Welcome to the new buzzword courtesy of the media – “mortgage stress.” A google search will bring multiple pages of news stories, one such example is linked to this post. A definition of mortgage stress would probably say something like:Stress that is brought on by financial constraints resulting from mortgage repayments and rising interest rates
Their formula is apparently based on whether 30% of your income is going towards a mortgage. So according to them I am mortgage stressed. Yet I don’t feel stressed about my financial situation at all.
I have a budget, a good one set up by brother Danny. Therefore I know where my money is going. Mortgage repayments are updated and finances are juggled around them. Money is allocated for essentials such as food, utilities and other expenses such as car and scooter.
So when people say they are struggling I believe that there is always more to the story that they are letting on, for example:
- Did they overextend themselves in the first place in order to get that house?
- Are they sacrificing anything in order to pay for mortgage?
- How good are they at saving money?
- How much goes onto credit cards and are these essential purchases?
- When buying food is it brand names or generics?
People have had it very good for a long time and have become too used to a standard of living. Well, newsflash, things aren’t always fantastic, Year 12 Economics would have taught people that. The border between needs and wants have become blurred.
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1 comment:
I have to admit I'm getting quite skeptical about all this too. One hyped up news report said people where having to go without entertainment to pay their mortgage - shock horror!
On the Sunrise show this morning, a phone poll said that 98% of respondants (of 2000) said they are financially at breaking point. My immediate thought was that if they are at breaking point they shouldn't be spending money on expensive phone calls, and perhaps they can sell their tv to pay off some of their mortgage... And polls like this are always skewed - who is going to ring in to say I have plenty of money? All the poll proves is there is 1960 people in Sydney who watch Sunrise are struggling financially, not 98% of Australia.
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