Is Everyone Living On Credit?

Question

Me and the wife think we are doing something wrong somewhere as we work hard but have sweet FA to show for it, We are low paid workers we can't afford a holiday abroad as much as we'd like to, yet a prime example is my wifes sister unemployed and going on a nice 2 wk holiday to Spain.

I have work colleagues and friends who think nothing of going out and buying plasma TV's XBox 360's, you name it.

Then theres a mortgage we can't get one, we don't earn enough so I am really surprised how a work colleague on same pay can build a house that would sell at £250-£300K.

It seems we are doing something wrong as we have nothing but what we do have is ours, Is everyone living on credit or what?? Even silly things like a new couch/sofa we're on my parents hand me down, friends etc even unemployed ones have the best of everything.

Answer 1

Ive never borrowed or a penny in my life. Il buy a tv or a computer on a plan where you pay a liitle every month as long as they dont charge me intrest

Answer 2

You know what they say..."Behind every great wealth there is a great crime". heheh...just kidding



I see were talking about pounds here...must be in England I assume? Funny thing is...I been down there many times and thought the same thing there. Life is slower and things are a little easier than out here.



I work a 50-70 hour week. Sometimes more as Im forced to be out of town for work. Its hard but the money is well worth it.

And sometimes when I sit around and think about the amount of money I make...I should have had greater investments than I do now and I should have had more money in the bank but the truth is that I dont cause I like living big each day. I spoil myself and therefore I dont have enough to show for as hard as I work. But thats my choice.



Every little thing adds up. If your spending a few pounds or dollars here and there and think it doesnt matter...sure it does. I dont know your life style but you do that 10 times a month... I bet it will end up to be a good chunk of money.



Maybe you dont economise, maybe you spend money on things that are not necessary. Maybe your rent is more than it should be compared to your pay. Maybe your car is more expensive than it should be compared to your pay. There are many possibilities. The key here is to figure out...WHERE IS ALL MY MONEY GOING? Next step is to think about what you can do to turn it around.



Well sure the whole world is living off of credit cards but thats not forever. Eventually that runs out and all of a sudden your working twice as hard with nothing to show for it at all. Ya know almost 80% of the USA is in bankruptcy or is headed that way.



Open up a savings account and put aside some money each month...by the end of the year you will be able to go on that trip or buy that TV. Each year do something nice. Live well because life is not all about working and passing the day.



Good Luck.

Answer 3

I think that you're right, and most people are living on credit. Most people in the UK have huge debts, I know many people on low end wages who keep spending. The problem comes for these people when they get older and stop earning, and not only will they have a low pension, but will be saddled with massive debts to repay.



I think a lot of people are taking more credit because the value of their house gives them false confidence, as the values have shot up. However, owning a house worth £200K does not mean you have £200K, and you can't sell it to clear your debts as you need to live somewhere, and unless you go to a house drastically smaller you won't get much change!



I got myself into the credit trap when I was 18, mostly out of neccessity at the time. Its taken me years to clear up, and its so nice not to have any debts! It taught me a harsh lesson, and now I won't spend more than I have! I rent and prefer not to have a mortgage with all the stress it causes as interest rates rise.

Answer 4

Well I dont know how unemployed folks have the best of everything.



It is not worth borrowing for stuff you dont need, eg Im not convinced plasma tvs have a better picture than old style TVs, who needs the newest style mobile phone?



A whole load of these items are just flashy bling.

Answer 5

Dont go into debt. My wife and I chose consumer debt for a couple of years and it took us about 5 years to get out of it. Be happy with what you actually own. Try not to compare yourself to others, that is a dead end street. Good luck and keep the credit cards at bay!

Answer 6

Be a saver not a borrower.



£1.3 trillion of debt including £250billion on credit cards. 74 million credit cards among 40 million adults.



We are all going to hell in a handcart if interest rates continue to rise.

Answer 7

Count your blessings and live within your means.



That would be the best way to live. I know it's hard to be contented with what we have but you'll be much happier that way.



Look on the brighter side, at least you have a happy family to call your own.

Answer 8

My neighbour has brand new cars every 2 years and I have had my old S Reg Passat estate for 9 years. He's always saying 'time you updated that car of yours' but I shut him up last time when I said ' at least my car belongs to me, not the finance company '. hehe.

Answer 9

I agree with what you are saying , but those who live on credit have to pay for it in the end.



I'm like you , but at least what I have got is mine and paid for



I often say to my freinds with there cars etc. on credit that they don't own them , these items belong to there banks etc. they don't like it , but it's true

Answer 10

your not on your own there david believe me.Got the mortgage but only because we did it ten years ago if we had to start now we wouldn't have a chance you have my sympathy babe. be happy with what you have I'm sure its more than some people have. x

Answer 11

This whole sorry country lives on credit. Society would collapse without it..........get it spent and live for today is the motto. Values what values???

Answer 12

easy come society.



people dont understand the meaning of the phrase "living within your means"

Answer 13

No