Banks set spending limits for families in mortgage trouble

davet82

http://www.independent.ie/business/personal-finance/latest-news/banks-despicable-for-setting-limits-on-family-spending-3264775.html

Bankers are setting out spending limits to what a family can live on before agreeing deals on mortgages in trouble.

Some examples:

Banks are telling families:

- How much they can spend on teenagers.

- Setting limits on what a family in trouble with a mortgage can spend on health insurance at €166 a month.

- Limiting spending on mobile phones to €65 a month for two adults and two teenagers.

- Families with two adults and two teenagers are being told to restrict entertainment, including parties and Christmas, to €200 a month for everybody

Surely this can't be right to be dictated to what you can and cannot spend money on? I know alot of people will say its their own fault but this seems extreme and wrong to me.

Any thoughts?

Anyone

davet82 wrote: »

http://www.independent.ie/business/personal-finance/latest-news/banks-despicable-for-setting-limits-on-family-spending-3264775.html

Bankers are setting out spending limits to what a family can live on before agreeing deals on mortgages in trouble.

Some examples:



Surely this can't be right to be dictated to what you can and cannot spend money on? I know alot of people will say its their own fault but this seems extreme and wrong to me.

Any thoughts?

I dont have any issues with it, if people want a "deal" on their mortgage they have to change their lifestyles. Its impossible to monitor and enforce though.

Lambsbread

I don't like the idea of banks dictating how people should live their lives, however, people need to take responsibility for their obligations!

Don't see how the bank can enforce this in any case.

davet82

davet82 wrote: »

http://www.independent.ie/business/personal-finance/latest-news/banks-despicable-for-setting-limits-on-family-spending-3264775.html

Bankers are setting out spending limits to what a family can live on before agreeing deals on mortgages in trouble.

Some examples:



Surely this can't be right to be dictated to what you can and cannot spend money on? I know alot of people will say its their own fault but this seems extreme and wrong to me.

Any thoughts?

I have no problem with it except that people are such spastics that they need to be told such basic things.

Where To

Ten years too late.

Jhcx

Sounds like it is something out of the soviet union.

Chucken

Maybe if a budget had been worked out with people before the got their gigantic mortgages, it would have been a better idea.

pickarooney

Why do people spend such ludicrous amounts on mobile phones? Surely a fiver a month is more than enough for anyone, especially anyone in financial trouble.

sparksfly

Mortgage payers need to (but never will) band together into a well organised group and dictate to the bank how they will choose to "deal" with the situation, and what they will or will not accept.
70,000 customers for example, acting as an IFA like force, could pretty much set their own terms.

folan

budgeting help would be one thing. showing a person how to manage their finances etc. All good.

enforcing where the money goes though? cant see it working

Eircom_Sucks

sparksfly wrote: »

Mortgage payers need to (but never will) band together into a well organised group and dictate to the bank how they will choose to "deal" with the situation, and what they will or will not accept.
70,000 customers for example, acting as an IFA like force, could pretty much set their own terms.

+ 1

niallo27

pickarooney wrote: »

Why do people spend such ludicrous amounts on mobile phones? Surely a fiver a month is more than enough for anyone, especially anyone in financial trouble.

Fiver a month is about 16 cent a day which means you could make a one min call a day off peaks or send 1 text a day.

Ellis Dee

Jhcx wrote: »

Sounds like it is something out of the soviet union.

The difference being that in the Soviet Union people were not allowed - much less encouraged - to borrow many multiples of their annual income for any reason, least of all to have a roof over their head. :rolleyes:

They did not need to, either, because everyone lived in State-owned rented accommodation for which they paid a nominal rent.

Gurgle

Shocking, banks trying to give people financial advice.

"Live cheaper in order to meet your commitments."
Truly despicable.

Yawns

sparksfly wrote: »

Mortgage payers need to (but never will) band together into a well organised group and dictate to the bank how they will choose to "deal" with the situation, and what they will or will not accept.
70,000 customers for example, acting as an IFA like force, could pretty much set their own terms.

How would you see that working out so. A flat refusal to pay anything at all and stay in the homes? I hate the idea of the banks dictating to people in any way, shape or form but the simple fact is that if there is families with mortgage problems that are out there spending €65 on mobile bills and the rest then clearly it's not just the banks at fault. People were and still are too stupid to be trusted to do anything by themselves.

I know of a couple who are currently unemployed. One of them will be getting christmas work and the other maybe too. They are hoping to get on HP a new car, a new 50" tv and want to have a second child. If one of them gets kept on as permanent staff, they want to try get a mortgage. Their parents think it's great. People are ****ing morons.

BizzyC

Have no problem with it at all.

Makes sense that someone who's having trouble paying their mortgage should have to cut back on non-essentials to do so.

This just makes sure they cant complain about being short while dishing out on the iPhone5 cause the 4S is out of date....

SEANoftheDEAD

Why don't the banks just sign a deal with MABS or something for accounts that are struggling... get them to budget...

Boombastic

I can't afford my mortgage, I can't afford to eat, so now I'm just off to the shop to spend €5000 on skylander cards :pac:

mitosis

If they can't manage their own finances, who better than the bank to do it for you...............:rolleyes:

Mellio

This is a good idea but as suggested above why were the banks not doing this in the so called good times.

Well I tell you why because they dont and never will give a f*ck whether people can afford it or not really, why because when the **** hits the fan the banks will pass on there over burdened books to the government and in turn to the general public so why would they really care about lending practices. they will jsut start again, get re-capitalised by the government and go happily on there way, and start again growing huge profits of interest.

This whole exercise really is just a way of trying to show there interested in people who are struggling with there mortgages to show our inadequate government there doing there bit for society.

Too little too late if you ask me, I think all people should do a two week course setting up a budget for themselves and do a worse case scenario on what thewy would be left with if they decide to have kids, if one person loses there job e.t.c. this shjould be the way going forward....

Carawaystick

Because the banks have managed their own finances so well these last few years in Ireland.....

Mellio

Mellio wrote: »

This is a good idea but as suggested above why were the banks not doing this in the so called good times.

Because fewer people were struggling to make payments?

who_me

Carawaystick wrote: »

Because the banks have managed their own finances so well these last few years in Ireland.....

Exactly this. The irony of banks giving financial advice to anyone these days is laughable. It would have been nice if they'd shown some of that fiscal prudence themselves over the last 10/15 years.

connellymarket

Banks should keep their advice to themselves !!

up for anything

Families with two adults and two teenagers are being told to restrict entertainment, including parties and Christmas, to €200 a month for everybody.

This made me leak laugh. €200 a month - are they rich folks? :eek: The only entertainment I can afford for myself and four kids is Sky and even at that it's pushing it. :rolleyes:

pickarooney

niallo27 wrote: »

Fiver a month is about 16 cent a day which means you could make a one min call a day off peaks or send 1 text a day.

Yeah, exactly, who needs to make calls every day?

the groutch

if it stops people who supposedly can't afford their mortgages from living like it's still 2006, then I'm all for it.

niallo27

the groutch wrote: »

if it stops people who supposedly can't afford their mortgages from living like it's still 2006, then I'm all for it.

So people should leave the rest of their lives having **** all just so can they pay off their mortgage, what kind of life is that.

Boombastic

niallo27 wrote: »

So people should leave the rest of their lives having **** all just so can they pay off their mortgage, what kind of live is that.

:pac::pac: :rolleyes:

"Here's your spending limit per month, after what you owe us, go do what you like with that".

That I have no problem with.
Dictating how much is to be allocated to what is a step too far.

the groutch

niallo27 wrote: »

So people should leave the rest of their lives having **** all just so can they pay off their mortgage, what kind of life is that.

it's called facing up to your legal responsibilities

niallo27

the groutch wrote: »

it's called facing up to your legal responsibilities

What responsibiltys are the banks taking in all this though, would you really pay out most of your wages every month just to keep the banks happy, I'm taking about people with modest wages here with huge mortgages not people who are trying to advantage of the system.

sparksfly

sparksfly wrote: »

Mortgage payers need to (but never will) band together into a well organised group and dictate to the bank how they will choose to "deal" with the situation, and what they will or will not accept.
70,000 customers for example, acting as an IFA like force, could pretty much set their own terms.

The flaw within goes thusly: Why would people who are happy paying their mortgage go out onto the streets to effectively raise what they are currently paying for someone else's unwillingness to budget?

Son Of A Vidic

Anyone wrote: »

I dont have any issues with it, if people want a "deal" on their mortgage they have to change their lifestyles. Its impossible to monitor and enforce though.

True, but it would be equally nice to put some restrictions on **** Bankers lifestyles. Especially since we own them and are paying for their ineptitude.

Chucken

niallo27 wrote: »

What responsibiltys are the banks taking in all this though, would you really pay out most of your wages every month just to keep the banks happy, I'm taking about people with modest wages here with huge mortgages not people who are trying to advantage of the system.

With their modest wages they could have got a modest mortgage!

People borrowed way beyond their means so tough s**t now if they have to grow up and live on a budget...like real people!

Yawns

Corvus Maximus wrote: »

True, but it would be equally nice to put some restrictions on **** Bankers lifestyles. Especially since we own them and are paying for their ineptitude.

Jesus we own bankers now? I know banks were bailed by tax payers but I didn't realise we went as far to buy a banker. Look the reality is that some people need to be told to cop on with what they are spending. There's far too many people crying about mortgages whilst wanting to keep up with the Jones next door for lifestyle choices.

Maybe a certain garda sergeant needs to be told to set a budget too.

niallo27

Chucken wrote: »

With their modest wages they could have got a modest mortgage!

People borrowed way beyond their means so tough s**t now if they have to grow up and live on a budget...like real people!

People make mistakes, a hell of a lot of people did, the banks should also take responibilty for giving loans to people who clearly could not afford it, you could also say tough **** for the banks for not regulating their loan book correctly.

TURRICAN

You only get one life and no way will the bank tell me how to run it!

Chucken

niallo27 wrote: »

People make mistakes, a hell of a lot of people did, the banks should also take responibilty for giving loans to people who clearly could not afford it, you could also say tough **** for the banks for not regulating their loan book correctly.

It didnt take a genius to figure out that if people took out 120% mortgages, they were eventually going to land in hot water.

I'm sorry for people, I really am, but nobody forced them to get into so much debt. If they had learned to budget before they applied for all the money, maybe things would have turned out differently.

GarIT

pickarooney wrote: »

Yeah, exactly, who needs to make calls every day?

Someone with a life? I send about 400 texts on an average day, what else would I do during lectures?

I couldn't survive on €5 a day :L

Son Of A Vidic

Yawns wrote: »

Jesus we own bankers now?

Why are you talking to Jesus?

Not to worry though, I'm sure there's medication for that.

niallo27

Chucken wrote: »

It didnt take a genius to figure out that if people took out 120% mortgages, they were eventually going to land in hot water.

I'm sorry for people, I really am, but nobody forced them to get into so much debt. If they had learned to budget before they applied for all the money, maybe things would have turned out differently.

Yes but could you not say the exact same thing about the banks, the geniuses working in these banks had to have to know people could not afford these huge mortgages.

SEPT 23 1989

TURRICAN wrote: »

You only get one life and no way will the bank tell me how to run it!

This is the attitude people are now starting to adopt with the banks

and it scares them

niallo27

SEPT 23 1989 wrote: »

This is the attitude people are now starting to adopt with the banks

and it scares them

Why though, they ****ed us over, what did they expect.

Guy:Incognito

Carawaystick wrote: »

Because the banks have managed their own finances so well these last few years in Ireland.....

Their finances would be grand if people paid them back the money they owe..........

Pottler

Guy:Incognito wrote: »

Their finances would be grand if people paid them back the money they owe..........

Bull. Their finances are so fecked, they make a single mother on the dole with a 550k mortgage look like a canny investor. If they had not been bailed out their doors would have shut and they'd be buried. Easy for Banks to shout about "responsibility" when everyone else is responsible for their cock-ups. Muppets in suits, nothing more, nothing less. Idiots who p1ssed away their profits and buried themselves in debt and now whinge about ordinary people who cannot afford the loans they should never have been given in the first place. My attitude to them would be- go an shyte. BTW, a banker, questioned about a €980 million write-off on a loan recently, said they had "bigger issues to deal with than such a small sum". Okey dokey, so write off a load of mortgages then, seeing as you have bigger fish to fry.

sparksfly

Gurgle wrote: »

Shocking, banks trying to give people financial advice.

"Live cheaper in order to meet your commitments."
Truly despicable.

Its not shocking or despicable, its an extremely funny concept.
The guys who ran highly profitable institutions into the ground are now giving financial advice.
Its like taking advice on childcare from Gary Glitter.

tan11ie

Oh the sheep of Ireland :pac:

Gauss

I think it's funny how people always seek to blame someone else.

No one made you take out half a million loan to buy a shoebox, if these people actually thought for themselves rather than being lemmings they wouldn't be in such difficulty.

Wabbit Ears

What the banks did or did not do is completly irrelevent in the actual real world we live in, if you goto your mortgage provider and say you cannot afford to pay back your loan they can and will insist its a "can't" and not a "won't". If you're spending on mobile phone bills above the odd call, xbox live subscriptions, eating out and so on and so forth you're a won't, not a can't.

The King of Moo

Banks are telling families:

- How much they can spend on teenagers.

- Setting limits on what a family in trouble with a mortgage can spend on health insurance at €166 a month.

- Limiting spending on mobile phones to €65 a month for two adults and two teenagers.

- Families with two adults and two teenagers are being told to restrict entertainment, including parties and Christmas, to €200 a month for everybody

"Sorry darling, it looks like we're going to have to make do with a second-hand teenager this year..."