A bleak Christmas for low paid permies

**AtW** · 16 October 2006, 13:18

If they paid with credit card then they should be protected.

In other news hard-working City workers get highest bonus on record - 8 bln GBP this year or so, looks like it is good time to buy couple of Porsche and Ferrari cars to resell at higher value in December: I hear threaded wants to get rid of his Lambo in favour of newer model that works on garbage and can take off vertically.

**tim123** · 17 October 2006, 09:21

Originally posted by AtW

If they paid with credit card then they should be protected.

In other news hard-working City workers get highest bonus on record - 8 bln GBP this year or so, looks like it is good time to buy couple of Porsche and Ferrari cars to resell at higher value in December: I hear threaded wants to get rid of his Lambo in favour of newer model that works on garbage and can take off vertically.

Very funny!

If they had a credit card why would they be saving in a Christmas club?

tim

**AtW** · 17 October 2006, 09:30

Originally posted by tim123

If they had a credit card why would they be saving in a Christmas club?

If they had cash, why would not they put it into separate bank account where it would have been kept safe until Day X? Then use credit card to place order to be covered for event of bankrupcy of the company that took order.

**Pig** · 17 October 2006, 11:04

Atw, I haven't got a credit card and won't get one either. If I want something I'll go and buy and pay no interest at all.
As to why people do it this way its quite simply the only way they can afford to save for Xmas as they have to budget. Having it in a savings club means they can only draw on it at the allocated time!!!
So please come back down to earth not everyone is loaded!!

**AtW** · 17 October 2006, 11:09

Originally posted by Pig

So please come back down to earth not everyone is loaded!!

This is true, but it's not the issue - they still have to get quiet a lot of money £30 per month works out £360 pa, so they do have money, obviously not in one go and I understand that they go for this club crap because they can't control themselves and afraid they will spend that money if it is somewhere around stored as cash or even in bank account. And this is exactly the problem these people have - their problem is not that they are not loaded, or that the firm gone bust, their problem is that they can't control themselves and can't save money in safe way!

At the very least they could have bought some saving stamps or even premium bonds.

**Pig** · 17 October 2006, 11:21

Atw, your sprouting sh1t you need to join the real world!! Your looking out of rose tinted specs!!!

If they had the money they wouldn't need savings club but coz they don't have the money they need to save somewhere! Not a matter of control a simple matter of neccessity!!!

**AtW** · 17 October 2006, 11:28

Originally posted by Pig

If they had the money they wouldn't need savings club but coz they don't have the money they need to save somewhere!

Let's think logically about it.

Here is what we know pretty much for sure:

1) People wanted some expensive present at the end of period ~12 months
2) People saved every month about 1/12th of the amount - this was put into "club" framework
3) People lost their money because "club" gone bust

The problem here is not monetary - these people had the money to save, but the problem is where they put the money, that club thing that gone bust. So the question is why they put money into club and did not use savings account, piggy bank, or savings stamps?

Main reason IMO is that people were just not sure they would not raid those savings during the year, so they used far away club to avoid the temptation. This is the main problem for the people - they can't control themselves, not the lack of money that they obviously had to save as otherwise they would not have lost anything: I am all for people saving money for purchase rather than using credit card (I never use it myself), but it is the way how they saved it that was wrong - just put money into savings account, or buy stamps if you really can't control yourself.

Secondary reason is, probably, they were getting some discount on that present so they thought they would buy more for less: this is always false economy and it was demonstrated clearly in this case.

**Pig** · 17 October 2006, 11:40

Let's think logically about it.

Here is what we know pretty much for sure:

1) People wanted some expensive present at the end of period ~12 months [B]- Wrong this is just assumption most just want to give their families something not so much expensive present[/B]
2) People saved every month about 1/12th of the amount - this was put into "club" framework [COLOR=Navy]- True[/COLOR]
3) People lost their money because "club" gone bust [COLOR=Navy]- True, bit evident really[/COLOR]

The problem here is not monetary - these people had the money to save, but the problem is where they put the money, that club thing that gone bust. So the question is why they put money into club and did not use savings account, piggy bank, or savings stamps? - Cr@p, they budgetted to save money for a particular purpose where as what your saying is accessible anytime

Main reason IMO is that people were just not sure they would not raid those savings during the year, so they used far away club to avoid the temptation. This is the main problem for the people - they can't control themselves, not the lack of money that they obviously had to save as otherwise they would not have lost anything: I am all for people saving money for purchase rather than using credit card (I never use it myself [B]- why have one then????[/B]), but it is the way how they saved it that was wrong - just put money into savings account, or buy stamps if you really can't control yourself. - Glad this is just your opinion coz it is still not right. Try living on a budget and see how hard it is, allow yourself a minimum amount per week then see how easy it is to not touch extra.

Secondary reason is, probably, they were getting some discount on that present so they thought they would buy more for less: this is always false economy and it was demonstrated clearly in this case. - Have a look at these clubs they do not give discounts, more often then not things a ******* sight more expensive

**AtW** · 17 October 2006, 11:48

The problem is not that they budged - this is something I support wholeheatedly as my policy is not to buy something if I can't pay for it in full.

The problem is that they saved using inherently flawed risky way and now they got burnt. The primary cause for this mistake in my view was their (people's) inability to control themselves at actually saving money - they certainly put it into far away club out of fear that otherwise they would not save for it.

Thus, people would have been better off by working on the underlieing root problem that they have - can't save in an old fashioned way by putting cash where it is safe - bank.

FYI I am living on a very limited budget with few luxuries. This was made possible however because I saved a lot in the past few years of working my arse off. I kept money in the bank - so I do know a thing or two about savings.

A bleak Christmas for low paid permies