The Credit Crunch - have you felt it?

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maven
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The Credit Crunch - have you felt it?

Post by maven » Wed Sep 17, 2008 10:21 pm

Well, its making headlines, but I'm curious how much this is affecting real people.

For me, the value of the car I am selling has dropped several hundred pounds, and my shares which cost £5K six to eight years ago are now worth £300. The price of fuel for the house and the car has risen massively, and I think food has risen by about 20% over the last year or so. Houses in the area are static or falling in price, but not really selling either way.

My salary feels okay at the moment, having risen by NHS increments and cost of living adjustments, but it does feel like we are in a precarious financial climate at the moment.

Are you feeling the crunch?
Maven.

Wise men talk because they have something to say, fools because they have to say something - Plato
The fool thinks himself to be wise, but the wise man knows himself to be a fool - Shakespeare

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noodle
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Post by noodle » Thu Sep 18, 2008 9:58 am

For me personally, I have noticed the difference of the weekly shop go up quite a bit, but definitely utility bills and petrol have gone up an awful lot.

I have noticed a lot of changes around that don't really affect me personally at the moment though. I agree house prices have fallen rapidly, and there are empty houses around that people want to buy but the bank just won't give them a mortgage. I think that house prices did need to come down, but I do feel really sorry for the people who really stretched themselves to buy when they were at their highest.

In addition to this, I have also noticed a few smaller shops close down, and also quite a few bars ( although I'm not sure if this is more related to the smoking ban). There still seem to be plenty of people out spending on a Saturday though!

I also think there is a big difference with the amount of jobs. I know (non psychology) people who have got more than enough experience for the jobs that they are applying for, that have to apply for hundreds before they get an interview. Pretty hard on the new graduates especially,there are admin assistant jobs on the reed website and temp ones have got about 200 applicants! I was trying to get a temporary or part time retail job for some extra cash as it is usually quicker because there is no CRB, I have about 6 years experience (part time) and I wasn't even getting interviews (so I gave up! :lol: )

astra
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Post by astra » Thu Sep 18, 2008 10:18 am

Definitely feeling it! Have switched from regular Sainsburys to Asda for groceries due to massive cost difference. Are trying to sell our gas guzzling MPV as we can't afford the amount of diesel it goes through, but nobody wants it. We are building an extension and will need to remortgage soon to cover the cost but are anxious we won't be able to find a mortgage when our fixed rate runs out in Jan. I never imagined that a Deputy Head Teacher and Clinical Psychologist couple could be facing financial difficulties! I know it's all relative and we do have an expensive house and two big cars. I feel very sorry for people in lower paid jobs where it will be harder to see where savings can be made.

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chixta
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Post by chixta » Thu Sep 18, 2008 11:07 am

Yeah, its kinda acting in our favour at the mo as it means my mum cant sell the house (she doesnt really want to sell it), so not such a bad thing in that respect!

However, cost of petrol - bah!! I'm walking everywhere now!! And also our mortgage has shot up by £100 per month!!! :shock: And I've become pretty much vegetarian cause I cant afford to eat meat, and I shop at Netto now! :evil:

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Post by parsnip » Thu Sep 18, 2008 11:24 am

Just to add a students perspective I'm definately feeling the credit crunch! I spent the whole summer trying to find a job to clear my overdraft, but with no luck :( I couldn't even get a job temping in an office or in a bar, despite having plenty of experience, because people cant afford to take on more staff.
Also the student loan company have put the interest rate up on my loan 'in line with inflation', but haven't increased the loan amount in line with inflation so I'll be a lot worse off this year than the past 2 years :evil:
I'm going into my final year but am trying to find a job just so I can afford to eat & pay my bills, as I dont qualify for a grant or bursary.

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katyboo
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Post by katyboo » Thu Sep 18, 2008 12:02 pm

definately feeling it. We were v lucky to get a fixed rate 5 year mortgage deal last year when we bought, so although the value of our house has fallen there should be time for it to recover by the time our fixed rate is up. There are houses near us that people are now puttign up for rental because they can't sell them. I wish we were buying now as it really is a buyers market- but i think it would be so much harder gettign a good mortgage.
I'm finding food shopping is way more expensive- we are alternating tesco with morrisons now as it's cheaper adn as it has less to choose from i am lsee tempted to buy on a whim when i see stuff not on our shopping list!
my partner has recently been moved from permenant night shifts to day and has had a huge drop in salary too- its really crap ATM for loads of people.

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Syd
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Post by Syd » Thu Sep 18, 2008 12:39 pm

Hell yes I'm feeling it and no doubt if it continues will be hit hard when our 3 year fixed mortagage ends early next year. Time will tell.

Part of me is really annoyed about it all and then the other part thinks that this will be a good learning experience for our credit generation, where impulsive buying and credit cars have always been my problem in particular. It has made me think alot harder about whether I really NEED or WANT something, and to shop around. I tell you ASDA, Netto and Lidl are my favourite places right now. Before the credit crunch it used to be debenhams and dune. How times have changed!!!

vars
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Post by vars » Thu Sep 18, 2008 1:12 pm

Yes, I commute 30 miles to work in the morning adn 30 miles back at night so using a lot of petrol, also feel more stressed about temp contracts than before as saving up for when I'm between jobs is becoming difficult.

To be honest I've not noticed food go up much but definitely petrol! We bought our flat last August before the credit crunch really took hold and we paid more than I think we should of and now it's gone down in value so likely to be in negative equity! :shock:

Hopefully things will start to look up soon!!!

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Spatch
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Crunch time

Post by Spatch » Thu Sep 18, 2008 1:36 pm

Even though I will be homeless and jobless at the end of next month, it feels like it will be somehow okay. I guess the lack of debt, no mortgage, no kids, modest savings, and our complete flexibility means we can scale back if we need to. My car has a tiny engine so although fuel has gone right up, its still affordable.

It also helps that my girlfriend and I are quite boring people, in that we dont go out on the town often, but instead are content to mess around the house playing Xbox, playfighting or sliding down the stairs. I write a lot which is also cheap entertainment.

I don't want to come across all smug or anything, but I guess it stems from my deep cynicism of consumerism and buying as a form of emotional regulation (having observed it in my parents). I also questioned the whole house buying /big wedding/fancy holiday thing the other trainees seemed to get caught up in.

The only thing I have really noticed is the price of chicken has risen dramatically, but I still really like it so I just pay up.

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Post by Mexie » Thu Sep 18, 2008 2:05 pm

I haven't noticed it at all yet, but I'm lucky in that I got a big pay increase a couple of years ago and have been pretty comfortable for the first time in my life, not being skint straight after payday. If I was on my old wage I imagine I'd be feeling it by now with the increase in petrol.

My mortgage is fixed for 4 more years on a good rate and we have a lot of leeway for house prices to fall before we're into negative equity. Not planning to move for a few years.

I don't buy bread, milk or eggs which seem to be the things people say have gone up loads, and I rarely buy meat so haven't noticed any difference in food prices.

We go out a lot, but it now tends to be only to the local pub then back to someone's house, costing only about £15 each. I think this is more to do with getting older, personally, but the nightlife trade really seems to be suffering in my town. Lots of bars are closing and Friday and Saturday nights which used to be absolutely rammed are now pretty quiet.

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Post by red_llamas » Thu Sep 18, 2008 3:52 pm

I might regret saying this, but actually no, I haven't noticed it that much.

I did notice moving from the North to the outskirts of London but that was about a year ago.

I hate paying so much for petrol but have a v small car, so it's ok really. I don't own property, I rent & my rent includes bills so I guess the landlord may be feeling it in terms of energy rises but he hasn't put the rent up (yet!)

I probably still go out as much as I ever did, and still shop as much as i ever did (not all that often) I guess I have always been careful with money & always like to have money in the bank so I would stop uneccesary spending way before I felt it was getting a problem.

Luckily I have just got a new job with equivalent pay but will be able to move somewhere with much cheaper living costs so that should help too.

Oh, the other thing is I hardly spend anything at all at supermarkets! I keep promising myself I will eat properly but what with meat getting more expensive I seem to manage to talk myself out of it :roll:

One day I'll grow up.......

Now for someone who owns a pub thats getting to be another story entirely.....

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Post by Kentucky_Freud_Chicken » Fri Sep 19, 2008 4:36 pm

My flatmatea and I just paid an estate agent (who must remain nameless for legal reasons) £3000 deposit and rent. We lost the flat through a contractual error and then the agency told us they couldn't pay us the money back as they were in heavy debt and facing possible bankrupcy. The only thing we could do was threaten them with a statuatory demand and winding up order and arrange for them to pay the maney back in monthly installments.

Aside from that I've switched to supermarket own brand stuff (apart from baked beans and ketchup, which have to be Heinz). I've also had to take the advice of an Indian colleague and cook dall by the bucketload using dried chickpeas and lentils bought by the sack from wholesalers, then freezing it. It's actually cheaper to eat at the hospital canteen then to cook for myself now! Oh I do miss my 'taste the difference' products!

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miriam
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Post by miriam » Fri Sep 19, 2008 5:08 pm

Kentucky_Freud_Chicken wrote:My flatmatea and I just paid an estate agent (who must remain nameless for legal reasons) £3000 deposit and rent. We lost the flat through a contractual error and then the agency told us they couldn't pay us the money back as they were in heavy debt and facing possible bankrupcy. The only thing we could do was threaten them with a statuatory demand and winding up order and arrange for them to pay the maney back in monthly installments.
That sounds terrible! I feel so sorry for you. Are they repaying you? Have they admitted the debt in writing?
Miriam

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astra
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Post by astra » Mon Sep 22, 2008 12:18 pm

That is really bad news KFC, hope you get your money back! I agree about the dhal - I make that from time to time anyway and freeze it in mealsize portions. Very yummy. We've cut down on meat but still buy it from our lovely local farm shop. We're jsut having more of the dhal type meals and less of the meaty dinners at the moment. Probably better for us anyway!!

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Post by Ruthie » Mon Sep 22, 2008 3:36 pm

I'm also upping my lentil intake and chickpea stew is becoming a big favourite in our house atm. Just a shame about the consequences.... :twisted:

Sorry, I just couldn't resist that :lol:

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