Australia's high personal debt

[basilio]

If you havn't heard of it The Cheapskates Club is a great source of ideas to live well on less.
https://www.cheapskatesclub.net/

https://www.cheapskatesclub.net/300-a-month-food-challenge.html

 

[Value Collector]

Lets pick a few at random.
1) Fashion. Buying and changing clothes, cosmetics, cars, toys whatever on an endless basis.
2) Technology . The relentless changes in phones, computers, electronic gadgets.
3) Cars. Another relentless drive of consumption with change for changes sake and delibrate construction of excessive maintenance costs to keep up profits and encourage the purchase of new cars
4) Renovations. New kitchens and bathrooms every 10 years (or less) whether you need them or not.
5) Hyper promotion of all legal drugs. Sugar, grog, gambling, chocolate, smoking, a million treats.
6) Arms industry. Trillions of dollars spent on the most expensive ways to destroy the worlds population many times over.

I can assure you, I consumed all of those things even in my hyper frugal years

 

[Value Collector]

Rumpy and VC, IMO you are both saying the same thing, just looking down the pipe from different ends.

You can be frugal and spend your money when you're older, or you can spend your money now and keep the economy ticking over.
The only difference is the one who spends his money now, has to be funded from the tax base later, the frugal one never has to be funded.

exactly, and with a population of 24 million all at different stages of life, the pipeline will be full at all stages.

 

[Value Collector]

Good point.

Might put off the obesity crisis untill middle age too.

This is what awaits a nation that over consumes, and fails to invest.

Is it any wonder Chinese money is buying up Australias assets.

As I said we would all be debt slaves shopping at the company store if we all went into debt to "Boost the economy", I am sure the economy would do fine for a while, but it wouldn't be Aussie Owned.

 

[SirRumpole]

Rumpy and VC, IMO you are both saying the same thing, just looking down the pipe from different ends.

You can be frugal and spend your money when you're older, or you can spend your money now and keep the economy ticking over.
The only difference is the one who spends his money now, has to be funded from the tax base later, the frugal one never has to be funded.

Well, I can see VC's point and I think people should be more thrifty when they are younger. The big problem imo is the easy availability of credit, credit cards did not exist when I was a kid so people had to live within their means , even if it meant blowing their spare cash on beer and fags.

The banks are once again taking advantage of the stupid and greedy and I can see that there may need to be some regulation on credit card limits, as anti free market as that is.

 

[Humid]

Most of the Beer and spirts drank in Australia is foreign owed

What isn’t besides the service industry which survives on consumption

 

[SirRumpole]

Taking 17 years to pay off a $2,000 credit card debt.

http://www.abc.net.au/news/2018-07-05/chart-of-the-day-credit-card-debt/9940612

 

[sptrawler]

Well, I can see VC's point and I think people should be more thrifty when they are younger. The big problem imo is the easy availability of credit, credit cards did not exist when I was a kid so people had to live within their means , even if it meant blowing their spare cash on beer and fags.

The banks are once again taking advantage of the stupid and greedy and I can see that there may need to be some regulation on credit card limits, as anti free market as that is.

I agree, the other thing is they need to make the pension sustainable, not just a tax grab and scramble to fund it.
As technology etc takes more jobs, the amount of welfare/pension is going to increase exponentially, no one is talking about how to fund it. Both sides are in the wrong on this.

They probably know how much it is going to cost, maybe the super surcharge after a certain date, should be directed into a pension future fund.
Then if people want a better retirement they buy extra, instead of just putting the surcharge up to 12% and giving it to fund managers?
Who knows, but something needs to be done, it is the elephant in the room, and they know it.
All they are doing, is Fing, prancing around it.
Just my opinion.

 

[basilio]

I can assure you, I consumed all of those things even in my hyper frugal years

I wasn't suggesting we don't "do anything" except eat brown rice and water. I was suggesting that here is massive over consumption in these areas.

 

[sptrawler]

Taking 17 years to pay off a $2,000 credit card debt.

http://www.abc.net.au/news/2018-07-05/chart-of-the-day-credit-card-debt/9940612

The only people who should have a credit card, are those who don't need one.

The rest should have a debit card, if they can't afford to buy it, don't.

 

[SirRumpole]

The only people who should have a credit card, are those who don't need one.

The rest should have a debit card, if they can't afford to buy it, don't.

I tore my credit card up years ago and just have debit cards.

Not that I'm a big spender anyway, but the credit card just made spending too easy.

 

[Humid]

There ok if you pay them off in full every cycle I used to pay my quarterly bas with Amex and get some serious qantas points and the card surcharge was tax deductible lol

 

[sptrawler]

There ok if you pay them off in full every cycle I used to pay my quarterly bas with Amex and get some serious qantas points and the card surcharge was tax deductible lol

If you can afford to pay it off every cycle, you really don't need one, it is just a convenience.
Which is the way it should be.

 

[Humid]

If you can afford to pay it off every cycle, you really don't need one, it is just a convenience.
Which is the way it should be.

I like flying business class without paying the premium

 

[Humid]

I like flying business class without paying the premium

It also shows you your spending patterns ......years ago it looked like an address book for metropolitan bottle shops

 

[Value Collector]

What isn’t besides the service industry which survives on consumption

And how does encouraging people to go into debt and spend to "stimulate the economy" help rectify the problem of losing Aussie owned businesses?

as I said it does nothing but make them look like more attractive investments to out siders, while the Aussie citizens are so swamped in debt and focusing on consumption that none of them are investing.

 

[Value Collector]

I wasn't suggesting we don't "do anything" except eat brown rice and water. I was suggesting that here is massive over consumption in these areas.

the economy adjusts, nothing is going to happen over night.

A wise lady called Mary Poppins once said - "Enough is as good as a feast", there is no need to waste the economy would do just fine without the waste.

 

[Value Collector]

Well, I can see VC's point and I think people should be more thrifty when they are younger.

starting younger puts the power of compounding on your side.

This example of two people show the young saver will have the greater power of consumption over his life.

the example is of a guy that saves from 19 till he turns 26 will beat a guy that saves from 27 - 65

 

[bellenuit]

Just to add some humour. Quotes from George Best, Northern Ireland and Manchester United footballer and notorious playboy in his time:

'I spent a lot of good money on drink, women and cars. The rest I just squandered'

'In 1969 I gave up women and alcohol - it was the worst 20 minutes of my life'

 

[Humid]

And how does encouraging people to go into debt and spend to "stimulate the economy" help rectify the problem of losing Aussie owned businesses?

as I said it does nothing but make them look like more attractive investments to out siders, while the Aussie citizens are so swamped in debt and focusing on consumption that none of them are investing.

What I’m saying if people don’t consume you will go into recession is how I see it
Remember the Labor handouts
My point was if everyone follows your previous lifestyle it won’t work....no jobs no money it’s the fact that not everyone does it so it works.
I can buy a house cheaper now than 5 years ago so how would my investment be looking if I did.
It’s just not being a tightarse that works