Wonga no longa!

I agree. So many life skills schools could teach, instead of the pointless stuff they do. Mandarin would be a more worthwhile second language than the European ones they get to choose from. Could learn them the theory side of driving, mortgages, interest rates and plenty of other stuff.

 

I have had a payday loan in the past. Car needed a new tyre (puncture) a couple of days before pay day and I needed it to get to work and pick my daughter up.

At the time though I knew I was due a large overtime payment and could meet it easily.

I did apply for one later when I was more solvent and was turned down. Cant't remember the whys for that one though.

 

Fair enough - just shows how tight people's budgets are that many don't even have £50-£100 in savings to cover such a thing.

 

Most do. The new GCSE is much more stringent and requires this kind of knowledge. Interest rates and time to pay off loans is within the new maths curriculum.

 

Oddly enough I have just had to buy my cousin a new tyre, she doesn't get paid until tomorrow. She's currently in the middle of getting divorced and just didn't have the money. She was going drive around on a space saver until then.
Also a couple of months ago my work had a payroll problem and payday was going to have to move from a Friday to Monday. The amount of people who were stressed and saying it was a disasterwas a real eye opener. Luckily they were able to solve it get the money in. I almost felt guilty when people where asking why I wasn't stressed about it.
A lot of people are living right on the brink.

 

Absolutely, I don't think many people realise this, but in my job it becomes very evident and is a real concern given likely continued rate rises over the next year, Brexit etc.

 

You're right but (no disrespect to anyone personally here) the majority of the time that is through choice. For once I'm not talking about those on benefits etc but people in full time employment. The amount who work with me who have NO money left by payday is ridiculous and we get paid weekly too. But when you talk to them quickly realise why they have no money and in every case I've come across so far it's choice.

Get paid on a Friday.
Me: off out to Tesco today for Friday big shop. I fancy fish tonight so best make sure I buy some.
Them: on a Friday? Get a takeaway like me. Friday and Saturdays are takeaway nights.
*fast forward to tuesday*
Me: I'm going for a sandwich for lunch, do you want one?
Them: I can't we don't get paid till Friday and I'm skint.

Or on a Tuesday
Them: went to Meadowhall last night. Bought a new shirt for going out this weekend.
Me: how much?
Them: £180 (genuinely happened a couple of weeks ago)
Me: £180 for ONE shirt?
Them: yeah but it's nice.
*fast forward a day*
Me: somebody is leaving this week do you want to put a couple of quid in a card?
Them: I can't I'm in my overdraft.

The amount of people who simply don't care about their finances is astonishing. They don't care about the future or the ramifications of their actions.

 

Oh I can believe it I see all the same sort of things. £180 on a shirt is just plain crazy when it means you will run out of money mid week.
We get paid monthly and last year our regular payment day was moved 5 days earlier in the month.
One woman said to me she had to alter all her direct debits as if she didn't she would spend the money before they came out. How can anyone function with that kind of attitude?

 

That's the problem. A lot of people's attitude stinks because they know or hope that someone will bail them out. For some that's their parents, for others it's friends and some just believe that the government or banks will save the day. The problem with that attitude is that it encourages others to live in the same way and before long its widespread. The other problem is that people who genuinely need help don't get it because there is only so much to go round and the selfish are taking advantage

 

I agree, and I've actually used Wonga. There's a big stigma against it, but I was basically exactly the type of customer that they always pretended they had and wanted. It's a good few years back, but as I remember it I was going on a weekend away and an unexpected bill left me a bit short on the Friday before I left. At the time I didn't have a credit card, so I borrowed a hundred quid or so off them for three or four days until I got paid. Cost me something like a tenner, which is usurious when you do the maths, but it seemed reasonable at the time considering I could get it paid into my account within a couple of minutes and it was either that or stay at home.

I knew that it was just a cash flow thing and I could easily cover it out of my salary, though. If I'd got into a situation when I was borrowing to pay everyday bills rather than for pleasure then that could have got sticky very quickly. So overall I actually really appreciated the service, but I'm well aware that I'm in a tiny minority there.

 

You say this as if they dislike the idea of debt.

 

I was listening to something on Radio 4 the other day about the differences between this generation and previous generations, and one thing that stuck in my mind was a comment one of the contributors made. It was along the lines of, while previous generations saw a 9-5 job, nice possessions and a home as something to be aspired to and so would save and work towards that goal, today's generation see it as their right to have them, and simply spend money they don't have in order to live this way.

It sort of surprised me and I have absolutely no idea if it is true, but I guess it could partially explain why people behave in the way SuperTyke describes above.

I have to say I'm the opposite of this mentality - I've always been cautious about my financial situation changing and lived within my means - probably because I lost the first job I had after a few months, so have never been in debt, apart from a mortgage.

 

Sorry Dreamboy, can't resist. 'Could teach them'

 

I think a lot of that is because this generations parents are the most well off so they grew up with things being bought for them. When I was young it was holidays at Mablethorpe, a rented TV and if I was lucky a KFC once every few months as a treat. Fast forward to the 20 year olds of today and when they were growing up there was a plasma on the wall, sky TV, mobiles all round, holidays to tenerife and takeaways weekly. It's how you're brought up around money and when I was a kid money was sparse so it was more valued and by me still is. Those who grew up when luxuries were around them see it as the norm and so they spend what they don't have to live that standard of life.

 

WELL SAID THAT MAN.

I am a volunteer with my local credit union. We are here to help people to avoid the clutches of the pay day lenders. We will try to help people with money problems, not exploit them.

 

Yes, I can relate to your experience growing up - similar to me in many ways. I've found that kind of upbringing conditions the way I think about money now, so even if I can afford to buy something nice or slightly extravagant I have to work hard to justify the expense to myself. As a result the spendthrift bloke with a tenner left in his bank account at the end of the month seems to have better standard of living than I do! Old habits die hard I suppose, but I know I wouldn't be able to sleep at night if I were to live like that.

 

This is the entire reason that I got pocket money - so I learnt (or is that learned?) how to manage my money.

 

There is a lot of truth in that.

It is a society of people that seem to need to have everything they want - and now. It is a dangerous thing.

Worse is that there is no future planning at all.

For example me and the Mrs both work full time, I’m on decent money but I’m working on a self employed contractor basis and when the bottoms falls out of the sector, likely in twelve months or so, I don’t know what I’ll be doing or what I’ll be earning.

We do have debts, mainly the mortgage, and the others are manageable. (Loans for cars etc). Given the uncertainty of my future employment, this might be a risk. We are spending less than we earn, including debt payments, though will the few quid we are saving be enough as and when the rainy day comes? I have no pension provision to speak of, and I’m 35. We have put a bit in savings for the kids to try and help them out in the future as well as our savings, but I suspect we are the minority in doing such things.

However, all that said, what jobs, on ‘permanent’ contracts, are safe anyway?

In the interest of balance, did the radio 4 programme mention that the last generation, if they had a 9-5, would have relatively comfortably afforded a mortgage on a decent house on that one 9-5 wage, and would only have had to save up maybe 3-6 months for a deposit too?

These days, a couple who both work full time on an average wage would do well to be able to afford a three bad semi and be granted a mortgage for it.

My generation and my kids’ generation got/will get crippled with debt if they dare(d) to go to university to try and get a better paid job/long term career prospects.

The phrase ‘you’ve never had it so good’ doesn’t apply anymore I don’t think.

In twenty years time I can see home ownership being very rare for normal working folk.

 

.

 

Food banks & local help are the way. Not high interest loans. **** Wonga & Mike Ashley. Cnuts