Britain stuck with high inflation, meagre growth..

[Robinho]

Maybe, right now, but you don't know what those interest rates will be in a year's time. Having debt exposes you to risks of higher interest rates, having savings exposes you to risks of lower interest rates or higher inflation. But while the debt remains repayable your savings belong to you; you might lose your savings, but then you've lost what you could apparently miss. Even if inflation makes your debt smaller in relation to your income, you still have to repay it, so you can't claim to make a net gain.. You can only do that if you use the loan to buy something which increases in value or provides a reliable return, which is speculative; that's fine for some people, but not for me.

I'm not saying make crazy loans and spend all the money on cocaine and strippers. The government made it stupid to save though.

[EternalOptimist]

I'm not saying make crazy loans and spend all the money on cocaine and strippers. The government made it stupid to save though.

you keep using words like fool and stupid, thats what I dont understand.

People who have a lot of savings and no debt may not be making a packet of interest, and they may be losing a bit to inflation right now, but does that make them fools ?
Someone who has a £200,000 secured loan and a credit card constantly maxed out is more sensible in your opinion ?

[RasputinDude]

The government made it stupid to save though.

I agree there. But it doesn't mean that we shouldn't. Someone with even a small (even if the value is falling) amount of savings and no debt is much better off than someone with lots of debt and no savings.

[Old Hack]

The only debt we have is mortgage debt, and we're paying them down as much as we (and our tenants) can. My opinion, is that savings are being eroded by inflation, but as the houses we own (apart from where we live) are in the south east, prices are rising, so the only way to make, what I consider to be, risk free money, is to pile it into the mortgages, as it's giving us a real world return, above interest.

Cashing in next year tho. I still think we've not hit rock bottom yet.

[Old Hack]

I agree there. But it doesn't mean that we shouldn't. Someone with even a small (even if the value is falling) amount of savings and no debt is much better off than someone with lots of debt and no savings.

Unless they plead poverty and get the interest stopped on their debts.

[EternalOptimist]

I agree there. But it doesn't mean that we shouldn't. Someone with even a small (even if the value is falling) amount of savings and no debt is much better off than someone with lots of debt and no savings.

whs

[Robinho]

I agree there. But it doesn't mean that we shouldn't. Someone with even a small (even if the value is falling) amount of savings and no debt is much better off than someone with lots of debt and no savings.

Not unless they have invested that debt into something, like a house for example.

[DimPrawn]

The way I look at it......

Cash it in and throw it all away, yeah
Never needed any of it anyway

So you crash, and you burn
Sometimes the road will twist and turn
Some of this, less of that
Forget all about the map California road

Cash it in and throw it all away
Never needed any of it anyway

Cash it in and throw it all away, yeah
Never needed any of it anyway

Cash it in and throw it all away
Never needed any of it anyway

Cash it in and throw it all away
Never needed any of it anyway

[Mich the Tester]

Not unless they have invested that debt into something, like a house for example.

Which is entirely speculative.

[Robinho]

Which is entirely speculative.

It's not, due to the government policies which i am talking about.