Britons have least to spend on themselves in 17 years

[AB Asks]

Soaring bills, debt and the mortgage crisis has meant that families have less money to spend on themselves than at any time in the last 17 years. Over the last six years the cost of bills and payments that can't be avoided has soared, it has meant that left over money has been at its lowest since 1991. What do think? Is this something you are experiencing � less money to spend on yourself?

[Gromit]

I think you have answered your own question. Everybody is paying more for unavoidable bills, so everybody will have less money to spend on other things. This only becomes a problem, when you have no money to spend on other things.

I do not see how the mortgage crisis means I have less money to spend. Interest rates have been cut, so I am paying less in repayments.

Mortgages are briefly harder to get. Seeing as the 'crisis' was caused by selling mortgages to people who could not afford to repay them, then it might not be a bad thing.

[DrFilth]

the poor get poorer and the rich get richer, gee thanks alot mr brown

[nedflanders]

Gromit, people that have recently come off 2 year discounted mortgages are now finding that there are not many deals about so they are having to take deals that increase their monthly payments, even thought the rates have been cut 2/3? times this year. There are surprisingly quite a lot of these people now paying a lot more than 6 months ago.

[nedflanders]

http://news.bbc.co.uk/1/hi/business/7329151.st m

[Gromit]

nedflanders

People on discounted mortgages who know that their agreed period is up, should not be surprised when their payments go up. There are several different types of mortgage, and if people have bought the wrong one, that is their fault not Gordon Browns.

[nedflanders]

Gromit, in the past you could just jump from one 2-year deal to another and not have to worry about your payments going up. No one seen the credit crunch coming, not even the financial experts, so i would say its very harsh to be critical of people whose mortgage deal is due to end and now are facing increased payments.

[ludwig]

Gromit, who said any of this was Gordon Brown's fault? The question is about whether people have less disposable income than they did. The thing about coming off fixed rate mortgages is a contributory factor, irrespective of whose fault it is.

[jake-the-peg]

I don't see a link to this story

It's the Ed so I suspect the Mail.

You have to be careful because it's easy to distort this sort of statistic by what you define as disposable (eg is money spent on a car disposable or essential?)

However I suspect the largest chunk of this is due to the massive inflation in house prices. I suspect that people are probably spending more money on paying their mortgages than they were.

Of course this is a double edged sword because the same effect has been increasing some people's spending power as they fund purchase from the rise in value of their houses.

The devil's in the detail!

[Gromit]

http://www.dailymail.co.uk/pages/live/articles /news/news.html?in_article_id=564454&in_page_i d=1770&ct=5

[Jillius]

Only think that hasn't increased are our wages :-(
God knows how the next generation will ever be able to afford to live. I worry for my kids.

[Jillius]

sorry, that should have said thing

[RevFunk]

Lets go back to the late 80's with 10 inflation and 15% interest rates.....

If people get caught out when their discounted mortgage goes up it's their fault and no-one elses. When I got my mortgage I got several permatations of what a 1% increase would mean a 3% etc etc. It's not rocket science lol

[Gromit]

In 2007, wages rose nationally by 3.3%.

[Jillius]

yeah, but then they take more from you in tax

[RevFunk]

Simple answer is to work and not declare it.

Not that I would of course....

[mccfluff]

i have to work two jobs otherwise i wouldn't be able to pay my bills, the second I don't declare, bollox to working a second job and having to pay 25% tax on it

[Gromit]

Unless you were paying the 10% rate, they have lowered the tax rate from 22% to 20%.

[jake-the-peg]

Ah here we go

They are basing it on some outfit called "Capital Economics" who are a consultancy who've been established since 1999!

Only listed member of staff is Roger Bootle a consultant to the Tory party prior to 1997

and wait for it - the Daily Mail's own in house retail price index

Like I say the devil's in the detail!

[DarkMajes71c]

yes im constantly skint... must find less things to buy :o(