To be delighted that Brighthouse is about to go bust?

[AgeLikeWine]

It’s not all bad news at the moment. .

Brighthouse is a nasty, exploitative business which rips off the poor, the uneducated and the vulnerable by selling household goods at inflated prices on finance at extortionate interest rates. Their business model relies on creating spirals of debt in a similar way to Wonga.

Normally I would sympathise with the staff of businesses which go bust, but not in this case. Good riddance.

I have had to use launderettes on occasion and I would say £10 is a conservative estimate ,say you have a,seems worth of family washing ,I would use the larger machines usually around 15 or 20 kg,this can easily cost £6.50 a wash ,say I let my washing build up for a couple of week,s and use larger machines ,than it's the drying so you can see how laundrettes are not economical

For the poster who suggested washing clothes in the bath have you ever tried to do that ? Because I have on lots of occasions and it's not just washing the clothes it's drying them to if you can't afford a,washing machine it's unlikely you can afford a dryer ,so you your clothes in the bath wring them out as much as possible and hang them up to dry if it's nice weather and you have outside space than it might not be too bad but if it's the middle of winter and you are drying them in your home it can take days to dry seriously some people on here have not got a clue

They were clearly not making vast profits though as they’ve gone bust. Bright house was effectively loaning money to buy consumer goods to people who couldn’t borrow it elsewhere at better rates because of the risk of non repayment they pose (also small loans like this have high admin costs). You might not agree with that but their customers will now not be able to buy these goods. You might think that’s a good thing but maybe it’s not up to you how others spend their money.

Also same with people who work there. They are just doing a perfectly lawful job and it’s unlikely they can choose to work elsewhere. This whole post smacks of middle class patronising rubbish.

Apparently there are four directors who were on a salary of $136k each. And whatever other shares and what have you also.

Google bright house directors salary and you’ll see.

I don’t know if the whole chain is bust or just a U.K. company of the same name, in which case it probably has figures in pounds somewhere if you want to look.

@x2boys. And before you even get that far, you've got to be able to afford to heat at least one bath full of water. I'm sure that would use a lot more energy than running a washing machine on a short cycle.

My issue with the concept of brighthouse is people saying "but what will the poor do now?".

So low income person x owns a washing machine. They use it for 2 years. It breaks and they urgently need a new one and get one in brighthouse for £5 a week for years, total cost eleventy billion pounds. People on this thread saying "when you haven't a bean you can't get a second hand one for £50 or a new basic model for £149"... if you can afford £5 a week you can bloody save it during the 2 years you don't need it instantly.

Why do we snobbish assume people on low incomes can't afford to ever save weekly, but they can repay expensive weekly credit?

It's a way of living, a habit. You get used to having everything now. There should be more education for young people to discourage them ever falling into the never ending debt cycle.

*NoIDontWatchLoveIsland because as numerous people have stated. It's hard to ringfence money when it's in short supply. So, you start saving £5 a week towards a new washing machine the week you take delivery of new one. you might get to £30 and then the cooker breaks down or your child loses their coat or your heating breaks or whatever else suddenly becomes a priority. The washing machine only becomes the priority when all your other things are fine. It's a vicious cycle that is difficult to get out off. The £5 a week for brighthouse has to be found becasue it's now a debt, not a saving account that you can dip into.

No-one is saying that poor people are stupid or don't know how to save, we are saying that they have very limited options, usually no overdraft facility, usually no opportunity to get extra work or overtime, no-one they can borrow from.

And what if they don't actually have the nice shiny washing machine in the first place to use while they are saving for the next?

It's such a shame that people have got used to feeding and clothing their families now and not waiting until they can save up...

We all know there are feckless and useless people and folk that just haven't been shown how to budget out there, but it's not true for most and they struggle to make headway against the odds. Brighthouse and their model was shit. However what should have happened is some way f making facility for people to get goods that are necessities as a reasonable rate. I wouldn't have allowed them to sell 50 kinds of expensive tv for example. Just a few models in a couple of sizes. same for sofas and furniture. vast choice at inflated prices isn't necessary, a few simple choices at reasonable cost is fine. Then limit the interest rate to something reasonable taking into account the risk and bob's your uncle. They could even charge a higher rate but give a bonus back at the end for prompt payment to lesson the risk for the lender.

Loads of ways that it could have been done.

I'd feel the same as the OP if Sports Direct closed down for good, other than for the staff who would lose their jobs.

Your not getting it are you @NoIDontWatchLoveIsland? have you ever been i n a,position where you literally don't have a,penny left at the end of the week/ month? I have lots of times Yes I could try and save £5 per week but if I have,nt got a penny to my name and need to buy some food to buy food to last until payday than I'm not going to let my kids starve knowing I have a washing machine fund am I? ,people in this position probably can't afford Bright House eother but they know that money,s going out so they can't use it for anything else ,some people are so stuck in their middle class bubble they just can't understand how others live .

I'm probably being a bit thick (haven't RTFT ) but a lot of talk about laundrettes, and very little talk about how to get to one. Which for many people is at least one bus ride, maybe two .... presumably in those "free buses" they have these days ? Of course it may be no bus rides, but a taxi ride instead. Again in one of these "free taxis" they do these days.

There,s one about a ten minute walk from me DGRosetti, which is all.well and Good but I don't drive and whilst Dh does it I'm doing the washing whilst he's a work and the boys are school ,walking ten minutes uphill with a week or two worth of washing in no mean fete !

walking ten minutes uphill with a week or two worth of washing in no mean fete

Especially if you have to bring it back wet as you cant afford the tumble drier.

I hope more unscrupulous business go bust because of this

I’d feel very despondent if I had to work for a company with such low morals that regularly make customers scared and cry.

The less of them about the more room for joe at businesses I hope

I feel sorry for the workers who have lost their jobs and hope they find new work and don’t struggle with having this company on their cv

There is one very ordinary thing (present times excepted) that I feel thankful for every time I do it, and that is doing the grocery shop.

When I was brought up my parents constantly struggled to keep us fed and clothed. Now I can go in and put what I want in my trolly without really thinking too much. Obviously I am a product of my childhood so I don't go ott, and I donate to the foodbank, but that worry isn't there and I'm very grateful for that.

I know it's sadly still the case that many families struggle for the basics.

if you can afford £5 a week you can bloody save it during the 2 years you don't need it instantly.

Okay, so I’ll save £5 a week for my emergency washing machine fund. Oops, best not forget the oven. £5 a week in that too. And the dryer. And the television just in case we lose our one entertainment. And the fridge. And the freezer.

£30 a week in just in case savings I’m up to now!

Do you see why your comment is stupid?

I just had a look at their website and shocked to see that they are renting out things like massive hi-fi systems and Playstations

No way is that an essential

And at 70%apr!

If people used them just for emergency items in need then they would just sell washing machines and ovens etc.

Not recliner sofas, massive tv’s and consoles

Even the worst credit card companies out there for people with no credit offer better rates and then you can shop around or even buy second hand.

That would be the sensible option for someone in absolute dire need of something immediately

When I’ve been without a cooker or a washing machine when one breaks down and I can afford to have it fixed or replaced straight away I haven’t gone to bright house

I’ve used friends and neighbours machines and used alternative ways of cooking

The mentality of must have new as soon as something breaks without even waiting for a repair or saving up for a second hand replacement is rediculous

It does help some folks with bad credit get things though, my brother currently has a fridge freezer with them, does this mean they will take it back from him?

no credit and bad credit are different things. Also difficult to pay for 2nd hand goods or repair men with a credit card so then you have to use it for cash withdrawals which will then have a fee and higher interest rate, you also probably need access to the internet to apply for those whereas you can walk into a store and set it up.

I'm not defending brighthouse, I think they are awful but I can see how it's hobsons choice for people and how it's easy to get sucked in.

It's far easier to go in there, pay your fiver a week and get a new sofa, whereas if you want one from someone selling on facebook, you need to find the cash straight away, travel to wherever and if you live in the sticks, that might not be that close, then you have to try and arrange someone to collect it for you and deliver, then you find it's broken and you have little recourse so you are then left trying to dispose of it, probably for a fee from the council. Now you are well out of pocket and still no sofa.

I feel sorry for the people who will loose their jobs but generally, I agree - a company that the World can well do without.

For the pp wondering about collection of goods - I think Brighthouse customers are about to do very well out of it.

Brighthouse staff won't be collecting now - why would they? They're losing their jobs and won't care.

The administrators won't be collecting anything - they'll either chase the individual debts themselves (unlikely) or sell them on to debt collection companies. Unless of course they just decided to write off customer debts which is also possible.

Debt collection companies will take what they're given. Claim financial hardship and pay it off at a fiver a month until they write to you offering a ridiculous discount to clear it - then end up paying £80 to clear a £600 debt (or similar).

Either way, no one will be coming to get stuff now.

I definitely agree with those saying about having to prioritise and not having the luxury of putting away hypothecated savings for every eventuality. As has been said, a currently-working washing machine or fridge is no priority at all, whereas buying food and heating your house IS a huge priority. When the essential appliance breaks, it forces its way to the front of your priority list, but before then, you just live in hope that it will keep working, at least until, well, forever.

It's a form of self-insurance. Think about the massive insurance companies. They have millions upon millions, if not billions, at their disposal - but if EVERY house and business they have on their books burned to the ground tomorrow, they'd be well and truly stuffed. If they have to work on the principle of hoping that a majority of potential problems won't occur, what hope does a single mum on benefits have?

Life for the poor is constant treading water and it's why most poor people stay poor whilst the rich get richer. It's true that you have to speculate to accumulate, but it's also true that you have to have the available funds with which to speculate in the first place.

If you owned land which happened to be on a diamond mine worth £100m, but you didn't have the necessary few thousands available with which to buy digging and extracting equipment - and nobody is willing to lend it to you - you're not really in any better position than somebody whose house is built on a load of worthless rock. What you will find (as have many folk in Africa) is that there are plenty of rich people out there who will be happy to come in to your land and mine it to gain the riches for themselves, but they won't be interested in throwing you more than a few crumbs. In fact, if anything, they'll leave you in an even worse position than you were in before, when at least the (diamond-filled) foundations of your house were still in place to keep your humble home stable.

X2boys
people in this position probably can't afford Bright House either but they know that money,s going out so they can't use it for anything else

This is what I mean about different attitudes to money.

If people really don't have the money to save how do they bloody pay brighthouse? It's the same money but your attitude towards it changes because it's a debt.

What i mean when i say its a habit/way of living is that natural savers regard saving the same way - sacrilegious to touch it unless absolutely needed. If you grow up with it drummed into you that debt is not an option, your behaviour is different.

More often than not it a single first decision, at the age of 18, which kick starts being stuck on debt. It's the 18 yr old who signs up to the expensive phone contract. A year later, they need a washer in their first flat. But they've spent £250 in the last year on that iphone, money which they could have saved. So instead they get the washer on tick- 30 a month. 3 years later, they need another white good. But because they've spent what little they had spare on the washer repayments, they have to get it on finance again. Etc.

My grandfather was absolutely dirt poor but regarded debt as something you simply don't touch and he spread that attitude through much of my family. If we could get more young people to do without more to avoid those first debt decisions, maybe fewer people would need brighthouse. Not all, but fewer people.

*When I’ve been without a cooker or a washing machine when one breaks down and I can afford to have it fixed or replaced straight away I haven’t gone to bright house

I’ve used friends and neighbours machines and used alternative ways of cooking

The mentality of must have new as soon as something breaks without even waiting for a repair or saving up for a second hand replacement is rediculous*

This. I ran out of food at uni. I begged and scrounged packets of super noodles (6p a time in Sainsbury's at the time) and that's literally all I ate for a while. I got anaemia.

I've had a broken washer too - I got anyone i could to run loads, i hand washed, i wore nothing in bed and very little when at home alone to reduce washing.

There are people with no money who manage to not borrow. It is possible. Credit is expensive.

"This. I ran out of food at uni. I begged and scrounged packets of super noodles (6p a time in Sainsbury's at the time) and that's literally all I ate for a while. I got anaemia"

Making yourself ill is better than getting an essential item on credit? Begging for food and to use other people's washing machines and cookers is better?

(Can you imagine the AIBU thread from someone complaining that their friend/neighbour was constantly asking them to do their washing? I think we'd be getting very different opinions.)

Yes @sonichu. We've apparently got folk washing their knickers in the canal and begging food from other people who probably don't have much either. But they are the ones in the right here...if that is to be believed. And obviously no-one is ever to choose a different path.

To be honest I would do everything I possibly could before I'd go into debt but I understand that people have different circumstances and sometimes very few options.