Are we in a bubble looney economy

[I1L2T3]

5 hours ago, ECCOnoob said:

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.

 

 

Nobody is arguing against debt as a vehicle for achieving certain things like purchasing a house, a car or for starting a business. That is the way things work.

[L00b]

The OP has got a point, after a fashion, in that there is an ongoing mobility underway from ownership models (e.g. hire purchase) towards renting models (e.g. leases, subscriptions).

 

People still pay for the same commodities (for cars, personal travel; for electronics, communication and/or entertainment), but don't own  -or end up owning- the assets anymore.

 

It's a choice, I suppose.

[I1L2T3]

1 hour ago, L00b said:

The OP has got a point, after a fashion, in that there is an ongoing mobility underway from ownership models (e.g. hire purchase) towards renting models (e.g. leases, subscriptions).

 

People still pay for the same commodities (for cars, personal travel; for electronics, communication and/or entertainment), but don't own  -or end up owning- the assets anymore.

 

It's a choice, I suppose.

It’s a remodelling of the finance system to unpin debt from the usual forms of security, like having a steady job and income or a property to act as security. It reflects the way the economy is changing: more renters, more gig economy jobs. It’s bleeding into everything: lease vehicles, mortgage multiples replaced by affordability assessment, increase in guarantor loans etc...

 

The lack of a solid financial foundation for an applicant is not as much a barrier any more. And younger people are more and more conditioned to having huge amounts of debt.

 

These are sad times. This isn’t making younger people I talk to happy. It racks them off.

 

 

[craig12]

im sorry but I still feel my points valid , young ones today wouldn't dream of buying a 2 bed terrace like I did , and they wouldn't consider buying a 09 plate car , with a good service history at £2500 , they'll want to step into the new 4 bed detatched house , and the lease option bmw m3 , as I say whats wrong with living within your means , can you imagine what these big house mortgages will be when the mortgage rates go up for the young couples , I remember 14% interest rates when we joined the erm 

[Robbiet]

29 minutes ago, craig12 said:

im sorry but I still feel my points valid , young ones today wouldn't dream of buying a 2 bed terrace like I did , and they wouldn't consider buying a 09 plate car , with a good service history at £2500 , they'll want to step into the new 4 bed detatched house , and the lease option bmw m3 , as I say whats wrong with living within your means , can you imagine what these big house mortgages will be when the mortgage rates go up for the young couples , I remember 14% interest rates when we joined the erm 

You have echoed what,I've been trying to get across to my grandchildren

[alchresearch]

1 hour ago, craig12 said:

im sorry but I still feel my points valid , young ones today wouldn't dream of buying a 2 bed terrace like I did , and they wouldn't consider buying a 09 plate car , with a good service history at £2500 , they'll want to step into the new 4 bed detatched house , and the lease option bmw m3 , as I say whats wrong with living within your means , can you imagine what these big house mortgages will be when the mortgage rates go up for the young couples , I remember 14% interest rates when we joined the erm 

I have to agree with that from my experience too.

 

I've also known a few people come a cropper when they car lease has expired and they've been charged for doing too many miles and overpriced repairs to alloys.

[tinfoilhat]

11 hours ago, L00b said:

The OP has got a point, after a fashion, in that there is an ongoing mobility underway from ownership models (e.g. hire purchase) towards renting models (e.g. leases, subscriptions).

 

People still pay for the same commodities (for cars, personal travel; for electronics, communication and/or entertainment), but don't own  -or end up owning- the assets anymore.

 

It's a choice, I suppose.

This^^^^^ This annoys me very much. No longer can I spend X amount on software, use for as long as I want before I choose to upgrade, oh no you have to commit to a lifetime of £30 a month, and it's never mine. 

[craig12]

the system is rigged , and not in your favour please get out of it ,pay off your cards , don't take any more debt, don't sign any contracts longer than 12 months, buy a second hand car over 6 years old , buy a small house with a small mortgage , do whatever to beat the government  and have more money in your pocket to enjoy with your family😊

Edited December 3, 2018 by craig12

[I1L2T3]

On 12/3/2018 at 8:16 AM, craig12 said:

im sorry but I still feel my points valid , young ones today wouldn't dream of buying a 2 bed terrace like I did , and they wouldn't consider buying a 09 plate car , with a good service history at £2500 , they'll want to step into the new 4 bed detatched house , and the lease option bmw m3 , as I say whats wrong with living within your means , can you imagine what these big house mortgages will be when the mortgage rates go up for the young couples , I remember 14% interest rates when we joined the erm 

It is valid. Definitely.

 

there used to be a saying that you bought your biggest house and your best car in your 40s after a couple of decades of working hard to establish yourself.