One in three families

[Chelle-82 10]

You're still missing my point. I'm not saying that buying a house is in anyway bad, or that mortgages are bad. Clearly without them most people would never own a house.

 

My point is that the general advice - "don't buy something if you have to use credit" is clearly broken, because we have to break that advice for the biggest purchase most of us will ever make.

 

Of course is it broken but for reasons of financial advantage (unless something drastically goes wrong)

 

Taking finance out to buy something that is not really needed or doesnt have any long term financial benefits to it is IMO unhelpful..

 

It is good practice to start from a young age to save and to also know the worth of what something costs, which unfortunately is another major problem currently going on in my house at the moment with my daughter!! My fault obviously but she's starting to learn that things have to be earned and valued and looked after and not easily replaced...

[Danny_Boy 10]

Of course is it broken but for reasons of financial advantage (unless something drastically goes wrong)

 

Taking finance out to buy something that is not really needed or doesnt have any long term financial benefits to it is IMO unhelpful..

 

It is good practice to start from a young age to save and to also know the worth of what something costs, which unfortunately is another major problem currently going on in my house at the moment with my daughter!! My fault obviously but she's starting to learn that things have to be earned and valued and looked after and not easily replaced...

 

There are many grey areas though, I wanted a new 4k TV, it was on offer for £1000 which was a bargain at the time, I had the money but it was on 12 month interest free credit. Why fork out a grand when I can pay £83.33 a month and still pay the same in the long run?

 

Same with our Sofa from SCS £2k upfront or £42 a month interest free over 4 years. No brainer if you ask me.

[Cyclone 10]

Well that's become entirely different advice then.

 

"Only use finance when you judge it to provide you with some benefit."

Quite different to

"Never buy anything unless you can afford to pay for it yourself".

 

In the days of 0% credit offers if I was buying something (computers often) and a 0% offer was available, I'd take it, even though I didn't need it. The money in the bank was actually earning some interest in those days, so it just made sense.

 

I completely agree with Danny, the lazyboy sofa's we have (nearly 10 years old now) came from Barkers on 0% finance over 2 years. We could have paid for them upfront, but why would you?

[Chelle-82 10]

There are many grey areas though, I wanted a new 4k TV, it was on offer for £1000 which was a bargain at the time, I had the money but it was on 12 month interest free credit. Why fork out a grand when I can pay £83.33 a month and still pay the same in the long run?

 

Same with our Sofa from SCS £2k upfront or £42 a month interest free over 4 years. No brainer if you ask me.

 

Well yeah of course... BARGAIN!!!

 

But if you lose your job tomorrow do you have enough money in your savings to pay your rent/mortgage, £83.33 tv bill, £42 settee bill, Gas, Electricity, Council Tax, Water Rates & TV License (you need one for that brand new TV you just bought)

 

Most people dont....

 

---------- Post added 09-08-2016 at 14:17 ----------

 

Well that's become entirely different advice then.

 

"Only use finance when you judge it to provide you with some benefit."

Quite different to

"Never buy anything unless you can afford to pay for it yourself".

 

In the days of 0% credit offers if I was buying something (computers often) and a 0% offer was available, I'd take it, even though I didn't need it. The money in the bank was actually earning some interest in those days, so it just made sense.

 

I completely agree with Danny, the lazyboy sofa's we have (nearly 10 years old now) came from Barkers on 0% finance over 2 years. We could have paid for them upfront, but why would you?

 

I'll pass on your comments to my parents and hopefully they will see the error of their ways

 

And maybe you do have enough money in your bank to buy a brand new sette but choose not to, good for you! but i am talking about people who don't have savings and don't NEED that new settee but because they're keeping up with the jones' they credit it..

Edited August 9, 2016 by Chelle-82

[Cyclone 10]

I agree that people shouldn't buy a new sofa just because they fancy it. Not unless they actually have enough to cover it and to keep themselves afloat for some time.

 

I just don't think that blanket advice about "never use credit" actually communicates that sentiment.

 

Perhaps it's a generational thing. My grandparents/parents used to say much the same thing as yours (they saw debt as being a sign of failure, despite mortgages). Personally I see credit as a tool to use as makes sense to me. And the younger generation seem to think it's money that just grows on tree's.

[master jedi 15]

How anyone finds this hard to believe is unbelievable itself with all these zero hour contracts around and a living wage not really good enough to live on as well.There is no way anyone in this situation is going to have any money left to put aside for a rainy day.

[Chelle-82 10]

I agree that people shouldn't buy a new sofa just because they fancy it. Not unless they actually have enough to cover it and to keep themselves afloat for some time.

 

I just don't think that blanket advice about "never use credit" actually communicates that sentiment.

 

Perhaps it's a generational thing. My grandparents/parents used to say much the same thing as yours (they saw debt as being a sign of failure, despite mortgages). Personally I see credit as a tool to use as makes sense to me. And the younger generation seem to think it's money that just grows on tree's.

 

It's about getting the balance right..

 

Yes you can use credit to your advantage, 0% interest credit is great as long as you have the means to pay it off in the agreed time limit (though, more often than not the 0% interest item you are purchasing is higher in value anyway - clothes catalogues are a prime example of that)

 

I do believe it is a generation thing, my child truly does believe money grows on trees!

 

Last thursday night she came to me crying because she had smashed her iphone screen, this is the third iphone she has been given in the last year or so (all second hand mind you!) and each time she has smashed the screen even though she has been told repeatedly to get a cover for it!!

 

The past two times i have felt sorry for her and replaced the phone but not this time.. She's only had this one 3 WEEKS!!!! If i keep on replacing them she's never going to realise what it means to look after something.. even second hand iphones are not cheap! it's her 13th birthday next month and i've told her she can save up any money she gets and spend her OWN money to fix it or buy another one, she might then start looking after it... She looked at me as though i'd just pulled a mooney infront of all her classmates!

[Hogg 10]

Very relieved to say that my mortgage is paid, but I come from the lucky generation of baby boomers where University was free, work was always available and the housing ladder easy to climb. My only kid is in a very different position and it seems likely that I will be helping to finance them when they are ready to buy.

[Danny_Boy 10]

Well yeah of course... BARGAIN!!!

 

But if you lose your job tomorrow do you have enough money in your savings to pay your rent/mortgage, £83.33 tv bill, £42 settee bill, Gas, Electricity, Council Tax, Water Rates & TV License (you need one for that brand new TV you just bought)

 

Most people dont......

 

I see what you're saying but like I said I had the cash, taking it over 12 months enabled me to keep that money in my savings for a rainy day and pay for the telly monthly out of my wages. I of course did not need a 4k telly but I wanted one, I rarely go out anymore now I have my girls full time so I spend my money on other things.

 

I am in the fortunate position of being self employed so I am very unlikely to lose my job and I am insured against accident and sickness.

 

I think the point is that stating point blank that you should not use credit is not always good advice, like Cyclone I see credit as a tool. Used correctly it's the same as saving up to buy something but in reverse and enables you to get the item quicker.

 

I do admit though that it is very dangerous if something happens to you out of your control or if it is used incorrectly.

 

I have to stick up for credit I am a mortgage advisor

Edited August 9, 2016 by Danny_Boy

[Love2print 10]

This threads highlights that we all have different attitudes to what is acceptable and affordable debt. What is important is that you know how to decide for youself. Just because you can borrow an amount doesn't mean you should. Banks are there to make money and giving credit makes them money.

 

Thats why I think financial education should be compulsary in schools. There are people who really don't understand credit.

[Danny_Boy 10]

This threads highlights that we all have different attitudes to what is acceptable and affordable debt. What is important is that you know how to decide for youself. Just because you can borrow an amount doesn't mean you should. Banks are there to make money and giving credit makes them money.

 

Thats why I think financial education should be compulsary in schools. There are people who really don't understand credit.

 

100%, mortgages, savings, bank accounts and credit facilities should be tought to all children in comprehensive school. I am beyond shocked that it is not part of the curriculum. Could it be that banks make a lot of money from people who are loose and fast with their money

[Chelle-82 10]

100%, mortgages, savings, bank accounts and credit facilities should be tought to all children in comprehensive school. I am beyond shocked that it is not part of the curriculum. Could it be that banks make a lot of money from people who are loose and fast with their money

 

Why, those are their favourite customers!!

 

---------- Post added 09-08-2016 at 15:05 ----------

 

I see what you're saying but like I said I had the cash, taking it over 12 months enabled me to keep that money in my savings for a rainy day and pay for the telly monthly out of my wages. I of course did not need a 4k telly but I wanted one, I rarely go out anymore now I have my girls full time so I spend my money on other things.

 

I am in the fortunate position of being self employed so I am very unlikely to lose my job and I am insured against accident and sickness.

 

I think the point is that stating point blank that you should not use credit is not always good advice, like Cyclone I see credit as a tool. Used correctly it's the same as saving up to buy something but in reverse and enables you to get the item quicker.

 

I do admit though that it is very dangerous if something happens to you out of your control or if it is used incorrectly.

 

I have to stick up for credit I am a mortgage advisor

 

My friend is currently looking for an idependant mortgage advisor, needs a transfer of title, bad credit advice etc..