It's probably me but.....

<shock>

Bet you get paid tomorrow though!

 

it doesn't bother me in the slightest - it's just a way of managing
liquidity.

 

but it's no biggie, unless there's a *massive* crash in the housing
market.

don't see why - you're a long time dead.

 

nope - couple of weeks until pay-day.

Angie got paid today, though.

 

in message

How many Google users have *never* clicked on the Groups button? And of
those who have, how many meant to?

TBH I find Googling usenet is pretty handing at finding out about stuff
though not for taking a full and active part.

 

Fair enough. I guess it's because I may well be closer to packing it all in
than you are. I like the fact that I can tell my lot to sod off should I
wish, without risk to anything I own.

(I'm presuming that if you are totalling up accounts, you are including
ISA's/PEPs/savings?)

Ali

 

They'd need to be realisably worth a hell of a lot more than the debt burden
for me. See, having worked in "precarious" job for years, I've always gone
on the thing of being able to live if I lost my job. And not jeopardising
the roof over me head, and all that. I guess I remember the 80's rather too
well.

Absolutely. But that's a bit different from personal liability, eh?

Ali

 

Thanks for the solutions, yes I'm viewing via Google it seemed the
right thing to do. I love computer thingys, but I simply want a tool
that I can pick up and that reads my mind and does what I want rather
than what I ask it to do.

Still don't really understand why but do understand how to improve
things.

Thanks again.

Couldn't reply earlier, couldn't get the fucking thing to show the
thread, but that is to be corrected now.

Brian

 

*dingly *dingly *donk*

 

what "burden"

 

There had to be answer along those lines. I couldn't quite see the darsy
lifestyle funded on less than £100 for a week.

 

For me, personal debt is a burden. OMMV, as they say.

Business debt, as a limited company, is another matter.

But, here's the example: a friend, who to my mind was pretty over geared
anyhow. He had a house with a mortgage of about 70 percent of the then
equity, and a decent enough job. Job went tits up. By bad luck, property
market went pants - this was the 80's. He ended up in negative equity, no
job, no income and was unable to get anything close to his original income
for some considerable time. House was repossessed, he ended up with nothing.
Actually, worse than that: the so-called indemnity insurers on the property
chased him for years after. Not my idea of fun.

Ali

 

Brat.

No, but that's not what darsy said, unless I've misunderstood. If you trade
off everything - and you have truly realisable assets, with a proper spread,
then having a debt is manageable. If you have £2 million in assets, but they
have a component that could be quickly offset against the debt if that is
needed, then that can work. And of course, you have to look at the debt
cost. I'm assuming that this net debt of 350K includes savings and personal
pension funds, which may be an incorrect deduction.

I'm distinguishing between personal debt and business credit, based on
darsy's statement. Business credit - assuming a limited liability company,
rather than partnership or sole trader - is an entirely different risk.

Yep. Still far too high a ratio for my liking, although I know it is both
common and often unavoidable these days. I'd also ask where the pension
planning is, but that's none of my business.

Ali

 

Alison Hopkins says...

Similar story to mine. Fucking indemnity insurers[1] chased me too. I
couldn't understand how they could take a premium from someone against a
risk and then chase the insured when they've had to pay out. It's a
risk, and they took money from me and thousands of others to safeguard
themselves against that risk knowing they'd only have to pay a
proportion of it back to the mortgage companies. I told them to get
fucked in no uncertain terms and threw every subsequent letter from them
into the bin unopened.

[1] Liberty Life IIRC

--
Lozzo
Triumph Daytona 955i SE (Black with added black bits)
Suzuki Bandit 600S (Green with added shit bits)
Yamaha SR250 Delusion (It's "Special")
I'm a modern man, I don't mind buying tampons, but apparently they're
not a proper Valentine's present

 

I made the usual mistake of seeing things through my eyes. As I hardly
ever use a credit card I had genuinely forgotten that that was an option
- silly me.

For some, probably daft, reason I hadn't even thought darsy would have
or even need an overdraft facility. I have obviously been lulled into
believing that he earns so much money that he is literally rolling in
cash.

 

Ah, you look younger than that.

See other post. I saw this go deeply pear shaped on more than one occasion,
hence my caution. And my particular profession was always prone to
uncertainty.

And don't forget, I'm currently working in an area that is closely linked
with the fortunes of the property market. HIPs will have an impact. (Not
that I think London property will take a nose dive, I hasten to add.)

I have an extremely mixed and varied portfolio.

Ali

 

There were a hell of a lot like that, and it still goes on, I believe. As
you say, bastards.

Ali

 

I use cards for everything, but pay them off in full. One card gives cash
back, which is free money. The other gives BA miles, which gets me free club
class flights. I'm probably a credit card company's nightmare.

Ali

 

Ho ho!

Surely the 10K in the bank account is an asset - just a very liquid one?

Even if I had £2m in assets I really wouldn't want to be £350k in debt
in terms of my bank accounts. The real issue is whether part of the £2m
can be liquidated without an enormous risk to your well being / future
security. If the £2m was a property that he had assumed you'd sell to
fund your pension I certainly would not want a £350k call against it.
If part of the £2m worth of assets was effectively "spare" and
realisable then I'd agree that £350k in bank account debt wasn't a huge
issue. Similarly if I was about to be paid £500k I wouldn't care either.

I understand this but I do struggle to understand those people who run
their finances right to the edge or even go over the edge. I guess my
view is tainted because at one point I had no real savings, fairly large
credit card debts and struggled to get a mortgage. We've debated this
before so I'll just accept I've got a rather different view to those
who're happy to play the debt game.

 

That's *ding* number one. I do honestly believe that - subject to your
occupation, of course - you need to have assets that are liquid enough
quickly enough to live on for long enough till you find another source of
income. I also object to paying high interest rates on borrowing.

And that's number two. It's a choice: doesn't work for me, but as long as
it's an educated choice, then fine.

Ali