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Banks set spending limits for families in mortgage trouble

  • 23-10-2012 04:00PM
    #1
    Closed Accounts Posts: 3,753 ✭✭✭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?


«13456

Comments

  • Registered Users, Registered Users 2 Posts: 3,376 ✭✭✭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.


  • Closed Accounts Posts: 442 ✭✭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.


  • Posts: 25,611 ✭✭✭✭ [Deleted User]


    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.


  • Closed Accounts Posts: 5,455 ✭✭✭Where To


    Ten years too late.


  • Registered Users, Registered Users 2 Posts: 2,776 ✭✭✭Jhcx


    Sounds like it is something out of the soviet union.


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  • Registered Users, Registered Users 2 Posts: 9,459 ✭✭✭Chucken


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


  • Moderators, Arts Moderators Posts: 35,964 Mod ✭✭✭✭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.


  • Registered Users, Registered Users 2 Posts: 552 ✭✭✭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.


  • Closed Accounts Posts: 2,630 ✭✭✭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


  • Registered Users, Registered Users 2 Posts: 3,193 ✭✭✭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


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  • Registered Users, Registered Users 2 Posts: 16,124 ✭✭✭✭niallo27


    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.


  • Registered Users, Registered Users 2 Posts: 2,512 ✭✭✭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. :)


  • Closed Accounts Posts: 5,058 ✭✭✭Gurgle


    Shocking, banks trying to give people financial advice.

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


  • Banned (with Prison Access) Posts: 4,255 ✭✭✭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.


  • Registered Users, Registered Users 2 Posts: 3,012 ✭✭✭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....


  • Registered Users, Registered Users 2 Posts: 635 ✭✭✭SEANoftheDEAD


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


  • Closed Accounts Posts: 6,496 ✭✭✭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:


  • Registered Users, Registered Users 2 Posts: 2,000 ✭✭✭mitosis


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


  • Registered Users, Registered Users 2 Posts: 287 ✭✭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....


  • Registered Users, Registered Users 2 Posts: 8,779 ✭✭✭Carawaystick


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


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  • Posts: 25,611 ✭✭✭✭ [Deleted User]


    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?


  • Registered Users, Registered Users 2 Posts: 3,669 ✭✭✭who_me


    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.


  • Registered Users, Registered Users 2 Posts: 3 connellymarket


    Banks should keep their advice to themselves !!


  • Registered Users, Registered Users 2 Posts: 5,790 ✭✭✭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:


  • Moderators, Arts Moderators Posts: 35,964 Mod ✭✭✭✭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?


  • Closed Accounts Posts: 16,096 ✭✭✭✭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.


  • Registered Users, Registered Users 2 Posts: 16,124 ✭✭✭✭niallo27


    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.


  • Closed Accounts Posts: 6,496 ✭✭✭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.
    :D:pac::pac: :rolleyes:


  • Posts: 0 [Deleted User]


    "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.


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  • Closed Accounts Posts: 16,096 ✭✭✭✭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


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