Living within your means Watch

donuticus
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#1
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#1
Why is it people are now incapable of living within their financial means ? Every time I turn the telly on some fatuous idiot is on telly saying how its the banks and credit card companies fault that they can no longer pay back all their commitments.You earn £12,000 a year and you have debts approaching £45,000. Im not talking about student loans and mortgages, Im talking about unsecured borrowings.

I do like laughing at the people on Spendaholics though !!!!!

Are people really this naive and stupid or is just that the TV likes sob stories ?
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dh00001
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i like turtles.


its because you see something and want it. financial implications arent considered until after
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MattG
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also with montly payments etc and advertising, things seem affordable and managable when they really aren't. I wouldn't say its false advertising, but its close in many situations.

I really don't know why they don't teach financial management at school is PSE/social studies. At least the basics of credit, bank accounts, interest etc, covering tax as well perhaps, people need to know this stuff and not everyone can relie on their parents to inform them
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randomgirl
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I guess the only kind of people on those shows are the ones with financial problems..therefore it seems like more people have problems?
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Vesta
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Some people really just don't think when they see an advert on the TV.
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Zygroth
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It's too easy to borrow money to be honest. As I'm typing this now, I see an advert for CapitalOne which "guarantees" an online response in 1 minute. That's how easy it is to get money, and I guess it must be tempting to just borrow money and enjoy yourself, without a thought for the consequences :P

And yeah, we're not exactly being taught about money management are we? I only learnt some stuff at a course for my Silver DoE thing, though I do remember reading somewhere about changes to the curriculum so that we get taught that kind of stuff. Bit late...
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space_aura
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our school's financial advice was taught by bailiffs who said,
"we don't want your stuff, we want your money"!!
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louisedotcom
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My mum has friends like this who basically live off of credit cards and spend spend spend like they have millions in the bank.
One of my mums friends also ended up having to declare being bankrupt as she just couldnt control herself when spending.
She now has to pay back something ridiculous like 63p a week or something.

I dont understand it myself, its completely irresponsible and Id never have a credit card because in my eyes its just another temptation.
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Wangers
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The first bit of advice when I turned 18 was not to get a credit card.
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_jackofdiamonds
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I don't understand why anyone would have a credit card. It's just plain greed and impulsiveness. People are living off debt, beyond their means, and just get more into debt...but they don't seem to realise the party can't possibly last forever.
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la fille danse
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(Original post by _jackofdiamonds)
I don't understand why anyone would have a credit card. It's just plain greed and impulsiveness. People are living off debt, beyond their means, and just get more into debt...but they don't seem to realise the party can't possibly last forever.
Huh? What's greedy and impulsive about having a credit card? :confused:
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_jackofdiamonds
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(Original post by more adventurous)
Huh? What's greedy and impulsive about having a credit card? :confused:
Spending money you don't have, paying over the odds for something just for the sake of having it now.
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la fille danse
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Um, but what if you DO have the money?

I can't imagine what you would find wrong with having a credit card and paying it off on time every month. What could possibly be greedy or impulsive about that?
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Skeve
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People should try doing what I do and actually get the money before you buy something. Makes buying stuff a lot more exciting.
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_jackofdiamonds
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(Original post by more adventurous)
Um, but what if you DO have the money?
Then you wouldn't need a credit card...
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la fille danse
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Lol... you think everyone who has a credit card doesn't have the money to pay it off?!

Let's look at some of the reasons people use credit cards...

-Purchase protection
-To build credit history so you can take out loans and mortgages later in life
-If your electricity bill is due on the 5th of the month and you get paid on the 10th
-If your bank only gives you a Solo debit card, and you want to be able to buy things at places that don't accept Solo
-To get rewards, such as miles and cashback. My parents pay for my tuition (20,000 dollars a year) on their credit card, and they get double miles for it - so they get 40,000 miles, enough for a return flight.

Credit cards are only bad if you don't have an iota of self control. If you do have an iota of self control, there are only benefits.
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guitargirl03
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(Original post by _jackofdiamonds)
Then you wouldn't need a credit card...
Many places offer incentives if you use a credit card, i.e. air miles, etc.

I don't have a credit card or ever plan on having one as a credit card led to my mum getting into serious debt, however, I can see why many people will use a credit card, as many advertisements and television programmes glamourise the use of credit cards. They also get people out of a muddle if they can't pay something off due to unforseen circumstances.

I think we're far too quick to judge people who use credit cards as many do have the money to pay them off every month.
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_jackofdiamonds
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Fair enough if you have enough self control, but plenty of people don't otherwise the credit card companies would be out of business.
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la fille danse
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#19
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I don't see what people find so difficult about only spending money that they can afford to lose. It's a character flaw, not a flaw with credit cards in general.
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Thud
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It's just simple greed. People want what they can't afford all these adverts make it seem like these things are within reach.

Notice they're usually on during the day, not so much in the evening - same with the compensation adverts.
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