To think we are heading towards an economic crisis?

[crunchymint]

The pound has fallen as Brexit approaches and there are no proper deals in place.
Retail spending in Britain is down.
The Turkish Lira fell by 20% today.
The Russian Ruble has also fallen.
All of this will have an impact on the economy. I see us hurtling towards an economic crisis.

Yep, I don’t think there’s ever been a point in my life where things have been so bad.

Our family has recently reviewed our savings plan in order to be able to weather whatever may happen.

We’re preparing for 18 months of frugal spending money sat aside in a mixture of bank accounts and cash should banks have temporary issues we will have access to money.

It’s a scary situation. We’ve recently thought more about moving out of the country but where do we go? Seems that everywhere will be hit hard.

Surely the Brexit Dividend will fix it all?

But surely if we all turn super-frugal consumer spending will fall off a cliff and hasten the economic apocalypse?

Things need a shake up IMHO. House prices are far too high, and interest rates far too low for savers. The present economy doesn't suit everyone.

Yep, caperberries, it's well know in Economics as the paradox of thrift. What's good for the household is bad for the country macroeconomically. It's why rightwingers' claims that you should run the country like you'd run a household budget are fallacious. Austerity is bad for the nation's economic growth and continuity.

We are about to buy a house with a mortgage of 60% of its current value, fixed for 5 years.

Are we crazy?

The UK government will kill off the sick and poor, there will be riots and chaos.

Make your mind up, usually its the underclasses who riot . They cant do that if they are dead. Have you got any preferred death method? lobbing off a cliff a'la Logans Run?

We are about to buy a house with a mortgage of 60% of its current value, fixed for 5 years. are we cray?

No, interest rates might rise a little, prices might dip a little, but the fact of the matter is there are more people than houses, ergo the market will always recover.

For most people in UK they have been in an economic crisis since the bankers created one 10 years ago. True, brexit will add to it

Off a cliff? They’re vapourized in the film, and given a kind of ‘Brompton’s Cocktail’ gas in the book.

Brexit a symptom?? Brexit is a self-willed, self-made disaster.
And no, the D word is not hyperbole. Why else would Jacob Rees Mogg's company be touting ways of Brexit-proofing its customers' investments?

The next couple of years, is going to be one of those time periods were there is going to be a change in the World

I have been saying for a while, future GCSE history students will be explaining why the years 2010-2020 were so important in shaping the future of the UK and what could have been done to put us on a different trajectory.

Brexit a symptom?? Brexit is a self-willed, self-made disaster. Erm, and what is the root cause of that? It didn't appear out of nowhere, it had been decades long in its growth.

My grandparents in the 30s and 40, parents in the 70s, me in the 80s and 90s, now since the millenium. Post wars Britain has had major fluctuations, see saws of financial boom and bust. Brexit is another symptom of what happens when successive governments try to micromanage via taxes.

Seeing Brexit as the ultimate cause of any financial boom or bust is blinkered, dismisses far too much history of governmental meddling - all governments!

I think we needed to let the last fall out happen and i don't think things properly recovered, it built a false unsustainable floor. Now theres even less to trim and save for everyone (government including).

We've been in one for years.

But yes, there is an almighty bang coming down the line.

"On your credit cards, switch from direct debit to standing order. DDs pay the minimum amount every month and gradually decrease as you pay back the loan. "

That's not the case with my credit card - I have a direct debit which pays off the statement balance in full each month or if I have not used the card that month it takes nothing. When I set it up I could choose to pay the minimum, a 'boosted' amount (minimum + extra), a fixed amount or the full amount and obviously I chose the latter, but either way with 3 of the 4 options it will be a variable amount, so a direct debit does not have to be a fixed amount. I can change the option online at anytime (takes 30 seconds) so if anyone has a direct debit set up to pay the minimum it should be very easy to change it to pay the full balance, either via your online account or by phoning them.

But, yes, agree with paying off the balance in full each month, credit cards are one of the most expensive ways to borrow.

Economic crisis?

Yeah, and what of it?

What of it? It will mean that many people will really struggle, that's what

Well, we get what we vote for.

On my CC you can either pay by DD the minimum amount, or pay it off in full. Obviously, if you can pay it off in full, you're sorted. However, if you're struggling, just that small tweak of switching from DD to SO makes an accumulating snowball that pays the thing off much sooner.

Say for example, this month's minimum payment is £30.00
You pay it by DD. The next month (assuming no further spends) it may be £29.78. The month after, decreases to £29.55 etc etc. Ends up the best part of 20 years to pay off.

Instead, switch to standing order and set every month's payment at £30.00. Those extra pennies soon snowball, and you'll have paid off the balance within a 3 or 4 years. (Cut up/freeze the card)

What of it? It will mean that many people will really struggle, that's what And the people who are currently struggling may fare better...

I doubt it. More likely they will struggle more.

I know that "Trickle down economics" is a very questionable theory, but it is pretty much universally acknowledged that shit trickles downhill, even if riches don't.

An economic crisis is very, very, very unlikely to make those struggling better off.

Yanbu.
But I'm not sure that last one ever ended. Cameron and Osbournes austerity budget saw to that.