How are people surviving

[Truthseeker456]

I don't get it. One income and I am on a what was a good wage 53,000. My mortgage is likely to double next year I have nursery fees and 3000 take home and always in my overdraft. How are people surviving, we don't hear anything in the media. Rents are also though the roof

On mortgages, our fixed rate expired in early Feb this year but we were allowed to agree a new deal from October 2022. We agreed and locked in a new rate in October, and started the new payments on 1st Feb 2023.

We didn't have a crystal ball but worked out we could afford what was offered in October so took it. It also wasn't unsurprising that interest rates were going to go higher, that always happens in times of high inflation. We could have gone on to a variable rate and chosen to take a chance on interest rates falling or at least stabilising, but it was not something we had the appetite for.

Yep, that's a potential new housing cost gap opening up too. In addition to age and region. And of course, it'll be most keenly felt by those in the most expensive areas and who are youngest.

Stop blaming the average person for systemic failures.

We should have had greater energy security - this government has done so little on renewables.
We should have had better insulated homes - this government cut that right back.
Transport costs in the UK are far higher than comparable countries.
Childcare costs in the UK are far higher than comparable countries.
Wages are very low - no wage growth since 2010.

People can't control interest rates and most people just buy regular family houses - which are getting smaller on new-build estates. They were stress-tested by the mortgage companies and deemed responsible borrowers. It is not their fault EVERYTHING got more expensive at once.

Really struggling on similar income like your OP. Live in london. Dont go out anymore, dont remember the last time I had a takeaway. Such a shame as I will never retire, never have a hobby as there is no money left. Single parent with SEN manchild.

The currentninterest ratea are merelt returning to waht was normal pre 2008. The issue has been the cloff edge - we wnt fotm oaying 1.6% to 5.4% in an instant.

However people were foolish if they thought the era of very cheap credit would last forever. During the period of very low interest rates we priortised over paying the mortgage over saving (excepting the obvious emergency buffer).

Hope things get better for you @PoliticallyIncorrectHitchling. Single parents really have it the hardest.

I do wonder this sometimes.

It honestly feels like we are not living just enduring each day. It is awful for everyone.

How isn’t 50k modest?

Honestly I think 50k is a ok income but I wouldn’t class it as a high income….. high income to me is 80k+

My Husband earns just shy of 60k and I wouldn’t call it a great income. Yeh it’s good but it’s not fantastic.

i earn a basic income as I work around the kids and I would personally say my income is shit.

We don't have a mortgage. So while we've massively cut back and stopped almost all luxuries, we can eat, heat and manage the house. We're low earners with no child care costs though so we are in a unique position.

We used to live in that permanently behind, robbing Peter to pay Paul way before though. It's rough and the toll it takes mentally is massive. It's not spoken about enough, I fear so much for people's futures with the mortgage and rental increases. It's not sustainable and I don't know how people will cope. No one should ever have to live in poverty. Being in poverty is like torture and unless you've lived it you can't understand it.

Comping got me through poverty! I won so many bits and bobs. It's time consuming, but when you've won a home spa set your mum's birthday goes from being how will I afford this? to something you can look forward to again. Stockpile the prizes for special days.

It's not about hindsight. It's about not leaving it to the last minute. If that poster had found the best rate was say 5% and they applied for that back in May for September they had months in which they could switch should the interest rates drop.

@readbooksdrinktea I was thinking about this the other day.

I think there are a lot more opportunities for frictionless spending these days, so it is harder to keep track.

Yeara ago when Amazon jist sold music and books I signed up and was soon spending £40 - £60 a month on CDs and books. I was horrified how easy it was to mindlessly spend. I cancelled my account and never used Amazon again.

@HashBrownandBeans our food bill is similar. Family of six, two adults, two teens, two tweens (and 3 pets which I wouldn't normally mention but the price of cat food and litter in particular has rocketed. The dogs thankfully don't eat huge amounts-they are small breed and just not big eaters but the Cat costs us loads and rising)

Yes. This.

THIS

Basically those in poverty have nothing left to cut back on, I really feel for these people as it must be hell.

However, higher-waged jobs normally mean more responsibility, stress and pressure. So it really sucks to have hardly any disposable income and very little left to save. If you'd have told me, ten years ago, we would be on £70k with no mortgage but due to COL and supporting student children we're struggling? I would have not believed you.

And to clarify, by struggling I mean having to cut back on things and not have much of a life, I am well aware it's all relative.

Absolutely.

Also, while I don't dispute that some people will be in trouble because of buying more expensive properties than they needed, others would've either been where they are now or private renting instead. And private renters are going to get fucked over by this too, because landlords with mortgages pass those rate increases on and it has a ripple effect.

Lockdown and furlough made it inevitable. We just didn’t know when. People have been waiting and watching for when. At least 6 months ago inflation became more widely discussed.

I protested Lockdown at the time partly on those grounds.

£50k does not go far if that is a single income, in many parts of the UK. If there are two earners on £25k, people would see that as a below average income but it's actually more after tax than one person earning £50K.

I think it’s important to realise nearly everyone has been hit by the cost of living crisis. Most people live to their means.

People in the middle income bracket have always been hit relatively hard. There’s not the government support people in lower income brackets earn, there’s often been a need to move to more expensive parts of the country for work, there’s been a 5+ year delay getting into the job market often racking up huge debts. Low starting salaries, long hours, often living a distance from family support.

The middle earners prop up a lot of the economy, esp the economy people on lower wages work in.

Of course people like the OP are struggling, life was set to a £53k wage, childcare is needed )often in an expensive area away from family support), housing costs higher. 8.% on these higher costs hits hard.

Of course people on lower incomes are struggling. It doesn’t mean people on middle incomes aren’t too.

The vast majority of the population can absorb the increase in cost without changing their living standards. Some are struggling some are not. It's always been like this.

Also 53k is not a good salary in London.

Yet there are people on minimum wage style jobs who are still going on holidays and having their nails done regularly. I don't get it. Agreed that food prices amongst everything else are ridiculous.

I’ve been asking myself the same thing. Although I am a single parent so only my income. But once my rent and bills have come out I’m left with barely anything. Gone are the luxuries I used to have of a meal out, or treating myself in any way. This isn’t living it’s surviving. And I look around and everyone still seems to be affording holidays, new cars etc. It’s making me feel like a failure even though I’m doing my best just to pay bills and eat. Thinking of everyone going through the same thing it’s awful.