While things are bad, I do think that the papers and news programmes are actually making things worse - they seem to enjoy reporting the bad news! It's the same when there's a disaster somewhere - if you watch Sky News it's on a continual loop, and the enthusiasm in there voices is so obvious compared to reporting good news!
Hi Ang,
Skippy (hi skippy) is absolutely right, journalists (and I used to be one) have to focus on the negative in virtually every story, it makes headlines and headlines sell(unless you work in the sport section then they will argue it's the back page that sells the paper, but that's another argument) They have a job to do and those pages have to be filled, and unfortunately the bad stories do sell better than the good positive ones. Working for yourself the last thing you need is all this doom and gloom hype it just makes everyone depressed more than you should be, there are still plenty of bargains out there if you look. As to the housing market , yes sure they have come down a little, but if you are going to stay there and it's your home then it doen't really matter what it's worth, it's your home and that's all that matters. And if you have to move or lose that particular bricks and mortar then that doesn't matter either, home is what and where you make it, your family are what matters not what your home is worth or isn't worth. There are plenty of great things about life, don't worry and focus on the bad things and don't let the news teams let you loose sleep over it all. Life can be very good and positive!
Best wishes guys
Mike
My own view is that it is all about perspective and, of course, timing. I watched a report on my local channel on this last night where a couple were bemoaning the fact that their property had fallen in value from £400k to £350k in 6 months. The fact that they bought it for £10k in the early 70's was mentioned only once. As we all know, an asset is only worth what someone is prepared to pay for it, so if they get less when they sell, then buying another one will cost them much less also. I bought my house 9 years ago and it is undoubtedly worth a lot more now than when I bought it, but is probably worth less than it was a year ago. Does this make any difference? Not really, an increase in house value doesn't put food on the table, nor does a decrease take food off it. Only my opinion of course, I wonder what others think?
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
I agree it's all relative. Even when house prices were spiralling upwards, the only people who actually benefited from it were those people who sold and either downsized, rented or retired abroad (oh and the estate agents and the Taxman too). Those who were buying another, better, house always found their target property had gone up too, only by a greater margin.
To me the curse of modern-day living has been the remortgage and especially secured loan. Nearly everyone's done it - taken out a 25 year loan to provide cash for the 2 week holiday, the car that gets traded in when it's 3 years old etc. etc. etc. THe adverts made it sound so easy, didn't they. It's not a problem so long as the payments can be afforded (including the PPI that will probably never pay out) and you are happy to stay there long term. Of course, once 1 of those 2 factors does not apply, particularly in the current climate then options are very limited because the family silver has effectively been pawned.
Last edited by ianmillington on Wed Sep 10, 2008 10:06 am, edited 1 time in total.
Ian Millington
Insolvency Director
PDHL Ltd (formerly Personal Debt Helpline Ltd) www.pdhl.co.uk
Exactly Ian. No real point blaming Carol Vorderman of course, but those adverts were, and continue to be, highly seductive. It is also to be noted that they have a business to run and so they can hardly be blamed for making their product as attractive as possible, and people are clearly warned what will happen in the case of difficulties before they sign up, but nonetheless a definite blight as you quite rightly say. Especially so in the cases where, because credit rating is still good in the case of consolidation as the original debts have been paid off, the original debts are then rebuilt back up over the course of the subsequent years leading to massive liabilities with very little room for manouevre when the chickens come home to roost.
Regards.
Last edited by size5 on Wed Sep 10, 2008 10:13 am, edited 1 time in total.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
A very good point in that by doing the secured loan you preserve the credit rating which enables you to get into more debt. It always brings a wry smile to my face when someone asks me how an IVA will affect their credit rating. Sometimes it's a bit like smokers and their ciggies - I went down that particular route a few years back, you know they are the cause of many a problem but having to live without them seems miserable at the time.
Interestingly I remember a few years back that in America some people started trying to sue the celebrities who appeared in adds where the products had done them some harm. Damn! I've cut myself shaving, must sue David Beckham! Don't suppose I'll get too far with that one[:D]
Ian Millington
Insolvency Director
PDHL Ltd (formerly Personal Debt Helpline Ltd) www.pdhl.co.uk
I completely agree about the secured loan market, and predicted at least three years ago that this would create a big problem for a lot of homeowners who were falsely lead down this route by credible celebrities and happy, smiley family advertising.
The two main companies are based in my part of the world, and have effectively ceased trading making a lot of people redundant.
It's the ones with the high PPI that make me cross - I have a client at the moment who was sold £18k worth of PPI cover - and is only actually covered for the first five years. He was told that he would not get the loan without taking out the cover - needless to say a claim is in hand.
You can purchase stand alone protection, which is invariably much cheaper, should you wish to buy that product. You should also be aware that there are various other ways in which PPI can be considered to have been mis-sold as well.
To address Mel's point of high PPI and mis-selling, I have also recently looked at a blatant case, a secured loan, where the amount recovered was in effect a complete write off of the debt, not just the PPI proportion, an absolute godsend to the people involved.
Regards.
Cert DR
23+ years in debt advice
I do not post for anyone other than myself
One positive about the drop in prices is i just may be able to keep my home now. In May there was 8k equity in my house, by July this was £3k now i would be surprised if there was any equity at all. I would be quite happy with another small drop in prices as long as they pick up again in about 3 years when the OR will hopefully no longer have an interest in my home.
Mike - did you process the case in house, or use external claims consultants? Either way I would love to swap notes with you on our respective cases, and perhaps you could help my clients at the same time. E-mail me direct if you have any info which might be of use. Thaks!
That's great - I've received your note Mike and I will be responding. This is an area where I feel that a lot of our clients can be helped, and look forward to having a chat.
