Culture. Banks, Money & The Credit Crunch.

Change bank, Alliance & Leicester are doing a good deal at the mo'.

Just signed up myself

On a side note, I've started to have personalised letters for credit cards come to my house. I have tipped that 3 years in the country, is that why I'm getting all the letters?

I don't own a credit card either.

Seems that way doesn't it. And so much about the economy boils down to confidence.

Admittedly "the crunch" is yet to affect me in any material way, but even I'm starting to feel this vague sense of foreboding about what lies ahead. Not just credit-wise but in terms of international affairs, oil etc.

A real shit time to be Chancellor of the Exchequer.

I'm happy now 'cos we've still got a year to go on our fixed rate mortgage, but I'll be shitting it in 9 months when we start to think about moving the mortgage to get a better rate as my orther half is currently temping after being made redundant (although she's just been offered a permanent role that she's considering) and I've got an "adverse credit history"...

Anybody feeling the effects of the credit crunch yet?

My father-in-law owns a big accountancy firm and he's saying it's the worst situation he's ever seen. Clients are coming to him in the hope that he can figure out a way for them to survive, but he's having to makes scores of them bankrupt. He says it's much worse than the last recession simply because this time around, people have higher levels of debt, and simply can't afford to ride out the bad times as they might have been able to in earlier years when they didn't have such high debts to service. He's telling me tales of burly builders breaking down in tears, and how he's having to tell people that they need to sack staff they've employed for 25 years, etc. Plus these people then can't afford to pay their accountancy fees, which effects his company.

It's strange that for some people it seems to be going by unnoticed, but other people seem to be getting hit really hard.

A friend we know that works for a massive international company, who have just posted massive profits. You would assume that meant jobs would be safe, but instead they've sacked everyone and moved all the jobs abroad in anticipation of the troubles still to come.

It's strange that for some people it seems to be going by unnoticed, but other people seem to be getting hit really hard.

Is that because it's more immediate for some industries and less for others. i.e we'll get our come uppance soon! :)
I would like to think that there won't be a cutback on clients requiring new media/web/print, but as clients become more focused on other areas of their business, surely their budgets will be slashed.

On a more personal note, we just changed our mortgage and finding we're paying an extra 120 quid a month. Joy!

I've also heard mixed thoughts on the housing market too. A few of my friends who are looking to buy, particular first time buyers are finding it incredible that sellers are willing to drop their house price by £30-50,000.

I think if you have a half decent deposit, you could probably get a decent bargain as long as you're willing to stay in the house and see out the housing market gloom.

http://hbswk.hbs.edu/item/5878.html

Useful for our sector.

To be fair, I'm not feeling any effects at all, although I don't really have any debt. It's hard not to be a tad smug though when two or three years ago I was being mocked, probably on this forum too, for renting rather than buying ("dead money" and all that shit). I know a few people now who are seriously struggling to keep up with their mortgage repayments and are paying out most of their wage on the house and are left with fuck all money to do anything else. Another friend has been paying £800pm mortgage on an apartment in town for over 3 years (same ones rent out for £450)... it's been on the market for 18 months now and he's just lowered the price by 10k to try and get it sold, as he desperately wants to move. Even if he does sell it which is going to be difficult, there will still be 12k outstanding on the mortgage, which he'll need to fund himself.

On the otherhand, I've been renting for the past few years for a significantly lower monthly fee than I would have paid on a mortgage on same place. I'm not contracted into anything and I'm secretly waiting for all your houses to get repossessed, so I can buy them and rent them out exclusively to DSS clientele.

But my thoughts were focused on the fact that you could get more for your money (i.e. a bargain on a house) regardless of the fact that financial crisis is hitting everyone not just people with an adverse credit history.

Yeah, sorry, my post was aimed mostly at Shunks, just a bit slow in my reply

On the otherhand, I've been renting for the past few years for a significantly lower monthly fee than I would have paid on a mortgage on same place. I'm not contracted into anything and I'm secretly waiting for all your houses to get repossessed, so I can buy them and rent them out exclusively to DSS clientele.

The problem is that this time around, the banks aren't as willing to lend money. It's all very well feeling smug that the prices have dropped, but if the bank wont lend you the money to buy at the reduced price, then it doesn't do you any good anyway.