Debt and the pandemic - increased or decreased?

[andipandi]

I don't like living in a flat, I used to have a nice house, but the flat is ours, no mortgage. Hence, we have a life, we can make choices, because we have some disposable income, lots of people don't. My wife has the income, I'm the guy that does all that her income cant buy, and there's plenty of that (to do and deal with). Council tax is bad enough for band A, £145pm, I have no idea how people cope with the huge rents (and tenancy insecurity), in the private rented sector - the only sector available to most. I'm glad I was born when I was, there was the the fair rent system and one could afford to buy a flat or a nice little house, for not a lot. Back to the question, not loaded, but no debts, atm.

 

[Crewella]

.......... reading this thread you'd be amazed if any of us ever succumbed to the dreaded 'shinyitus'.

 

[scrumpox]

A mortgage is a secured loan so, IMHO, it is definitely a debt - it's just a very specific type of debt with a nice, cosy home to call your own at the end.

It's the one debt absolutely worth having. Not many people can simply afford to buy a house outright.

Unless your mortgage is on a flat with cladding issues. That's life changing debt for so many. It's absolutely appalling how those folks have been treated. You're damn right it's a debt, try telling them a mortgage isn't a debt, eh?

 

[crustyfolker]

i haven't noticed a difference, I have always been on top where money is concerned, if i can't afford it i will wait till i can as always been my motto. Debt is how the rich take advantage of the poor, with debt comes interest so you pay at least twice as much in some cases.
For me during the Pandemic, some things have cost more, taxi fayres has used up money i would have spent on a night out each week. but as with this the staying at home has saved some money, but due to me needing a carer for a few things the travel expense has been more as i have had to shield as much as possible.
According to the Government and local councils a single person over 25 can live off £78 a week this includes all bills including council tax which the Gov doesn't help you with like 6 years ago. add that 78 quid to the weekly cost of rent and council tax as a worker pays then you are talking £180ish a week in a council property. so change that to private rental costs you are closer to the £300 a week mark, which for minimum wage earners probably feel like it's not worth getting up to go work. Again its the rich with the advantage pushing the poor as far as they can into a life of poverty.
The only way to fix the problem is to take money from those who have more than enough to live off. Even the likes of Bill Gates, Bezo, Trump can live off £78 a week according to our Government, so why not make them.

 

[Crispycritters]

I retired at 60, but am currently living on a pretty low fixed income from a military pension. I repaid my mortgage, cleared my debts and binned my credit cards before retiring. I can get by OK but applying for credit isn't a realistic option.

I've got into the habit of watching the pennies over the last 4 years, but as essentially everything but supermarkets have been closed and driving anywhere has been verboten I've pretty much lived like a hermit.

My bank balance is pretty healthy at the moment because my habitual one or two of nights a week 'out' and Sunday afternoon at the pub haven't happened since lockdowns started.

I sat down and figured out the things I need to prioritize - I didn't pay any National insurance for the last 2 years that I need to sort out. My fridge freezer has recently become incontinent and my washing machine is starting to sound like a cement mixer - both are ancient and not worth attempting to repair. My central heating boiler is ancient, my hot water isn't as hot as it used to be and my 14 year old bingo chariot car has a 50/50 change of being worth putting through an MOT.

I'm in the process of paying my National Insurance and I'm currently shopping around for a washer and fridge. I bought a TV today as my old one was past its best but I had to walk past all the new high tech stuff and come home with a £220 1080p old stock special. I'll probably end up with similar budget washer and fridge. The car and boiler will have to wait - I can afford to replace one or the other at the moment but I've got 6 months to figure it out.

The lockdown was probably beneficial to me as I've managed to save enough to stay skint.

 

[scrumpox]

The lockdown was probably beneficial to me as I've managed to save enough to stay skint.

it doesn't sound like you've retired into an easy life. You live alone Crispy?

 

[Miss Pepper]

A mortgage is a secured loan so, IMHO, it is definitely a debt - it's just a very specific type of debt with a nice, cosy home to call your own at the end.

It's the one debt absolutely worth having. Not many people can simply afford to buy a house outright.

I think it's a debt too as it's money owed, but for some reason part of the population doesn't, nor do they see loans and credit cards as debt because payments are manageable each month.

 

[Mawsley]

How the hell would I be able to buy all these mods without credit?

 

[scrumpox]

I think it's a debt too as it's money owed, but for some reason part of the population doesn't, nor do they see loans and credit cards as debt because payments are manageable each month.

With all due respect, you're just talking shit, saying what you think other people semantically consider debt to be or how they choose to manage it. Affordability is a completely different thing. Debt is debt.

 

[oldhippydude]

With all due respect, you're just talking shit, saying what you think other people semantically consider debt to be or how they choose to manage it. Affordability is a completely different thing. Debt is debt.

True. Debt is debt.

However not all debts are equal.

Debt taken on to obtain an asset that holds value or increases in value is qualitatively different to debt taken on for a depreciating asset or items that are consumed, so soon have no value beyond memories.

Even if people are semantically wrong. we know what they mean .