Insolvency

According to the BBC (and accountants Grant Thornton), overspending during the Festering Season could mean that up to 10,000 people will declare themselves insolvent/bankrupt over the next three months, as well as 20,000 other people who will declare, but for longer-term reasons than just Festerous overspending.

Now, discounting the fact that it’s a report funded by accountants, and thus dedicated to drumming up their own business, I really don’t get the entire overspending thing, regardless of whether it’s related to Festering Season or not. Over the last few years, financial institutions seem to have been promoting the entire ‘debt is good’ culture, and in the twelve months to the end of November 2006, the UK’s personal debt (including mortgages) had risen 9.5% to £1,278 billion.

While I acknowledge that I’m utterly crap with money (Well, I was ’til last year, when I got a lot of stuff sorted out) I don’t see the point in buying things simply for the act of buying, or just to amass posessions. If you can’t afford something (or can’t afford the repayments, if you’re going to get something on credit) then simply don’t get it. Or save for it. But no, the ‘instant gratification’ thing seems to bite people instead, and they work on a ‘get it now, and deal with the bills eventually’ mentality.

Over the last year, yes, I’ve bought some things on credit (new laptop, new computer, and all my work-related expenses, for example) but I’ve always known I’ll be able to repay them ASAP, without a problem. And that’s what I’ve done.

Personally, I find it hard to feel any sympathy for people who’ve got themselves into this situation, as it’s primarily a self-inflicted thing. “But it’s the fault of the banks, advertising loans and cards”, some of them cry. But you don’t have to apply for them all, do you? There’s a thought process involved here – or at least there should be – where if you know you can’t afford it, you don’t fucking do it.

That said, though, I do also find the practices of the banking community to be pretty objectionable too. Every lunchtime in the last month, I’ve walked past the local Lloyds bank, which in every window has had a promotional poster saying (I’m paraphrasing slightly, but not enough to worry about) “Don’t get hit by the Christmas spending snowball. Take out a loan with us”. And I suspect it’s people who’ve taken ‘advantage’ of offers like that who are the ones who’ll suddenly find themselves in the shit over the next three months.

Me? I just find it scary when I realise that I’ve possibly got a far healthier attitude to money than I ever thought I had…