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Are the Banks in TROUBLE!! or just damn GREEDY!?


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Further to a thread I posted out this morning - about business's being "shaky" 

2 days ago I was informed by my bank - Lloyds - that savings account rates would be going DOWN from 0.02% to 0.01% in February 2020! WTF!

I have now seen several other worrying signs that, IMHO, are quite revealing/worrying!

Banks are getting desperate to generate (read - ripoff) more income by  - - - HIKING the heck out of Overdraft fee's

First Direct follows HSBC in hiking overdraft fees from March - - - https://www.moneysavingexpert.com/news/2019/12/first-direct-follows-hsbc-in-hiking-overdraft-fees-from-march/

 

And an awfully large percentage of the populace are ALREADY close to the precipice!! 

‘We’re only an accident away from having nothing’: How HSBC’s new overdraft charges could harm British families

Read this one here - - https://www.independent.co.uk/life-style/hsbc-overdraft-charge-fee-bank-interest-rate-a9234346.html - - SCARY!!!!!!

 

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Not only that but they are also increasing rates for premium bank accounts too. Someone I know who pays for their bank account (for additional perks of course) is having the rate being hiked up in the new year. Regular savers giving 5% have all pretty much dissipated as well. 

 

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'NHS midwife Jennifer Stephenson, 32, and her husband, 35......from Preston, who have three school-age children, both work full time but still fall short by around £200-300 per month and rely on their overdraft to pay for everything from weekly food shops to fuel bills, school shoes and Christmas presents.'

Is this true? A dual income family of 5 can't survive without an overdraft?

Technically, alcohol is a solution..

'It [socialism] poses a growing threat, however unintentional, to the freedom of this country, for there is no freedom where the State totally controls the economy. Personal freedom and economic freedom are indivisible. You can’t have one without the other. You can’t lose one without losing the other.'

"There is no such thing as public money, there is only taxpayers' money"

Let not England forget her precedence of teaching nations how to live.

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1 minute ago, Roy said:

'NHS midwife Jennifer Stephenson, 32, and her husband, 35......from Preston, who have three school-age children, both work full time but still fall short by around £200-300 per month and rely on their overdraft to pay for everything from weekly food shops to fuel bills, school shoes and Christmas presents.'

Is this true? A dual income family of 5 can't survive without an overdraft?

Could very well be, although people as a whole aren't great with money, things do crop up which put on you on the back foot and then if you have a stagnant wage with rising costs, its a very slippery slope. I know a lot of people struggling right now, some of whom have actually asked to borrow money.

Worrying times.

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Perhaps.

Bear in mind I don't live in the UK and am probably talking out of my a*se but I cannot believe a dual income family are struggling.

They must be poor money managers. The overdraft could be cleared within a few months with a bit of sense. Buying gifts on interest accruing overdrafts?!

Too much instant gratification. Every working man can afford the basics in life.

 

Technically, alcohol is a solution..

'It [socialism] poses a growing threat, however unintentional, to the freedom of this country, for there is no freedom where the State totally controls the economy. Personal freedom and economic freedom are indivisible. You can’t have one without the other. You can’t lose one without losing the other.'

"There is no such thing as public money, there is only taxpayers' money"

Let not England forget her precedence of teaching nations how to live.

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I think the various fee hikes/interest rate hikes are just a knee jerk reaction to the changes the FCA are forcing the banks to make to the way they currently charge for overdrafts. Banks will do everything they can to ensure they aren't the ones losing out from those forced changes and this is what you are seeing here.

Bank overdraft fees: all you need to know about the changes

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The price of debt is rising for consumers? Its almost as if we are in a debt deflation!

I think the problem specific to overdraft use stems from people being poor with a budget. 

I have this quote, some Victorian wisdom, I think it may be from Dickens; 

"Annual income twenty pounds, annual expenditure nineteen ninety six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."

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3 minutes ago, KDave said:

"Annual income twenty pounds, annual expenditure nineteen ninety six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."

It should be the signature at the bottom of every bank statement! 😊

Technically, alcohol is a solution..

'It [socialism] poses a growing threat, however unintentional, to the freedom of this country, for there is no freedom where the State totally controls the economy. Personal freedom and economic freedom are indivisible. You can’t have one without the other. You can’t lose one without losing the other.'

"There is no such thing as public money, there is only taxpayers' money"

Let not England forget her precedence of teaching nations how to live.

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P2P is in trouble too.

06/12/2019

Important Announcement: MoneyThing in orderly wind-down

Summary

We have taken the decision to place MoneyThing into orderly wind-down and we are no longer taking any new investments or new customers.

We have found it is increasingly difficult to compete in the current market conditions and we expect there is a tougher economic environment to come.

During wind-down the business will continue to be managed and administered by the existing directors and we will aim to conclude the wind-down within 12 months and ensure the safe return of funds.

We have provided detailed information below why we have taken this decision and how it affects our lender customers.

We would like to thank all of our lenders for their support over the past few years. We made a commitment to lenders to provide a service and we would like to reassure lenders that that commitment will continue until the wind-down has been completed.

We have not been able to make MoneyThing a success. We will however aim to exit the market quietly with minimum disruption to our customers and the industry as a whole.

 

This is the last of my P2P involvement. I'm not out of pocket overall but the whole project was, ultimately, a waste of my time.

Technically, alcohol is a solution..

'It [socialism] poses a growing threat, however unintentional, to the freedom of this country, for there is no freedom where the State totally controls the economy. Personal freedom and economic freedom are indivisible. You can’t have one without the other. You can’t lose one without losing the other.'

"There is no such thing as public money, there is only taxpayers' money"

Let not England forget her precedence of teaching nations how to live.

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Ash Corbett-Collins, 28, from Birmingham, who has banked with HSBC since he was 11 years old says he has already decided he cannot afford to move banks, despite knowing he will be hit by the new overdraft charges. Ash, who has a £1,750 overdraft limit, says he is trapped with the bank because he won’t get the same level of loan elsewhere and he is convinced the rest will all increase their charges in due course anyway.

“Since university [he graduated in 2012] I’ve used my overdraft each month to cover bills. That is everything from council tax to utilities, credit card, food and rent,” he explains. “I slipped into my overdraft during university and now, after my outgoings, I don’t have enough left over to replenish back into the black. Once you become reliant on your overdraft it can be difficult to get out of that cycle, even with being financially prudent.”

A snip from the independent article. The guy has spent nearly 10 years in his overdraft. 10 years and not able to clear £1750 "even with being financially prudent" is he having a laugh? This must be the university degree version of financially prudent. 

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1 hour ago, Roy said:

A dual income family of 5 can't survive without an overdraft?

I get your drift - but my son has 3 kids and the CHILD CARE alone is astronomical - - Besides Gran and Grandad saving - by helping 😉

Just highly fortunate in our family he has a very well paid job!

But so many out there ARE STRUGGLING!!

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59 minutes ago, KDave said:

"Annual income twenty pounds, annual expenditure nineteen ninety six, result happiness. Annual income twenty pounds, annual expenditure twenty pounds ought and six, result misery."

Dickens' Micawber principle

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20 minutes ago, 5huggy said:

I get your drift - but my son has 3 kids and the CHILD CARE alone is astronomical - - Besides Gran and Grandad saving - by helping 😉

Just highly fortunate in our family he has a very well paid job!

But so many out there ARE STRUGGLING!!

Is he a single father?

 

Technically, alcohol is a solution..

'It [socialism] poses a growing threat, however unintentional, to the freedom of this country, for there is no freedom where the State totally controls the economy. Personal freedom and economic freedom are indivisible. You can’t have one without the other. You can’t lose one without losing the other.'

"There is no such thing as public money, there is only taxpayers' money"

Let not England forget her precedence of teaching nations how to live.

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4 minutes ago, 5huggy said:

I get your drift - but my son has 3 kids and the CHILD CARE alone is astronomical - - Besides Gran and Grandad saving - by helping 😉

Just highly fortunate in our family he has a very well paid job!

But so many out there ARE STRUGGLING!!

Child care is high but someone must look after the children and we have minimum wages and strict numbers per carer in the UK (not free market). Back in the day it was the wife looking after the kids, people don't think about the equation in terms of money because she isn't making any by doing it, they only see the lost income from her not working, which is a mistake. Today realistically you need two full time wages to even think about raising kids unless you have the good fortune to be earning well. 

28 year old Jason above looks like he is priced out of ever continuing his line if he can't even meet ends meet now. What a terrible situation. 4 years my junior, no money, no house, no kids. This is normal these days? 

He needs to make a budget. Do absolutely nothing but feed himself, pay his bills and pay off the overdraft until its gone. Get on youtube and listen to richest man in babylon for some foundational personal financial literacy. Government are not helping either, half of Jason's rent will be the artificial market floor from paying someone else's housing benefit and his wages are low thanks to competition with 300,000 extra people a year. His council tax will be high because is paying for half the people on benefits in the town he lives in. Ect.

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Don't take it personally, you didn't provide all the facts 😊

I'm often in foreign climes too 😊

Technically, alcohol is a solution..

'It [socialism] poses a growing threat, however unintentional, to the freedom of this country, for there is no freedom where the State totally controls the economy. Personal freedom and economic freedom are indivisible. You can’t have one without the other. You can’t lose one without losing the other.'

"There is no such thing as public money, there is only taxpayers' money"

Let not England forget her precedence of teaching nations how to live.

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27 minutes ago, Roy said:

Don't take it personally, you didn't provide all the facts 😊

I'm often in foreign climes too 😊

NO Im not taking personally -  Seriously - MANY of my son's contemporaries are literally living with DEBT and dont see it as a problem -

The main reason thta I see - is low interest rates for far too long 

GAWD help em (as most have little or NO savings) as and WHEN interest rates do rise - they will be FUBAR ed

Here's another example of financial naivety - - - > >  >  NINE million Brits are "sleepwalking into retirement" and face a pension poverty unless they act soon.

From here  -- - -  https://www.thesun.co.uk/money/9766688/pension-time-bomb-million-brits-retirement/

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9 million with no retirement plans. Majority have no savings. Decades of the state taking care of everything from being out of work to retirement what did people expect would happen. Majority of people have learned this behaviour. Only the mugs have been taking responsibility for themselves for the past 20 years. 

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5 hours ago, Roy said:

P2P is in trouble too.

06/12/2019

Important Announcement: MoneyThing in orderly wind-down

Summary

We have taken the decision to place MoneyThing into orderly wind-down and we are no longer taking any new investments or new customers.

We have found it is increasingly difficult to compete in the current market conditions and we expect there is a tougher economic environment to come.

During wind-down the business will continue to be managed and administered by the existing directors and we will aim to conclude the wind-down within 12 months and ensure the safe return of funds.

We have provided detailed information below why we have taken this decision and how it affects our lender customers.

We would like to thank all of our lenders for their support over the past few years. We made a commitment to lenders to provide a service and we would like to reassure lenders that that commitment will continue until the wind-down has been completed.

We have not been able to make MoneyThing a success. We will however aim to exit the market quietly with minimum disruption to our customers and the industry as a whole.

 

This is the last of my P2P involvement. I'm not out of pocket overall but the whole project was, ultimately, a waste of my time.

 

apparently funding circle liquidity is now a nightmare.  defaults are up and selling loans on is now taking a very long time so much so they have changed their T&C's and are selling on part loans

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