Bingalau 19:02 09 Jan 2007

I've just been watching an advert on TV. I am shocked that it is allowed. A young lady is borrowing £25.000 by telephone. All sweetness and light. But visible in the background is the text saying something like "Only £238.?? per month for 180 months. I hope the people wishing to borrow money have managed to see this text, (it's not on screen for long, and doesn't stand out at all). But by my arithmetic the total amount repayable exceeds £43,000. No wonder a lot of people in this country are crippled by debt. ..Bingalau..

  octal 19:17 09 Jan 2007

I haven't put that in the spreadsheet but £43,000 sounds about right for 29% compound interest

  rezeeg 19:18 09 Jan 2007

Depends what you're doing with the money Bingalau. Over 15 years with inflation erosion it's not too bad, but if you're blowing it on a round the world jolly, new car etc. then it's a very expensive way of purchasing.

  Bingalau 19:23 09 Jan 2007

I think it's diabolical. Glad I was taught if you can't pay for something without using "tick" then don't buy it. Mind you I have since bought things like a car, but only with a no-interest type purchase over three years type of loan. I even felt guilty about that. Must be an age related thing I think. ..Bingalau..

  rezeeg 19:34 09 Jan 2007

Bingalau if you own your own home, think of what you borrowed in the first instance and the total you've repaid.

As I said it depends on what you're doing with the money, but I agree if it's 'tick' then don't buy.

  lisa02 19:44 09 Jan 2007

I was just reading about the amount of debt and bankruptcies expected this month due to folk over spending at Xmas. I expect some will dive on that £25 grand.

  Fruit Bat /\0/\ 19:46 09 Jan 2007

The eighties produced a "WANT IT NOW" generation.

More people are trying to live a life style they cannot afford and thier finnaces are balanced on a knife edge.

Low interest rates encourage this. Be glad that morgage rates are not 15% as in the late seventies, I struggled to pay my gas bill then.

Hmm gas bills thngs haven't really changed, have they?

  lisa02 19:47 09 Jan 2007

I was also reading that this Christmas period beat fears of a slow down and spending increased on the High Street. So much that some of the big fish are quoting upto 4 or 5% on like for like sales on the same period last year. "Their best Christmas yet"

  Bingalau 19:47 09 Jan 2007

rezeeg. Yes I do own my own home, I worked hard in the services and saved money (Scrooge had nothing on me) helped by my wife. On leaving the services I commuted my pension and found after about three years as a hard working civilian, that I had enough to buy our first house. I suppose I have been lucky in that I have always been a non smoker and didn't do an awful lot of drinking. So we managed quite nicely. But I am glad that someone agrees that it is an expensive way to borrow money. ..Bingalau..

  rodriguez 00:26 10 Jan 2007

£42,840, So that loan would cost £17,840. Loan companies aren't there to help you, they're there to make money because they're a business. The adverts that really wind me up are the ones that claim to have you "pay back less than you actually owe" and to "rid you of debt and leave you with a bit left over". No chance. I don't see "registered charity number xxxxxx" on the bottom of the screen in smallprint, I see "xx% APR". Which is why I stay out of debt by only buying things I know I can afford. If I haven't got the money for it, I don't get it.

  €dstowe 06:48 10 Jan 2007

Slightly different subject but, in Tesco the other day I saw a woman have three gold credit cards and her debit card refused.

The credit limit on gold cards is quite substantial so her actual debt to at least three and overstepped the overdraft at the bank is not a way to conduct one's life.

BTW, I do know the person slightly - she is titled and the wife of a hereditary peer.

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