Credit Crunch and You - Page 2

derekgas · 18-11-2008, 08:36

I also think it is a good idea for small business to do what we have just done anyway, just in case the crunch does bite, had a meeting of staff yesterday, reminded them of the possibility of this affecting us, and generally tightened the belt a little, we have some new 'rules' regarding use of vehicles (fuel), waste, and general spending (advertising and such), hopefully, this will aid in the event of a recession.

MUMMIBOO · 18-11-2008, 09:38

We certainly feel it as my mortgage has gone up by £100 per month! and my food bills seems be be growing.

citizenx · 18-11-2008, 09:54

I haven't felt the crunch myself yet. The company I work for has seen a slight decrease in orders. But apart from that everything's fine.

entwisi · 18-11-2008, 10:04

Quote:

Originally Posted by MUMMIBOO

We certainly feel it as my mortgage has gone up by £100 per month! and my food bills seems be be growing.

How has your mortgage gone up when teh interest rate has dropped so much?

Mine just dropped nearly 150 quid

jaysay · 18-11-2008, 10:08

Well as one or two have said its wall to wall on every news program and in the press as well, so the only way to avoid the bad news is watch Discovery Channel or Animal Planet, and buy the Beano and Dandy, sorted

MargaretR · 18-11-2008, 10:24

I haven't got mortgage or debt - I have juggled my nest egg about to get the best of poor savings interest rates.
Interest is income to me - so my income has dropped, whilst prices have risen.
Everyone is affected to some degree
Even the filthy rich are cleaner

MUMMIBOO · 18-11-2008, 11:01

Quote:

Originally Posted by entwisi

How has your mortgage gone up when teh interest rate has dropped so much?

Mine just dropped nearly 150 quid

Well ive not heard that mine has dropped yet, maybe its because my stupid mortgage is based on LIBOR i dont know

.

andrewb · 18-11-2008, 11:36

Indeed interest rates have dropped, but the way banks finance mortgages is by borrowing off each other, over 3 months, under the libor rate which has yet to see a significant fall.

entwisi · 18-11-2008, 12:28

There was a raft of new fixed rate deals published over the last couple of days so teh libor rate must be about to go

e.g. C&G offering 4.89 fixed for 7 years (995 arrangement, free valuation if done direct)

MargaretR · 18-11-2008, 12:43

Quote:

Originally Posted by entwisi

There was a raft of new fixed rate deals published over the last couple of days so teh libor rate must be about to go

e.g. C&G offering 4.89 fixed for 7 years (995 arrangement, free valuation if done direct)

I am well aware of fixed rate deals
I now deal with 3 banks (not Barclays) and get over 5%net at all 3 - two are fixed rate.
At times I feel like I am juggling pennies, but it does keep me occupied, and
every penny counts

entwisi · 18-11-2008, 12:59

Margaret, I was talking purely mortagges, I know you balance your money very well. OF course it also depends on your view of Risk. There are more risky and potentially profitable investments about. However as we progress along lifes path the further we get the less risk it is prudent to accept and that of course means lower returns.

e.g. a colleague at work decided to play with his overtime payment for one month and by simply buying and selling Barclays shares over a 2 month period turned in a 50% profit. Never big jumps etc but if he was up 15% he sold, waited till they dropped and bought again. Yes it was a risk but it was money he could afford to lose and wanted to play at it. Now he wishes he'd played with 2 months

magpie · 18-11-2008, 15:52

think there is a kinda lull, calm before the storm before Christmas... food down a little in price, fuel and so on:
Then come next year SMACK we will know about it.

jaysay · 18-11-2008, 17:15

Quote:

Originally Posted by magpie

think there is a kinda lull, calm before the storm before Christmas... food down a little in price, fuel and so on:
Then come next year SMACK we will know about it.

Well according to these financial boffins, inflation could well go into deficit next year, which is just as bad as being high, because everything just stagnates

Less · 18-11-2008, 17:26

Quote:

Originally Posted by jaysay

Well according to these financial boffins, inflation could well go into deficit next year, which is just as bad as being high, because everything just stagnates

If these guys that call themselves 'experts' were any good, how come this sudden recession caught them by surprise?

I don't think they know much more than the rest of us.