Ton – some people decide that they can easily afford debts on their current income and at 0% interest it’s cheaper to pay for things on credit than it is to use savings. Then a recession comes along and totally removes your income and you are stuffed…

the-muffin-man – Member
project – that all depends on whether your mate voluntarily handed the house back to the mortgage company. They have sneaky ways to make you sign forms so you are always liable for any shortfall.

If the house sale was dealt with by the official receiver then no debt should be left after bankruptcy.

Posted 2 hours ago # Report-Post

He walked into the building society, handed over the keys and told them it was now their house,and he thought that was the end of it, how wrong he was, im sure they wanted about 35,000 off him a few years latter, as they told him they give people a chance to get their life together and earn some money before sending out the threatening letters/demands etc.

Almost everyone I know has total debts well in excess of 300k mostly mortgages.

Quite a few have several additional properties mortgaged up on buy to lets so somone else pays the mortgage, that is so wrong IMHO, no rational reason for thinking so, it just seems wrong..

I wonder what happened to the old rules about Mortgages being 3x your salary max and stuff like that… I know somone who has total debts of around 15 times their salary.

Just found out that a friend’s wife has (apparently) unbeknown to him ran up debts to the tune of £98,000.

Why is it that so many women have no control over spending, no alarm bells?

What bit of their brain isn’t working?

Totally beats me!

Divorce her!

One question though, how could he not notice that she had spent £98,000k? Seems like he’s partially to blame.

Time there was legislation to stop credit card companies letting individuals get into such a mess!

Quite a few have several additional properties mortgaged up on buy to lets so somone else pays the mortgage, that is so wrong IMHO, no rational reason for thinking so, it just seems wrong..

Why does it seem wrong?

Everyone gets what they want in this scenario – the landlord gets a property paid for over the years, but they take a risk on the price and on being paid. The tenant gets a serviced house they can get out of at short notice. OK, they pay a premium, but it suits them to not have a 25-year commitment hanging over them.

ton – Member

“and the idea that someone should be allowed to spend and spend and build up such debts, then just say **** it and go bankrupt is disgusting.”

What’s your alternative?

northwind…………no idea mate…..but it is wrong.

make it a criminal offence maybe……..and make the debtor work the debt off??????????

who knows,

make it a criminal offence maybe……..and make the debtor work the debt off??????????

Most bankrupts end up with an Income Payment Order in which they pay back a chunk of their income through the official receivers which then goes to their debtors.

Criminal Offence?
Aye, we need more criminals in this country! For every reckless spender, there’s someone who has fallen on hard times through no fault of their own.

mate, there is also a lot of people who spend spend spend and **** the consequence.

is that not a kind of theft/fraud when using a cc?

Quite a few have several additional properties mortgaged up on buy to lets so somone else pays the mortgage, that is so wrong IMHO, no rational reason for thinking so, it just seems wrong..

Studying finance markets at the moment, and this is basically how the entire world works. Where do you think the mortgage company got the money from?

we baled out ireland in a similar way. Issued bonds at 5%, lend to ireland at 7%. Ireland is paying us money we’ve borrowed to give to them etc..

Almost everyone I know has total debts well in excess of 300k mostly mortgages

Jebus! so when people say they have a small mortgage, what do they mean? small I thought was 10/25k

Used to be an offence didn’t it? Debtors prisons or something? Maybe they still had them when you were a boy ton? 🙂

bastid…………. 😆

Quite a few have several additional properties mortgaged up on buy to lets so somone else pays the mortgage, that is so wrong IMHO, no rational reason for thinking so, it just seems wrong..

Why does it seem wrong?

Everyone gets what they want in this scenario – the landlord gets a property paid for over the years, but they take a risk on the price and on being paid. The tenant gets a serviced house they can get out of at short notice. OK, they pay a premium, but it suits them to not have a 25-year commitment hanging over them.

And so speaks a landlord! Ever thought that the tenant has no other choice and they would rather be paying towards a mortgage? Basically everybody I know who rents does so because they can’t get a mortgage.

You wouldn’t believe how common this scenario is. It’s usually only when one partner’s debts can no longer be serviced by income that the other one finds out.

Yes everyone gets what they want… 🙄 Can I visit your planet someday?

These really bad debts are as much the fault of the lender where they are often verging on fraud with what they are doing.

People in uncontrolled debt often feel like prisoners. The stress it creates is beyond belief.

Never as black and white as just saying they spent too much. The old saying that we are ALL only 3 paycheques away from the streets hold true for a lot of families.

The Debt bubble is also the very reason why we are in this mess globally. Banks were literally throwing money at people.

In response to the ‘moaning at landlords’ comments – surely everyone DOES get what they want?
OK, the tenant doesn’t own the house, but speaking to a lot of my colleagues, they pay much less rent for their bling flat in Canford Cliffs, than I do on my house mortgage (NOT in Canford Cliffs!), plus they don’t have to worry about house upkeep etc. Sure, they’re not on the housing ladder, but that costs a LOT of money to even step onto the bottom rung, and if you’re in a situation where you’d need to shift location quite frequently (as a lot of doctors do), then buying-selling-buying-selling is a sure way of dumping a lot of dosh into the ether.
BTW – I’m not a landlord!

DrP

Some people don’t want to own a house you know, it’s not compulsory 🙄

sorry, haven’t read much above yet but this strikes me..

I, however, know nothing about this type of thing and this may well be shockingly bad advice, given that he may struggle to get a mortgage in the future.

why is getting a mortgage so important? Is that the end of the world then?, not “owning” property. Plenty of people who rent live happy and fulfilling lives y’know.

Re: CAB, our local council have just cut 85% of the CAB funding! right now, when people needs ’em!

Renting a house when bankrupt is also hard, if you go through an agent you will need a garrentor, however if it’s a private landlord then you don’t have to declare it.

Mate of mine’s wife spent their £180k savings on online bingo, then racked up another £25k on their joint credit cards.

She has a good job too, so it wasn’t like she was sitting at home all day or anything.

They are now getting divorced.

I was gobsmacked when I found out.

Re landlords.
The house price boom of the last twenty or so years has been fueled by easily available, cheap mortgages. Lower paid workers especially in the South East are now forced to rent as they simply do not hit the salary levels required to borrow for a mortgage at the prices of houses in 2011. Many would prefer to do so in order to have an appreciating asset rather than paying the mortgage on someone elses appreciating asset..

While this is going on those who do have the credit line through either high salary or simply because they got in early before prices reached the levels they have (like me) get to buy additonal properties to let and the cycle continues.

Strikes me that lenders, estate agents and various others have driven the market to a point where many people simply cannot afford not to rent. I know it was ever this way but still seems wrong somehow perhaps I’m just an idealist and pretty niave.