Puts our pay into perspective

[d000hg]

Flip side is that I know some of the people with zero savings - £100 is a night out for them too. It's a different mind set when you're on minimum wage, rented accommodation, bit of support from the state, etc. Aspirations are different, as a priorities. Priorities are food, clothes and getting drunk at the weekend to make up for yet another dull week.

This is quite accurate. I'm always amazed at how much people spend on a night out drinking and it doesn't actually vary that much based on income unless you're drinking £10 cocktails and champagne. It's one reason WHY they have no savings and are always struggling for cash.

If you're on benefits then realistically when you get into debt there's nothing they can do about it as you've nothing to take.

[The_Equalizer]

This is quite accurate. I'm always amazed at how much people spend on a night out drinking and it doesn't actually vary that much based on income unless you're drinking £10 cocktails and champagne. It's one reason WHY they have no savings and are always struggling for cash.

If you're on benefits then realistically when you get into debt there's nothing they can do about it as you've nothing to take.

Ironically you need about £700 to go bankrupt, but you're right. My sympathy for banks/money lenders is around zero mind you.

[NotAllThere]

Ironically you need about £700 to go bankrupt...

Maybe you could get someone to lend it to you.

[The_Equalizer]

Maybe you could get someone to lend it to you.

I don't do debt thanks all the same.

[LondonManc]

This is quite accurate. I'm always amazed at how much people spend on a night out drinking and it doesn't actually vary that much based on income unless you're drinking £10 cocktails and champagne. It's one reason WHY they have no savings and are always struggling for cash.

If you're on benefits then realistically when you get into debt there's nothing they can do about it as you've nothing to take.

Totally different mindset. They'll take a sub prime loan, not pay it back and simply accept a CCJ or similar. That's why the sub prime lenders went first in 2008/9 and conversely why loans were typically 79% APR and upwards; they were rating for risk. It's also a different mindset for the borrowers - how much a week will it cost me to borrow a grand is their way of thinking.

Don't forget that many of these people voted for Brexit because they are fed up of the crap forced upon them by successive Labour and Tory governments. They're fed up with the status quo and this was their way of lashing out.

[LondonManc]

Ironically you need about £700 to go bankrupt, but you're right. My sympathy for banks/money lenders is around zero mind you.

The thing about the traditional sub prime lenders (like London Scottish that bought it in the crash) was that they were a safer alternative for these people than a loan shark, which, with a poor credit history, was their only other option of getting hold of money. Doorstep collected loan repayments and all the admin that was involved with it had to be paid for too, yet they were rating for risk below 200% when Wonga and co are up around the 500-1000% mark.

Financial management should be taught at school instead of something like RE.

[The_Equalizer]

Totally different mindset. They'll take a sub prime loan, not pay it back and simply accept a CCJ or similar. That's why the sub prime lenders went first in 2008/9 and conversely why loans were typically 79% APR and upwards; they were rating for risk. It's also a different mindset for the borrowers - how much a week will it cost me to borrow a grand is their way of thinking.

Don't forget that many of these people voted for Brexit because they are fed up of the crap forced upon them by successive Labour and Tory governments. They're fed up with the status quo and this was their way of lashing out.

Then again the lenders weren't exactly prudent. I know of some quite 'interesting' lending practices on the run-up to 2008.

[LondonManc]

Then again the lenders weren't exactly prudent. I know of some quite 'interesting' lending practices on the run-up to 2008.

You mean like the self-cert mortgages and the 6 times your income that were being offered?

[SueEllen]

Financial management should be taught at school instead of something like RE.

Teachers cannot teach what they don't know plus the range of loans and credit options changes all the time.

Anyway it's up to parents to teach their children as well.

[LondonManc]

Teachers cannot teach what they don't know plus the range of loans and credit options changes all the time.

Anyway it's up to parents to teach their children as well.

I'm not talking about individual loan products, I'm talking about the basics about current account, savings, pensions and then day to day things like bills, wages, tax, NI and things so that kids appreciate the value of money and how to look after it. My lad's 16 and a lot of his friends have said that they'd rather have had something like that than a subject they didn't like or even include it in their pastoral care sessions.