Overdraft requirements for coming growing season.

Overdraft requirements will be

  • Higher

    Votes: 20 11.2%
  • Same

    Votes: 63 35.4%
  • Lower

    Votes: 18 10.1%
  • Minted do not need an overdraft

    Votes: 77 43.3%

  • Total voters
    178

fgc325j

Member
Blimey, that’s a shock

Do working families only live hand to mouth ?
Taking into account the number of ads on TV and the papers from payday loan companies,
and if you've ever watched all the financial advice programmes on the TV, then yes - all
the world is swimming in debt. The big question is when will the lenders wake up and
ask the question "what happens if interest rates start to go back up?".
 

Phil P

Member
Arable Farmer
Location
North West
Taking into account the number of ads on TV and the papers from payday loan companies,
and if you've ever watched all the financial advice programmes on the TV, then yes - all
the world is swimming in debt. The big question is when will the lenders wake up and
ask the question "what happens if interest rates start to go back up?".
Base rate is less than 1%, a lot of personal borrowing if closer to 7-8%+, so lenders are would still be making good money even if the base rate went up another 1% and they didn’t raises lending rates.
Besides, Would it better to make a little less money or bankrupt the person who owes you a large sum and get nothing?
 

teslacoils

Member
Location
Lincolnshire
Blimey, that’s a shock

Do working families only live hand to mouth ?
I think so. Several areas of my town rank highly in terms of deprivation. One ward is 24th out of 33,000 in England.

Lincolnshire is a big county. People are not mobile IE they don't have cars and there are no busses. There are not a lot of jobs that pay over minimum wage. So if mum has a couple of children, and dad works his 40 hours at £8.50, there is not going to be a lot left after the rent is paid etc.
 

glasshouse

Member
Location
lothians
Taking into account the number of ads on TV and the papers from payday loan companies,
and if you've ever watched all the financial advice programmes on the TV, then yes - all
the world is swimming in debt. The big question is when will the lenders wake up and
ask the question "what happens if interest rates start to go back up?".
That wont affect those lenders, rates are already sky high.
Britain is now divided into two parts, those who owned property before 2008 , and those who didnt.
Those who did, are either mortgage free or mostly paying a tiny mortgage if on a floating 1% or so over base , which most are.
Those who didnt own at that date now cannot fulfil the strict lending requirements of 3 times salary, are getting humped by runaway rents, cant save a deposit etc.
Gordon brown , the good labour man that he is opted to keep the rich getting richer, the ones who caused the banking crisis, while making the poorer sector of society foot the bill
 

Johnnyboxer

Member
Location
Yorkshire
Taking into account the number of ads on TV and the papers from payday loan companies,
and if you've ever watched all the financial advice programmes on the TV, then yes - all
the world is swimming in debt. The big question is when will the lenders wake up and
ask the question "what happens if interest rates start to go back up?".
Wheels will fall off if base rates go to 5%
 

teslacoils

Member
Location
Lincolnshire
Wheels will fall off if base rates go to 5%
For those with under £100 savings? No, it wouldn't make much difference I don't think.

I'd be more concerned that there is little to no productivity growth; that earnings keep rising despite this lack of growth; and there seems to be a realisation that the asset price boom fuelled by low interest rates etc can't keep filling the gap between national income and expenditure.

In that climate I see very little chance of rates going up five percent.
 

PSQ

Member
Arable Farmer
Location
Scottish Borders
The dangerous thing about an overdraft is that unlike a loan the overdraft facility can be withdrawn without notice, effectively bankrupting the borrower if they cant liquidate assets fast enough to meet the banks or their suppliers terms.

Do you think this sounds unlikely? It happened to many farmers in the south of Scotland after the succession of poor wet harvests in the late 1980's, with land and assets being sold at 'fire sale' prices in an often vain attempt to stay afloat.
Your bank might have a friendly face, but when the sh!t hits the fan they wont hesitate to ask for their pound of flesh...

I don't have an overdraft, and I don't trust my bank anymore than I would trust a pit of snakes.
 
The dangerous thing about an overdraft is that unlike a loan the overdraft facility can be withdrawn without notice, effectively bankrupting the borrower if they cant liquidate assets fast enough to meet the banks or their suppliers terms.

Do you think this sounds unlikely? It happened to many farmers in the south of Scotland after the succession of poor wet harvests in the late 1980's, with land and assets being sold at 'fire sale' prices in an often vain attempt to stay afloat.
Your bank might have a friendly face, but when the sh!t hits the fan they wont hesitate to ask for their pound of flesh...

I don't have an overdraft, and I don't trust my bank anymore than I would trust a pit of snakes.
Great post that & ive lost most of the faith in the one weve been with for over 50years poss far too long
Thinking of moving is it much hassle? anyone care to comment?
 
A lot of wheels will fall off at 3%, if it got to 5% there would be a monumental car crash.
It’s strange but I can’t ever see interest rates going back over 2% in my lifetime
Still remember it in the teens late 80's wasnt it & wondered how on earth we survived, OD 3 times higher than what its at now back then
lots of family hassles with far too many chiefs. not the case now thankfully.
If we owned the place id never need an OD ever again thats the difference being a Tenant afaik anyways
 

Phil P

Member
Arable Farmer
Location
North West
Great post that & ive lost most of the faith in the one weve been with for over 50years poss far too long
Thinking of moving is it much hassle? anyone care to comment?
We’re actually just looking at moving at the moment, if you’ve no borrowing then it’s pretty straight forward (so they’re saying). We have some money borrowed as we bought land last year, the deal We’ve been offered to move just can’t be ignored but will incur costs. We’ve been with the same bank since my great grandfather so it’s not something we’re taking likely and you’d think they’d want to keep our business? It’s not the impression I’m been given though and I’ll be honest I’m not just happy with a few other things the bank has done!
 

Still Farming

Member
Livestock Farmer
Location
Glamorgan Wales
The interest rate on my mortgage on my first flat hit over 18% in the 90's . I nearly bailed out but at the time I was single and working obscene amounts of hours for a contractor so was able to keep paying .
That was cheap then.
If it went up to 7% these days the amount of repossessions and fore closures would be astronomical?
 
Great post that & ive lost most of the faith in the one weve been with for over 50years poss far too long
Thinking of moving is it much hassle? anyone care to comment?
IKWYM. But I have almost zero contact with my bank and when I recently contacted them regarding a building loan just before Xmas, I was told the guy handling the business account would be back in touch shortly.... Still waiting !!
 

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Tour des Silos 2020 is on – and going global

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The annual Tour des Silos charity cycle ride is to go ahead after all this year, but under a different format. And the Sunday May 31st 2020 event will have participants in at least four continents. Former Openfield grain store development manager Rob Sanderson started Tour des Silos five years ago to raise funds for […]

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