Banks set spending limits for families in mortgage trouble

davet82 · 23-10-2012 04:00PM #1

http://www.independent.ie/business/personal-finance/latest-news/banks-despicable-for-setting-limits-on-family-spending-3264775.html

Bankers are setting out spending limits to what a family can live on before agreeing deals on mortgages in trouble.

Some examples:

Banks are telling families:

- How much they can spend on teenagers.

- Setting limits on what a family in trouble with a mortgage can spend on health insurance at €166 a month.

- Limiting spending on mobile phones to €65 a month for two adults and two teenagers.

- Families with two adults and two teenagers are being told to restrict entertainment, including parties and Christmas, to €200 a month for everybody

Surely this can't be right to be dictated to what you can and cannot spend money on? I know alot of people will say its their own fault but this seems extreme and wrong to me.

Any thoughts?

Anyone · 23-10-2012 04:02PM

davet82 wrote: »

http://www.independent.ie/business/personal-finance/latest-news/banks-despicable-for-setting-limits-on-family-spending-3264775.html

Bankers are setting out spending limits to what a family can live on before agreeing deals on mortgages in trouble.

Some examples:

Surely this can't be right to be dictated to what you can and cannot spend money on? I know alot of people will say its their own fault but this seems extreme and wrong to me.

Any thoughts?

I dont have any issues with it, if people want a "deal" on their mortgage they have to change their lifestyles. Its impossible to monitor and enforce though.

Lambsbread · 23-10-2012 04:06PM

I don't like the idea of banks dictating how people should live their lives, however, people need to take responsibility for their obligations!

Don't see how the bank can enforce this in any case.

23-10-2012 04:08PM

davet82 wrote: »

http://www.independent.ie/business/personal-finance/latest-news/banks-despicable-for-setting-limits-on-family-spending-3264775.html

Bankers are setting out spending limits to what a family can live on before agreeing deals on mortgages in trouble.

Some examples:

Surely this can't be right to be dictated to what you can and cannot spend money on? I know alot of people will say its their own fault but this seems extreme and wrong to me.

Any thoughts?

I have no problem with it except that people are such spastics that they need to be told such basic things.

Where To · 23-10-2012 04:08PM

Ten years too late.

Jhcx · 23-10-2012 04:09PM

Sounds like it is something out of the soviet union.

Chucken · 23-10-2012 04:11PM

Maybe if a budget had been worked out with people before the got their gigantic mortgages, it would have been a better idea.

pickarooney · 23-10-2012 04:15PM

Why do people spend such ludicrous amounts on mobile phones? Surely a fiver a month is more than enough for anyone, especially anyone in financial trouble.

sparksfly · 23-10-2012 04:17PM

Mortgage payers need to (but never will) band together into a well organised group and dictate to the bank how they will choose to "deal" with the situation, and what they will or will not accept.
70,000 customers for example, acting as an IFA like force, could pretty much set their own terms.

folan · 23-10-2012 04:19PM

budgeting help would be one thing. showing a person how to manage their finances etc. All good.

enforcing where the money goes though? cant see it working

Eircom_Sucks · 23-10-2012 04:20PM

sparksfly wrote: »

Mortgage payers need to (but never will) band together into a well organised group and dictate to the bank how they will choose to "deal" with the situation, and what they will or will not accept.
70,000 customers for example, acting as an IFA like force, could pretty much set their own terms.

+ 1

niallo27 · 23-10-2012 04:22PM

pickarooney wrote: »

Why do people spend such ludicrous amounts on mobile phones? Surely a fiver a month is more than enough for anyone, especially anyone in financial trouble.

Fiver a month is about 16 cent a day which means you could make a one min call a day off peaks or send 1 text a day.

Ellis Dee · 23-10-2012 04:23PM

Jhcx wrote: »

Sounds like it is something out of the soviet union.

The difference being that in the Soviet Union people were not allowed - much less encouraged - to borrow many multiples of their annual income for any reason, least of all to have a roof over their head. :rolleyes:

They did not need to, either, because everyone lived in State-owned rented accommodation for which they paid a nominal rent.

Gurgle · 23-10-2012 04:23PM

Shocking, banks trying to give people financial advice.

"Live cheaper in order to meet your commitments."
Truly despicable.

Yawns · 23-10-2012 04:25PM

sparksfly wrote: »

Mortgage payers need to (but never will) band together into a well organised group and dictate to the bank how they will choose to "deal" with the situation, and what they will or will not accept.
70,000 customers for example, acting as an IFA like force, could pretty much set their own terms.

How would you see that working out so. A flat refusal to pay anything at all and stay in the homes? I hate the idea of the banks dictating to people in any way, shape or form but the simple fact is that if there is families with mortgage problems that are out there spending €65 on mobile bills and the rest then clearly it's not just the banks at fault. People were and still are too stupid to be trusted to do anything by themselves.

I know of a couple who are currently unemployed. One of them will be getting christmas work and the other maybe too. They are hoping to get on HP a new car, a new 50" tv and want to have a second child. If one of them gets kept on as permanent staff, they want to try get a mortgage. Their parents think it's great. People are ****ing morons.

BizzyC · 23-10-2012 04:26PM

Have no problem with it at all.

Makes sense that someone who's having trouble paying their mortgage should have to cut back on non-essentials to do so.

This just makes sure they cant complain about being short while dishing out on the iPhone5 cause the 4S is out of date....

SEANoftheDEAD · 23-10-2012 04:34PM

Why don't the banks just sign a deal with MABS or something for accounts that are struggling... get them to budget...

Boombastic · 23-10-2012 04:35PM

I can't afford my mortgage, I can't afford to eat, so now I'm just off to the shop to spend €5000 on skylander cards :pac:

mitosis · 23-10-2012 04:36PM

If they can't manage their own finances, who better than the bank to do it for you...............:rolleyes:

Mellio · 23-10-2012 04:46PM

This is a good idea but as suggested above why were the banks not doing this in the so called good times.

Well I tell you why because they dont and never will give a f*ck whether people can afford it or not really, why because when the **** hits the fan the banks will pass on there over burdened books to the government and in turn to the general public so why would they really care about lending practices. they will jsut start again, get re-capitalised by the government and go happily on there way, and start again growing huge profits of interest.

This whole exercise really is just a way of trying to show there interested in people who are struggling with there mortgages to show our inadequate government there doing there bit for society.

Too little too late if you ask me, I think all people should do a two week course setting up a budget for themselves and do a worse case scenario on what thewy would be left with if they decide to have kids, if one person loses there job e.t.c. this shjould be the way going forward....

Carawaystick · 23-10-2012 04:47PM

Because the banks have managed their own finances so well these last few years in Ireland.....

23-10-2012 04:50PM

Mellio wrote: »

This is a good idea but as suggested above why were the banks not doing this in the so called good times.

Because fewer people were struggling to make payments?

who_me · 23-10-2012 04:52PM

Carawaystick wrote: »

Because the banks have managed their own finances so well these last few years in Ireland.....

Exactly this. The irony of banks giving financial advice to anyone these days is laughable. It would have been nice if they'd shown some of that fiscal prudence themselves over the last 10/15 years.

connellymarket · 23-10-2012 04:54PM

Banks should keep their advice to themselves !!

up for anything · 23-10-2012 04:54PM

Families with two adults and two teenagers are being told to restrict entertainment, including parties and Christmas, to €200 a month for everybody.

This made me leak laugh. €200 a month - are they rich folks? :eek: The only entertainment I can afford for myself and four kids is Sky and even at that it's pushing it. :rolleyes:

pickarooney · 23-10-2012 04:57PM

niallo27 wrote: »

Fiver a month is about 16 cent a day which means you could make a one min call a day off peaks or send 1 text a day.

Yeah, exactly, who needs to make calls every day?

the groutch · 23-10-2012 04:57PM

if it stops people who supposedly can't afford their mortgages from living like it's still 2006, then I'm all for it.

niallo27 · 23-10-2012 05:03PM

the groutch wrote: »

if it stops people who supposedly can't afford their mortgages from living like it's still 2006, then I'm all for it.

So people should leave the rest of their lives having **** all just so can they pay off their mortgage, what kind of life is that.

Boombastic · 23-10-2012 05:05PM

niallo27 wrote: »

So people should leave the rest of their lives having **** all just so can they pay off their mortgage, what kind of live is that.

:pac::pac: :rolleyes:

23-10-2012 05:09PM

"Here's your spending limit per month, after what you owe us, go do what you like with that".

That I have no problem with.
Dictating how much is to be allocated to what is a step too far.

the groutch · 23-10-2012 05:11PM

niallo27 wrote: »

So people should leave the rest of their lives having **** all just so can they pay off their mortgage, what kind of life is that.

it's called facing up to your legal responsibilities

Banks set spending limits for families in mortgage trouble

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