> “I have personal loans and credit cards totalling £25,000 so any increase will be hugely noticeable.
>At present I repay around £1,800 a month but I have worked out that I will conservatively need to pay another £250 a month to keep up with the debts.
I don’t think his problem is the interest rate to be honest
Loan prices and borrowing has been going up very fast, long before inflationary pressures. It feels like a huge trap forcing people into debt to cover daily living with the chance to back them into a corner later and force realisation of any assets they have. Really tough times ahead for most, but not for the rich or corps.
I’m old enough to remember interest rates going through the roof in the 80’s, it was a really rough time for home owners, I doubt things will ever get that bad, but that scarred me for life, and as such it has really had an impact on how I view borrowing.
Struggling with some of the numbers in that article. The predicted rate increase this month is 0.5%, which would add about £10 a month to a £25k debt, not £250. The couple in the article said this might knock £200k off their affordable mortgage. I get that a really big increase like what was seen in the 80s would have this effect, but not a 0.5% increase…
So many articles like this recently on BBC news, what is this nonsense? Just smacks of privileged people moaning that they’ll be less privileged when other people will have to chose between eating and heating their homes this winter. BBC news is slowly but surely becoming The Daily Mail.
Oh look, another article about someone experiencing negative consequences due to the current economic crisis, but in a way that most ordinary people will find enraging, thus diverting anger away from the people who aren’t doing anything to alleviate the problem.
“Bank of England cancels rate rise – we can’t be inconveniencing people with 30k of credit card debt, just suck up that inflation everyone, says bank head”
Worlds smallest violin playing for this guy. If you run up huge debts you can barely afford then you’re obviously going to struggle.
Patrick Reid is an FX trader. It is his job to have the market move in a direction that suits him.
He really is (or was) quite a wealthy man, and I wouldn’t trust what he was saying here.
Source: The Adamis Principle
Got my house in the 80s at one point we were paying 15.7% interest on our mortgage which we also had an endowment on. When the rates came down . Endowment started to fall short and they kept badgering me to up my payment. Instead I paid extra off the mortgage at the end of each year. Switched to repayment with capped interest as soon as I could afford it
Never get credit if the interest is flexible
I know this is difficult for a mortgage but for other lending fixed for the duration is the only way
Did you know this could happen when you took on the debt? Buyer beware?
Have I got this wrong or do low interest rates only help those with loans and mortgages and hinder everyone else?
Should interest not be around the same rate as inflation? Otherwise everyone with any money in the bank is losing money. Does it not also encourage no one to save?
Interest rates drop through the floor in 2008 and have never gone
back up again. They are not where they should be right?
Every one of those “members of the public” are business owners. With one lady saying she will have to settle for a house £200k cheaper than they had planned for. My heart fucking bleeds. Tell me stories of the couple both working for the NHS or a tradesman providing for his pregnant wife. Things are beyond fucked….but lets not forget the struggling middle class while thousands of people will die this winter choosing between food and heating.
His income can’t be that good if he can’t pay a bit of his debt off. £1800 a month seems a lot to me on an average salary – it’s way more than my salary. Maybe cut down on the avocados and coffees sir.
So out the 5 people interviewed:
3 own their own business, 1 of whom this helps buy a place in london, 1 of whom this slows their expansion as a successful business, 1 of whom needs to cut spending as they have many loans.
1 is a stay at home wife who says her and husband own their home, but moving to somewhere (presumable larger, in a better area, etc) isn’t worth it if it’s not 200k more than what they can (currently) afford
1 is a manager for morrisons for whom this will increase his mortgage repayment rate, and may have to reconsider his new hybrid he bought for his new higher paying (but longer drive) job
​
the middle class have fallen folks… dark days indeed
You people do realize the only way to reduce inflation is to increase interest rates right ? There is no other way to combat inflation
They deserve it… Adults need to take responsibility for their own life.
This is the worst kind of tabloid clickbait from the BBC, they went out of their way to find a ‘member of the public’ with gigantic personal debts and then use it to make an eye-catching headline to complain about the interest rate rise. I wish the BBC could just report the news rather than keep shit-stirring but I guess those days are long gone.
Adults make risk choices and then have to deal with the consequences of their choices. Sometimes they benefit and sometimes they lose. As long as they behave like adults hold themselves to account then there’s no issue. Unfortunately not many people do that. They want it all when times are good, but they only want to blame others and pass on their issues when times are bad.
Grow up people.
Let’s get a tracker
Something doesn’t add up, 0.5% of his debt is only £125
This is literally the whole point of the rate rise. If the BoE makes borrowing more expensive, then fewer people will borrow money, which will reduce inflationary pressures. At least that is the theory.
Don’t get loans then, simple. If you can’t afford it in one payment (other than a mortgage) then don’t buy it.
We’re living in a generation where everyone wants the latest fad tech or gadget to ‘look cool’ and living beyond their means, paying £400 for the latest model 71 plate poverty spec BMW just to outdo your neighbour who recently got a new car.
Can’t understand how people can happily live using up a grand of disposable income a month paying off loans, credit cards, subscriptions they never use, finance etc etc. Then once something is finally paid off, repeat the cycle with the latest ‘facelift’ version car and iPhone 13.6348X max plus
I think he is not the smartest cookie, a Barclay card comes with APR: of 23.9% so my guess is his Credit card is somewhere on this level so the first step would be to change to a normal low-interest rate loan and cut his Credit card in half …
Leaving out the part of the quote where he claims he can afford it and it’s more of a minor annoyance.
Now is the time to move your debt onto a 0% balance transfer card. I currently have a Virgin Money 31 month 0% balance transfer card with 10K on it. I used to owe over 20K but I have been doing the 0% ballet and moving the debt around when the 0% period ends. This way ALL my payments come off the debt and it gets paid off quicker. I try to pay more than the minimum on a regular direct debit. When I’m left with spare money at the end of the month I can add it to the card, when times are tight I can pay the minimum until I can afford to pay more.
Money is cheap at the moment – said the bank. We can offer loads of money to incentivise retail, promoting the growth of business that may have stalled during the covid pandemic.
Also the bank – now you are borrowing lots of money we need you to pay back a higher interest, moneys expensive you know
“I will simply have to tighten my belt and be extra cautious in my spending, which means all of those non-essential items will be cut from my budget.”
Mate. You’ve got 25k in credit card debt – you should’ve done this years ago.
28 comments
> “I have personal loans and credit cards totalling £25,000 so any increase will be hugely noticeable.
>At present I repay around £1,800 a month but I have worked out that I will conservatively need to pay another £250 a month to keep up with the debts.
I don’t think his problem is the interest rate to be honest
Loan prices and borrowing has been going up very fast, long before inflationary pressures. It feels like a huge trap forcing people into debt to cover daily living with the chance to back them into a corner later and force realisation of any assets they have. Really tough times ahead for most, but not for the rich or corps.
I’m old enough to remember interest rates going through the roof in the 80’s, it was a really rough time for home owners, I doubt things will ever get that bad, but that scarred me for life, and as such it has really had an impact on how I view borrowing.
Struggling with some of the numbers in that article. The predicted rate increase this month is 0.5%, which would add about £10 a month to a £25k debt, not £250. The couple in the article said this might knock £200k off their affordable mortgage. I get that a really big increase like what was seen in the 80s would have this effect, but not a 0.5% increase…
So many articles like this recently on BBC news, what is this nonsense? Just smacks of privileged people moaning that they’ll be less privileged when other people will have to chose between eating and heating their homes this winter. BBC news is slowly but surely becoming The Daily Mail.
Oh look, another article about someone experiencing negative consequences due to the current economic crisis, but in a way that most ordinary people will find enraging, thus diverting anger away from the people who aren’t doing anything to alleviate the problem.
“Bank of England cancels rate rise – we can’t be inconveniencing people with 30k of credit card debt, just suck up that inflation everyone, says bank head”
Worlds smallest violin playing for this guy. If you run up huge debts you can barely afford then you’re obviously going to struggle.
Patrick Reid is an FX trader. It is his job to have the market move in a direction that suits him.
He really is (or was) quite a wealthy man, and I wouldn’t trust what he was saying here.
Source: The Adamis Principle
Got my house in the 80s at one point we were paying 15.7% interest on our mortgage which we also had an endowment on. When the rates came down . Endowment started to fall short and they kept badgering me to up my payment. Instead I paid extra off the mortgage at the end of each year. Switched to repayment with capped interest as soon as I could afford it
Never get credit if the interest is flexible
I know this is difficult for a mortgage but for other lending fixed for the duration is the only way
Did you know this could happen when you took on the debt? Buyer beware?
Have I got this wrong or do low interest rates only help those with loans and mortgages and hinder everyone else?
Should interest not be around the same rate as inflation? Otherwise everyone with any money in the bank is losing money. Does it not also encourage no one to save?
Interest rates drop through the floor in 2008 and have never gone
back up again. They are not where they should be right?
Every one of those “members of the public” are business owners. With one lady saying she will have to settle for a house £200k cheaper than they had planned for. My heart fucking bleeds. Tell me stories of the couple both working for the NHS or a tradesman providing for his pregnant wife. Things are beyond fucked….but lets not forget the struggling middle class while thousands of people will die this winter choosing between food and heating.
His income can’t be that good if he can’t pay a bit of his debt off. £1800 a month seems a lot to me on an average salary – it’s way more than my salary. Maybe cut down on the avocados and coffees sir.
So out the 5 people interviewed:
3 own their own business, 1 of whom this helps buy a place in london, 1 of whom this slows their expansion as a successful business, 1 of whom needs to cut spending as they have many loans.
1 is a stay at home wife who says her and husband own their home, but moving to somewhere (presumable larger, in a better area, etc) isn’t worth it if it’s not 200k more than what they can (currently) afford
1 is a manager for morrisons for whom this will increase his mortgage repayment rate, and may have to reconsider his new hybrid he bought for his new higher paying (but longer drive) job
​
the middle class have fallen folks… dark days indeed
You people do realize the only way to reduce inflation is to increase interest rates right ? There is no other way to combat inflation
They deserve it… Adults need to take responsibility for their own life.
This is the worst kind of tabloid clickbait from the BBC, they went out of their way to find a ‘member of the public’ with gigantic personal debts and then use it to make an eye-catching headline to complain about the interest rate rise. I wish the BBC could just report the news rather than keep shit-stirring but I guess those days are long gone.
Adults make risk choices and then have to deal with the consequences of their choices. Sometimes they benefit and sometimes they lose. As long as they behave like adults hold themselves to account then there’s no issue. Unfortunately not many people do that. They want it all when times are good, but they only want to blame others and pass on their issues when times are bad.
Grow up people.
Let’s get a tracker
Something doesn’t add up, 0.5% of his debt is only £125
This is literally the whole point of the rate rise. If the BoE makes borrowing more expensive, then fewer people will borrow money, which will reduce inflationary pressures. At least that is the theory.
Don’t get loans then, simple. If you can’t afford it in one payment (other than a mortgage) then don’t buy it.
We’re living in a generation where everyone wants the latest fad tech or gadget to ‘look cool’ and living beyond their means, paying £400 for the latest model 71 plate poverty spec BMW just to outdo your neighbour who recently got a new car.
Can’t understand how people can happily live using up a grand of disposable income a month paying off loans, credit cards, subscriptions they never use, finance etc etc. Then once something is finally paid off, repeat the cycle with the latest ‘facelift’ version car and iPhone 13.6348X max plus
I think he is not the smartest cookie, a Barclay card comes with APR: of 23.9% so my guess is his Credit card is somewhere on this level so the first step would be to change to a normal low-interest rate loan and cut his Credit card in half …
Leaving out the part of the quote where he claims he can afford it and it’s more of a minor annoyance.
Now is the time to move your debt onto a 0% balance transfer card. I currently have a Virgin Money 31 month 0% balance transfer card with 10K on it. I used to owe over 20K but I have been doing the 0% ballet and moving the debt around when the 0% period ends. This way ALL my payments come off the debt and it gets paid off quicker. I try to pay more than the minimum on a regular direct debit. When I’m left with spare money at the end of the month I can add it to the card, when times are tight I can pay the minimum until I can afford to pay more.
Money is cheap at the moment – said the bank. We can offer loads of money to incentivise retail, promoting the growth of business that may have stalled during the covid pandemic.
Also the bank – now you are borrowing lots of money we need you to pay back a higher interest, moneys expensive you know
“I will simply have to tighten my belt and be extra cautious in my spending, which means all of those non-essential items will be cut from my budget.”
Mate. You’ve got 25k in credit card debt – you should’ve done this years ago.