I think the bubbles bursting , anyone else think the same , just looked at a well known car maker lease option £4500 deposit and £350-£500 per month , who seriously wants that much debt in this climate/whatever happened to living within our means like our parents taught us ...and no I don't have a lease car I bought mine on a hire purchase agreement and its an 11 plate ive 7 payments left and its paid for , I have a small mortgage of around £350 pcm and that's too much as far as im concerned 

Edited December 2, 2018 by craig12

[Bargepole23]

29 minutes ago, craig12 said:

I think we are, looking at asset prices , houses, cars, car leasing, art, classic cars, theres some real debt out there and over priced none essential stuff people sign up to , you can feel summats coming , I think the bubbles bursting , anyone else think the same , just looked at a well known car maker lease option £4500 deposit and £350-£500 per month , who seriously wants that much debt in this climate/whatever happened to living within our means like our parents taught us ...and no I don't have a lease car I bought mine on a hire purchase agreement and its an 11 plate ive 7 payments left and its paid for , I have a small mortgage of around £350 pcm and that's too much as far as im concerned 

Other people may earn more than you, of course. So where you may see £500 per month as unmanageable, some will see it as easily affordable and very much within their means.

Edited December 2, 2018 by Bargepole23

[craig12]

I just knew that answer was coming , 

[I1L2T3]

Yep, it’s not about the amount of debt any more but about the affordability. High debt load is the new normal.

 

Affordibility = being able (in theory) to meet repayments.

 

A lot of this predicated on the idea that assets will only keep rising in value.

 

It has kind of worked out for a lot of people. There isn’t really much to deter them.

[craig12]

16 minutes ago, I1L2T3 said:

Yep, it’s not about the amount of debt any more but about the affordability. High debt load is the new normal. 

 

Affordibility = being able (in theory) to meet repayments.

 

A lot of this predicated on the idea that assets will only keep rising in value.

 

It has kind of worked out for a lot of people. There isn’t really much to deter them.

high debt load is the new normal // god help us all 

[ECCOnoob]

1 hour ago, craig12 said:

high debt load is the new normal // god help us all 

God help us all??    What?

 

Debt is part of society and has been for generations.   Even back in torchlight days systems of loans and borrowing was in place.

 

For the mordern world its THE way of getting things done.   Its THE system of creating and building things, providing infrastructure, providing new technology.

 

For us regular joes is THE only way for us to live our lives.    The vast majority of people dont have 80k / £100k / £200k sitting around under the bed to buy a house so they have a "huge debt" of a mortgage in order to buy one.      The vast majority of people dont have 8k / 10k / 20k to hand to buy a car so they have a "huge debt" of a loan to pay for it.     The vast mojority dont have the immediate disposable income they need to buy and/or replace all the consumer goods they want so they buy it off bit by bit through credit card arrangements.

 

That in turn keeps the flow of money through the retailers constant and ensures that their own employees keep in a job and have an income of thier own.   Round and round it goes.

 

The companies and organisation that employ us regular joes and provide our wages dont have millions of pounds just sat there in the bank to pay for new stock or new premises or invest in equipment to enable us to manufactuer goods.   So, they have "even huger" debts to pay for it.

 

We would certainly be dragged backwards if everything was cash only pre-paid before delivery.

 

The bigger issue is not the existance of debt, but responsbile management of it.   Affordabilty and Responsible Lending are what needs to be scruitanised not the existance of debt itself.

 

 

Edited December 2, 2018 by ECCOnoob

[altus]

5 hours ago, craig12 said:

I have a small mortgage of around £350 pcm and that's too much as far as im concerned 

If that's the case, wouldn't you be better off paying some of your mortgage of early rather than investing in dubious precious metal investment schemes?

[craig12]

4 hours ago, altus said:

If that's the case, wouldn't you be better off paying some of your mortgage of early rather than investing in dubious precious metal investment schemes?

hang on I do know the answer to this , itll come to me just give me a minute, 

oh yes I remember 

its a mortgage where you can only pay up to 10% off each year , another british mortgage con , cant have anybody paying it off now can we 

[ECCOnoob]

23 minutes ago, craig12 said:

hang on I do know the answer to this , itll come to me just give me a minute, 

oh yes I remember 

its a mortgage where you can only pay up to 10% off each year , another british mortgage con , cant have anybody paying it off now can we 

Not immediately no.      I am sure it would have been explained to you when you chose to accept the product.

 

The bank is offering X amount of capital upfront to enable you to get something you want.  In return, it stands to reason, that they are only doing so on the condition that they get something back for their service.   

 

You accepted the terms.  You signed the contract. 

 

Its business. 

 

 

[Bargepole23]

7 hours ago, craig12 said:

I just knew that answer was coming , 

Presumably then it's OK for you to have a mortgage where you pay back 350/month. If someone wants to borrow more because they can afford more, because they earn more, then they are stupid/reckless?