Loans everywhere!

LirW · 08-04-2018 10:20PM #1

Okay, so I just had a thought.
I was always quite fascinated how normal it is in Ireland that mortgages and finance plans are heavily advertised.
You see in on TV and on busses, on billboards and on the internet.

What stands out to me lately though is the aggressive advertisement of loans for weddings, you'd always have that as for a "small loan" when you see the young couple snuggling up to each other in a picturesque and dramatic landscape when suddenly a hefty ring is in the picture for a second.
Is it now the expected norm that couples are supposed to put themselves into debt for a wedding?

Planning a tiny wedding myself it would never even come to my mind to start my married life with a huge pile of debt but I come across it regularly that couples are unhappy with exploding costs and loans connected to it.

Help me to understand!

SeaFields · 08-04-2018 10:24PM

To be honest, I don't think I've ever seen an advert for a wedding loan

Pinch Flat · 08-04-2018 10:26PM

People are financial illiterate here. They’ll all be on cribbing to Joe Duffy after the next crash telling him how the banks forced them to take out the loans for the car / holiday apartment / overpriced house or whatever.

Wanderer78 · 08-04-2018 10:27PM

Banks sell debt!

RobbingBandit · 08-04-2018 10:31PM

Recession is over spend spend spend,recession beginning again cash for gold 2.0

LirW · 08-04-2018 10:37PM

SeaFields wrote: »

To be honest, I don't think I've ever seen an advert for a wedding loan

It's not advertised as wedding loan but the small "up to 40 grand" loans that advertise with the romantic couple, you get the idea.

Underground · 08-04-2018 10:38PM

The PCP market has grown tenfold in six years. People take out loans for Christmas shopping and holidays, and as you mentioned weddings.

These are all things I'd personally be inclined to put a bit of money away for instead of being burdened with debt and ultimately ending up more out of pocket than I otherwise would have been. A lot of people just want "things" now and to hell with the financial consequences.

On a side note, I see Ulster Bank are also set to issue mortgage backed securities, now what could possibly go wrong there?

waffleman · 08-04-2018 10:39PM

AIB's new ads make me want to vomit.

Kids kissing and hugging their parents because they took a loan to buy a treehouse.

eeguy · 08-04-2018 10:40PM

Most people are idiots when it comes to money. It seems to be common that people are paying car loans their whole lives, or buying ridiculous mortgages "just to get on the ladder"

The whole idea of saving for something seems to have disappeared.
Don't get into debt unless you really need to get into debt and you have a solid plan of getting out.

Nermal · 08-04-2018 10:40PM

By no means unique to Ireland. UK freesat ad breaks are composed entirely of payday loans, ambulance chasers & debt consolidation firms. I can't stop humming the 'have I got PPI' tune.

colm_mcm · 08-04-2018 10:42PM

Underground wrote: »

The PCP market has grown tenfold in six years. ?

It pretty much started from zero to be fair. I’d say tenfold is conservative, 100 times that at least.

meeeeh · 08-04-2018 10:47PM

I can understand car, house financing, I can even understand why people use bridging high interest loans. They are not a good idea but I can understand why people would do it.

However getting in debt unnecessarily just at the beginning of what will be for a lot of people most expensive part of their lives (house, kids) is ridiculous. Even if gifts cover the loan that money could be put to so much better use. I know weddings are expensive but I think that spend is often completely over the top and pointless.

LirW · 08-04-2018 11:03PM

eeguy wrote: »

Most people are idiots when it comes to money. It seems to be common that people are paying car loans their whole lives, or buying ridiculous mortgages "just to get on the ladder"

The whole idea of saving for something seems to have disappeared.
Don't get into debt unless you really need to get into debt and you have a solid plan of getting out.

Housing is a quite unavoidable debt if you want to own or like here in Ireland the rental market is so dysfunctional. There's also the very conservative picture still that renting is for the young and students and many still don't see it as a long-term option (if the rental market would allow it).

We're spending approx. 3,5k on our day, that's what we can afford, want afford and are comfortable with. I couldn't justify a big loan for it. It's still a huge amount of money!
We recently did our house up, it badly needed essential work and it was scary how easily we had access to a lot of money.

Bitches Be Trypsin · 08-04-2018 11:12PM

It's too easy to get a loan these days. Thankfully I've never been in debt and I'm finishing college next month with pretty much nothing, which is more than most of the class, many of whom are 20K or more in debt. Educational loans I agree with. Loans to go to festivals and holidays, debatable!

LirW · 08-04-2018 11:17PM

Bitches Be Trypsin wrote: »

It's too easy to get a loan these days. Thankfully I've never been in debt and I'm finishing college next month with pretty much nothing, which is more than most of the class, many of whom are 20K or more in debt. Educational loans I agree with. Loans to go to festivals and holidays, debatable!

My opinion on educational loans may differ from yours but it's funny that you see treehouse loans or boiler broken - loans everywhere but never anything for education and the connected cost to it (accommodation, books, fees).

CrankyHaus · 08-04-2018 11:19PM

LirW wrote: »

Housing is a quite unavoidable debt if you want to own or like here in Ireland the rental market is so dysfunctional. There's also the very conservative picture still that renting is for the young and students and many still don't see it as a long-term option (if the rental market would allow it).

We're spending approx. 3,5k on our day, that's what we can afford, want afford and are comfortable with. I couldn't justify a big loan for it. It's still a huge amount of money!
We recently did our house up, it badly needed essential work and it was scary how easily we had access to a lot of money.

Fair play for not getting suckered in. I couldn't agree more that frontloading a hefty amount of debt onto the beginning of a marriage is a great way to decrease the odds of it lasting.

Sadly marketing has normalised this. The same goes for people spending more than they can afford on new cars, whether through PCP or more traditional financing.

State policy hasn't helped, for example by displaying the car's year of sale on the licence plate to shame people into buying new when they have a perfectly good older car. We even switched to triple digit plates after car dealers had a few bad years.

Wanderer78 · 08-04-2018 11:19PM

Bitches Be Trypsin wrote:

It's too easy to get a loan these days. Thankfully I've never been in debt and I'm finishing college next month with pretty much nothing, which is more than most of the class, many of whom are 20K or more in debt. Educational loans I agree with. Loans to go to festivals and holidays, debatable!

Currently American student debt is at about 1.4 trillion, it's working out well for them!

For Forks Sake · 08-04-2018 11:20PM

eeguy wrote: »

Most people are idiots when it comes to money. It seems to be common that people are paying car loans their whole lives, or buying ridiculous mortgages "just to get on the ladder"
.

How many people do you reckon have the price (300k) of a house sitting in their back pocket? Ergo mortgages.

Bitches Be Trypsin · 08-04-2018 11:20PM

LirW wrote: »

My opinion on educational loans may differ from yours but it's funny that you see treehouse loans or boiler broken - loans everywhere but never anything for education and the connected cost to it (accommodation, books, fees).

I agree. I'd rather my parents took a loan out to support my education, than a loan to build me a treehouse.

listermint · 08-04-2018 11:22PM

eeguy wrote: »

Most people are idiots when it comes to money. It seems to be common that people are paying car loans their whole lives, or buying ridiculous mortgages "just to get on the ladder"

The whole idea of saving for something seems to have disappeared.
Don't get into debt unless you really need to get into debt and you have a solid plan of getting out.

Aye it totally gets my goat that most working families don't have 300k plus saved away to buy a house.

Totes idiots man can't believe it like. Soz

Wanderer78 · 08-04-2018 11:22PM

Bitches Be Trypsin wrote:

I agree. I'd rather my parents took a loan out to support my education, than a loan to build me a treehouse.

Fcuk college, I want a tree house

dxhound2005 · 08-04-2018 11:24PM

Despite the sweeping statements here that most people are idiots when it comes to money, and the rental market is broken, the actual evidence shows otherwise. The 2016 Census shows a significant increase in both the numbers able to rent, and the percentage of owner occupiers who are mortgage free.

http://www.cso.ie/en/releasesandpublications/ep/p-cp1hii/cp1hii/tr/

messy tessy · 08-04-2018 11:28PM

waffleman wrote: »

AIB's new ads make me want to vomit.

Kids kissing and hugging their parents because they took a loan to buy a treehouse.

So irritating.

And that 'how do you like the new car Evan?' ad makes me want to switch banks! :P

LirW · 08-04-2018 11:29PM

The car loan thing grinds my gears, I drive an 06 car, my insurance is due next month and since the car is 12 years old now it'll be a kick up the ar5e.
I went into a dealership a while ago and got a few finance plans just for the laughs, I tossed them at the end of the day.

Why is there even an NCT when insurance companies don't deem vehicles roadworthy when they're older than 14 years anyway?

Coffee Fulled Runner · 08-04-2018 11:29PM

When my wife and I went to the bank to get a small mortgage to buy our house last year they did their best to convince us to take out a bigger one which was 400% bigger then what we wanted and build instead of buying. I could imagine this happening in 2007 but not 2017

beechwood55 · 08-04-2018 11:30PM

CrankyHaus wrote: »

We even switched to triple digit plates after car dealers had a few bad years.

That was in 2013. And that was because people were superstitious about having a car with 13 as part of the registration. So 131 and 132 came about....

Franz Von Peppercorn · 08-04-2018 11:31PM

dxhound2005 wrote: »

Despite the sweeping statements here that most people are idiots when it comes to money, and the rental market is broken, the actual evidence shows otherwise. The 2016 Census shows a significant increase in both the numbers able to rent, and the percentage of owner occupiers who are mortgage free.

http://www.cso.ie/en/releasesandpublications/ep/p-cp1hii/cp1hii/tr/

That shows more renters because they couldn’t get loans.

Franz Von Peppercorn · 08-04-2018 11:33PM

Coffee Fulled Runner wrote: »

When my wife and I went to the bank to get a small mortgage to buy our house last year they did their best to convince us to take out a bigger one which was 400% bigger then what we wanted and build instead of buying. I could imagine this happening in 2007 but not 2017

Interesting. Two years before that and I had to jump through hoops to get a 70% LTV

Wanderer78 · 08-04-2018 11:33PM

Coffee Fulled Runner wrote:

When my wife and I went to the bank to get a small mortgage to buy our house last year they did their best to convince us to take out a bigger one which was 400% bigger then what we wanted and build instead of buying. I could imagine this happening in 2007 but not 2017

Again, banks sell debt, it's what they do, hence why we should own them

dxhound2005 · 08-04-2018 11:36PM

Franz Von Peppercorn wrote: »

That shows more renters because they couldn’t get loans.

Or they choose to rent. Either way they can afford to rent.

08-04-2018 11:38PM

I never see these ads but that's probably because I don't have tv channels and use adblock on the internet..

However I completely agree with you on how mental it is to get big loans for weddings etc. Someone I work with is still paying back money on a 30k wedding loan (!!) they took out about 7 years ago.

I personally have a bit of a fear of loans and try to avoid them as much as I can. I got a CU loan out when I bought my car but it only lasted a few months as I had savings anyway that I used to pay off the loan. Just thought it would be better to spread out the payments with a loan but I hated having money coming out of the bank every month so just paid it off.

I don't understand people who get cars on PCP. My 13 year old car does me fine! Hopefully the only other loan I'll have is my mortgage, whenever I get one that is.

I consider myself lucky that I have a good enough salary so that I can save money and avoid loans. But then again many of my colleagues have loans for silly things like big weddings and PCP and would earn similar money to myself so I dunno. Guess it depends on what you want to spend your money on and how good you manage your money...

The UK is crazy for financing. Must worse than here. From what I hear anyway and have experience of it through work..

Loans everywhere!

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