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Never  known such  slow response to increase interest rates when inflation is running away.

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  • FairygirlFairygirl Posts: 55,117
    I had my first flat when those interest rates were in the mid teens. I wasn't earning very much either. I also needed a car to get to work as I didn't work sociable hours, so that was another expense.  I got a credit card purely for that reason. If anything went wrong with my car, I'd have been up s**t creek without any paddles.
    I only just had enough for food and my bills. Forget clothes or holidays or anything like that. Savings? No chance. 
    When I got married and we bought our first house, and first baby, I was terrified we wouldn't be able to afford our bills. The first winter we had temps like last winter- regular spells of minus ten etc. No double glazing at that stage either.  I had the heating on for an hour in the morning and an hour at midday, with a 6 month old baby. That was it until the evening. Food shopping was still made with careful choices. 
    I've budgeted my finances very carefully for my entire life. 
    It's a place where beautiful isn't enough of a word....



    I live in west central Scotland - not where that photo is...
  • Nanny BeachNanny Beach Posts: 8,719
    edited January 2022
    Same here Fairy, married life 1st husband,a couple of rooms in Tottenham,no bathroom. Then Islington,he was a Horologist,we had to live above the jewellers shop. No bathroom. A baby,no washing machine. I had a mangle. This was 1970
     We bought a caravan,which we lived in 5 years. Rural, neither drove. Sold that,it was deposit for 1st house. Kids shared bedrooms. Bought 2 bed maisonette. Turned lounge into 2 bedrooms. This was 1983, mortgage rate 12% 18 months later,it was 16% I had 4 jobs. Husband worked nights. When he worked days I switched to nights. A nursing home, hospital with crèche,agency and a cleaning job. Last House with him, re possession on divorce, emergency accomodation. Started again. Nights because no paying for childcare. I didn't go to bed after a night shift until my daughter went to nursery school at 4. We didn't have central heating  in our last house till the mid 2000s. We sold our house, bought an unmodernised 1930 cottage for cash,(although it went up at the contract stage 10k, had to get a high interest loan) taking 12 years to do it up as we could afford,not having central heating until the mid 2000s. So I don't feel a bit guilty. I worked damn hard for what I have. 
    .
  • It will be interesting to  see how the situation unfolds  this year.

    From 6th  April  2022 the national insurance is increasing, and this has to be  paid by employees and the employers. Hence, another possible increase on  goods & services.

    So this is Rishi Sunak's first blow. If you don't work, sit back and make yourself a nice mug of coffee  while you ponder what Sunak & Johnson may have in store.

    "The Bank’s monetary policy committee will make an announcement on Thursday following its two-day meeting, with expectations that the rate will rise from 0.25% to 0.5% in order to tame inflation".

    Now where's that Nescafe?

  • Same here Fairy, married life 1st husband,a couple of rooms in Tottenham,no bathroom. Then Islington,he was a Horologist,we had to live above the jewellers shop. No bathroom. A baby,no washing machine. I had a mangle. This was 1970
     
    .
    Interestingly or scarily (!) refering back to 1970 in 2022 is the same (if it was 1970) as refering back to 1918.
    £1 in 1970 is now worth £13 today...where as £1 in 1918 was only worth £3.67 in 1970. I Googled it as I find these kind of factiods quite amusing. 
  • @Chris-P-Bacon
    Tell us about when a penny could buy half a pound of cheese, 2 pints of milk, and loaf of bread and still go home with some change.  :)
  • Hostafan1Hostafan1 Posts: 34,889
    young codger said:
    @Chris-P-Bacon
    Tell us about when a penny could buy half a pound of cheese, 2 pints of milk, and loaf of bread and still go home with some change.  :)
    I often wonder , back in the day, when a shilling bought a lot of stuff. How much something like one housebrick cost?
    Devon.
  • punkdocpunkdoc Posts: 15,039
    The inexorable rise in the number of people using food banks tell us what is really happening with poverty in this country. The divide between rich and poor in the UK becomes ever starker, surely won't be long till we are comparable with some of the banana republics.
    How can you lie there and think of England
    When you don't even know who's in the team

    S.Yorkshire/Derbyshire border
  • raisingirlraisingirl Posts: 7,093
    edited January 2022
    punkdoc said:
    The divide between rich and poor in the UK becomes ever starker, surely won't be long till we are comparable with some of the banana republics.
    But that's what the country voted for - a deregulated, low tax economy, freed from the socialist constraints of the European project. It shouldn't come as a surprise @Hostafan1 that many people want to pursue this course, given the outcome of the plebiscite we recently had on exactly this point.

    The people who were for this course were generally the ones with money in the bank
    Gardening on the edge of Exmoor, in Devon

    “It's still magic even if you know how it's done.” 
  • Nanny BeachNanny Beach Posts: 8,719
    Of course I know some folk are even worse off. My 2sons on disability allowance have to budget carefully. The youngest only shopped in Sainsbury's,(that wasn't how he was brought up) he has an Aldi 5 minutes walk, now uses that. Oldest, now has a Lidl in his town. People priorities are different now days. I told all my kids, keep the roof over your head, thats number one. Having had unreliable 1st husband, wanted to get debt free as soon as possible.
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