Living costs rising and debt

[Rayn22]

Had a chat with my friend today who is worried. With the cost of living and energy prices going up they are not going to be able to make their loan payment once bills, food and essentials have been paid.
Made me realise they won't be the only ones. She is going to get some advice but I think this will be the case for a lot of people.
People will have taken out loans, etc but there is going to be a lot of people who can't pay them back especially this Winter.
It's just another shit thing to happen. It's ok saying people shouldn't have taken them out but at the time they were affordable. A lot of people are going to struggle paying off debt they previously took out.
Just wondering how understanding debt companies are going to be!

No sympathy. people wanting instant gratification, taking out loans, spending it on crap for the house. debts need to be paid.

Just want to point out that not all loans are spent on frivolous things. We have a big loan that was spent on essential repairs to our house. The damage and deterioration to the roof was becoming more and more substantial as time went on.

We overpay it currently and should have it paid off by this time next year. We don't normally take out loans or things on credit, so it does sit very uncomfortably with me.

People were offered mortgage "holidays" if they were furloughed but I remember from the time those with cars on HP struggled to continue to pay those bills as the company's, understandably, still wanted the debt repaid and a contract had been signed.

I think a lot of people will need to start to extend the length of their mortgage. I would suspect the banks would rather do this that go down a route to repossess a property.

Debt restructuring organisations are going to be busy!

What a shallow comment.

I think instant loan companies will make a fortune of people. Some debts will be spiraling. Very tough times.

There's always one. If you have nothing nice to say...

I think if people have a repayment mortgage and it is not on a fixed rate then ring bank and ask about fixing it at low rate for 5 years. This is what Martin Lewis recommend.

If a person can't pay repayment mortgage because of rising utilities then ring bank and ask to go to interest only for a limited time.

Always pay highest rates of interest off first. I have just paid off Nat West credit card because they have hiked interest rates by 2 Percent. I know not everyone can do this but try to pay it down before utilities spiral further.

@oiltrader I feel sorry for you.

@oiltrader judgemental or what you have no idea what people need to take loans out for ?

We had to take out a 2k cc to repair our car , only 6 years old and we thought we would have no large bills as a newer car, but had a major fault and was £3 k we had £1k saved for car / emergency but had to borrow the 2k , couldn't get a loan so had to use CC which was low interest , but the interest has gone up a lot over the last year and going up more
My dh has to use his car for work purposes so was a catch 22 , no car would mean no job, spending 1 k on another car would of not got us anything reliable even
So a lot of debt is essential not just a night out / holiday

live within your means. borrowing means you living beyond your means. zero sympathy. all these PCP cars will have to returned next year

I honestly don't know what ordinary people are going to do with the cost of living crisis. Food is becoming unaffordable and the cost of energy is definitely going to mean homes with no heating this winter. I think there's going to be civil unrest. I am worried sick TBH.

Nope. Now I just really pity you @oiltrader.

I wonder what happened to make you so simplistic, judgemental and frankly not that bright.

Well you can't get blood out of a stone.

I think loan lengths are going to have to be extended in these cases. Win - win for the bank as they'll get more interest overall and will probably charge an admin fee to change the terms.

Oil trader does have a point. The loans still have to be repaid. Lenders aren't going to write them off en masse (despite what some mumsnetters think). The choice will be a longer loan term (see my post above) or a trashed credit rating.

No. Her only point is to illustrate that she had no sympathy. That's not a useful point that's just enjoying a misplaced sense of superiority

Are you actually being serious?? Mine and my Husbands cars both broke in the same week, big problems totalling £4k. There is no way we could afford that so had to put on a credit card. We both have jobs a fair distance away with poor public transport links. We need our cars! Seriously, perhaps engage your brain before you comment. Such a sweeping generalisation.

Spot on..such a snobby comment to make. Not everybody takes out a loan for frivolous reasons and not everyone has a massive salary where they have huge amounts of disposable cash each month! Such a vulgar, ignorant comment to make.

a realist. will be fun watching all the buy now pay later mob having to pay a lot later now!

No - not a realist - just someone who can only think along one trajectory- and cannot seem to understand that the reasons that people end up in debt are many and varied and not all to do with profligate spending.

Furthermore the gleeful 'I told you so' tone of your posts suggests a tendency to schadenfreude. Usually a sign of emotional insecurity- and for that, you have my pity

Your idea of fun baffles me.

a realist. will be fun watching all the buy now pay later mob having to pay a lot later now!

Charmed - I'm sure.

@oiltrader no just likely someone privileged who hasn't had some shit things happen to them but who seems to get glee out of watching others suffer
You do not know everyones situation and why some may of had to use credit

@oiltrader many people do live within their means then they could loose a partner and suddenly have to borrow
Can you really not see how life isn't always easy for some
Sometimes life throws us a curveball , I mean do you have a mortgage ? If you do why as thats not living within your means is it, a mortgage is still credit

they are in the minority. seeing hair dressers rive Range Rover Evoques on PCP is hilarious

Let's assume then we don't talk about cases like this. We talk about normal people who have no possibility to save lots of cash and shit happens to them like long term illness or leaking roof.