Recession, what Recession?

My friend and I visited Bicester Village this Saturday. Somehow recession seems to have missed the Village because we could not even get parked! After managing to find a space at Tesco car park nearby, we walked to the Centre to find the shops packed, long lines for the Tills, Cafes, changing rooms, etc, with the line outside 'Ralph Lauren!' going five folds. Yes you had to line up to even enter the shop. Whilst it is nice to see people actually walking around with bags of shopping and see some signs of economy turning around, I cannot help but think the worst because I happen to witness the worst when the festive season is over and phones start ringing with people who used all credit cards over limit and gone well over the overdraft limit and cannot pay their debts. Some in fear of losing their home or the husband/wife finding out the extent of debt! What I fail to understand is why do some people simply forget it all for Christmas and pretend that credit card fairy is simply going to take care of everything?? If a person hasn't got the money, then why put himself/ herself under the pressure and agony? With so many feeling the pressure of lack of money and employment, surely friends and family understand if some have to tighten up the purse strings.

Hi Stella

i know what you mean as I have seen plenty of people out Christmas shopping in spite of the credit crunch. I suspect it may be a case of wanting to escape the doom and gloom by splashing out at Xmas or feeling as if they have to cheer themselves up in some way, so what the hell, live now and pay later.  But there is a price to pay - literally.

And I imagine it is very difficult if you have children as they don't understand if money is tight and want all the shiny things being heavily advertised at the moment.  Plus they want what their friends have got so it must be hard as a parent not wanting your child to feel left out.  I am not a parent by the way when I say this but I have friends with children and they say these things.

I personally would not want to start the New Year with massive credit card debt so going for the 'cut your cloth according to your coat' philosophy.

Hi Jane

I sometimes do wonder if the country would be in so much debt if there were no TV adverts!

Have a great Christmas

I'm a parent of two young children and have limited money to spend on Christmas, despite me and my wife working our arses off. We all have limited money, it's up to us to work out what our limit is.

 It's not hard, or expensive to give a child a brilliant Christmas without spending a fortune.

 

Call me a dinosaur but I was brought up in an age where if you didn't have the cash, you saved up until you could pay for it.

Applies as much to countries as to people who all want things on the never, never.

Europe now faces a decade of austerity!

I love all the Xmas spirit etc. but not a fan of giving or receiving presents.  Bah humbug. 

Bicester Village has always been jam packed with shoppers at this time of year, no matter what the economic forecast and doom and gloom merchants have said about the current climate. I'm sure, as always, there are people flashing the plastic, but just because somewhere is busy, it doesn't always follow that everyone's overdoing it on the credit. For instance, this year my husband and I have spent thousands of pounds on stuff for the house, but it's all been money we've saved up and has come direct from our current accounts, not on credit cards. I'm sure we're not the only ones who have moved to more 'responsible' spending over the last couple of years.

Since our first child was born 6 years ago, we've never been in a position to splash the cash at Christmas (we made the choice to go down to one income so my wife could stay at home in the early years).

Do we regret it? Not a bit.  The last six years have been the most difficult financially, but when I see my daughter's peers kick off because they can't be taken anywhere without being bought something to keep them quiet...I'm glad in a strange way that we haven't been loaded!

I wouldn't change a thing (a little more money to help with bills perhaps!) but spending hundreds (or thousands) won't make your kids love you any more or less.

The most important gift to give your kids? Your time.

(Typed on sofa next to poorly 3yo watching Tots TV)

I'm with you Chris, my parents bought me up that way if you can't afford you do without.

I recall buying my first car, it was just as the cheaper insurance age limit was raised from 21 to 25. I was gutted I'd only saved enough for the quote before the age increase.

I was made to house my car for over 5 wks in my parents garage as they were not prepared to loan me the money.

I am now grateful for them doing that as I still have the same standards when dealing with money. I don;t believe in credit cards ONLY for emergencies when abroad . As I don;t want to be in debt!

That is why I love the cashback card introduced by my utility provider, The Utility Warehouse.  It is backed by mastercard but it is my money that I load onto it. So you can;t spend what you don;t have.  The bonus being is that everytime I use it I'm reducing by monthly bills by £30-£35.

Its scary how half the population will be still paying for Christmas 2011 come Christmas 2012.  My way ensures that January bills will heavily discounted and I'll have no debt!

Merry Christmas everyone!

As I said on twitter last week. I don't believe there is a recession. I blame the media for  flexing their muscles and doing their best to drive us all into a state of doom and gloom. If you reject the whole concept and embrace the many opportunities that present themselves, life suddenly seems a much better place to be. Because when you are positive and upbeat, people are naturally drawn to you.  Give it a try, so far so good for me and my business.

Vicky

Post Reply

I love this stuart.

When I think back to being young, I cant remember one of the presents/toys I received now.  Although I can cherish the times I spent with my grandparents on christmas day and love the items that have been passed down through the family.

 

 

Couldnt agree more.

 

Jane - so true!  It is always the memories that are priceless.  

As you say Stuart the most amazing gift to give your kids is your time and interest in what they do.  

Belinda, I would love to share your views about people acting more responsibly with their spending, but regretably they are not.  Partly this is to do with the day and age we live in, where everything is available fast and ready so people's false expectations are to have everything there and then.  I mean when was the last time we wrote letters or sent postcards?  Supermarket shopping is done on internet and we can even have it as an App on I Phone or I Pad to place our orders on the go.  So people and especially the young generation have the attitude of 'I want, I have', because they dont know any other world than the Fast World they are born into.

The other matter that is contributing to this crazy spending is lack of knowledge of the consequences of the individuals' actions.  Some people do not even know what an APR is!  They borrow money, take on credit cards but they dont read the small print and all they are interested in is what is the minimum payment they have to make each month.  They sign agreements for Buy Now Pay Later schemes just to get that kitchen or bathroom or furniture ready for Christmas when the family and friends visit but forget that they have to find the money in the years time and if not, they can end up having it as a loan with some silly rate of interest.  

Sorry, rambling on but I could write a true story each day on this Forum with what I see at work.

 

I'm not convinced that the speed at which we can do stuff now is necessarily the reasn for "I want I have"

I think the "I want I'm gonna have" mindset existed long before we got an iphone app for internet shopping!

Technology is a tool that make some stuff easier & quicker (and other stuff far too complicated but that's a different thread maybe) - for me it's made Christmas shopping this year pretty easy to plan do and budget for

I LOVE LOVE LOVE Christmas - I love giving gifts and I love the thought that others put into giving me gifts they know I will love.  I love seeing all my family, hosting parties, feeding people delicious food, drinking nice wine, going to Chrismas celebrations, buying a new dress for the occasion - I love everything about it!!

But I don't get into debt for it - I'm sure there are plenty of us that budget for Christmas, put some money aside, plan what to spend & stay within our means. 

 

Quite so!

Stella, I'm not denying that many people get into debt without thinking about the repercussions (and those vile '10 minute loans' type of daytime TV ads at a zillion APR don't help, I'm sure). But it's not right to make such sweeping statements about everyone. If you work in debt control / management, of course you're going to see the sticky edge of the wedge every day.

People getting into debt isn't a new phenomenon, and the last few years have made it harder for the formerly 'responsible borrower' to get credit as well - hence you've either had to suck it up and not have it, or save for it.  Yes, if you're so minded, you can pick up a phone, or go onto a website, and get some cash which you might not be able to pay back. But, twenty or thirty years ago, there was also the loan shark hanging around at your doorstep, more than willing to lend money to disadvantaged people who were then in fear of their possessions (and their kneecaps) when they realised they couldn't keep up the repayments.

Materialism isn't a new phenomenon either. Just because we're now goggling at giant TVs and holding our i-things, it doesn't mean we weren't wasting our cash (and other people's cash) on whacking great hi-fis, fancy cars and tons of presents for the kids at Christmas, twenty years ago.