Credit Action stats out for Dec

StevieJ

Cannon_Fodder wrote: »

There is a couple on a thread on DFW with £120K unsecured, so that is 3 or 4 other households' portions...

Oh you believe that one do you?

Cannon_Fodder

Well, http://forums.moneysavingexpert.com/showpost.html?p=16368589&postcount=1 seems like an awful lot of effort to go to, for a wind up...

Until someone proves to the contrary, I'll give them the benefit of any doubt.

ps Kenny4315 certainly believes it, look at the stick he's given the "huggers"... http://forums.moneysavingexpert.com/showpost.html?p=16402517&postcount=31

setmefree2

!!!!!!? wrote: »

http://www.creditaction.org.uk/december-2008.html

Yep - we definitely need to borrow more, underwritten by the state if necessary. Gordon certainly has come up with a genius plan to get us back to prosperity through more borrowing.

Average household debt in the UK is ~ £59,630 (including mortgages).
Average owed by every UK adult is ~ £30,398 (including mortgages).
Average outstanding mortgage for the 11.7m households who currently have mortgages now stands at ~ £103,903.


These amounts seem very perfectly acceptable to me. By the way £59k wouldn't buy you a shed in the SE.....

setmefree2

!!!!!!? wrote: »

Amazing how easily the notion that borrowing well over a hundred thousand pounds just to buy a basic starter home became accepted by the public at large.

Chicken feed my friend - the US governments gonna owe 2 trillion dollars don't you know..

setmefree2

kennyboy66 wrote: »

That's a load of Hong Kong Phooey

Oh man Hong Kong Phooey - I loved him

Cannon_Fodder

setmefree2 wrote: »

Chicken feed my friend - the US governments gonna owe 2 trillion dollars don't you know..

With a GDP of around $14 trillion, borrowing 1/7th doesn't sound too bad.

Meanwhile in the UK, with a GDP of £1.4 trillion, our Personal Debt already exceeds 100% of GDP...

...and Govt borrowing, when taking PFI, Northern Rock, the bank bailout etc into account, will also exceed 100% of GDP.


We sure are best placed to be No1 in the world at something, for once.

kennyboy66_2

Cannon_Fodder wrote: »

Well, http://forums.moneysavingexpert.com/showpost.html?p=16368589&postcount=1 seems like an awful lot of effort to go to, for a wind up...

Until someone proves to the contrary, I'll give them the benefit of any doubt.

ps Kenny4315 certainly believes it, look at the stick he's given the "huggers"... http://forums.moneysavingexpert.com/showpost.html?p=16402517&postcount=31

Well thats the beauty of these wind-ups, how is anyone going to prove or disprove anything ?

To be honest I have to admire anyone who can make the most outlandish tale (particularly when the have just joined the forum) and still get either furious responses or "hugs". At least the huggers are well meaning if slightly naive.

The people venting there spleen would be better just going for a run or a swim if they get that worked up.
Kenny excelled himself by claiming to have retired at 31 - this claim might have more credibilty if he could spot the difference between a genuine problem and a wind up, or didn't have a desparate need to display his intellectual & business prowess.

Another cracker was the person who claimed to want to get a BTL despite his £25k being tax credits.

Great entertainment for lurkers at least, keep em coming guys.

Dithering_Dad

Cannon_Fodder wrote: »

Hush your mouth, how dare you impinge the honor...! Oh, alright...

Granted! But its seems that way round at the moment, it'll probably swing back if we get another -0.4% or less from Haliwide.

Even those using "credit" - which I always feel should be called "debt" - responsibly are dependents. When a crisis, whether personal, corporate or national occurs, that dependancy is exposed.

Better not to have the dependancy if possible, imo.

I agree that the figures do seem quite large, especially given that the £100k spread across all households with mortgages is an average figure.

We've all had these discussions before - probably the last time someone posted these debt figures into the forum - where the figures produced don;t take into the fact that many people have high mortgages but have high incomes and high amounts of equity (I'm kinda one of them). The credit card figures don't take into account those people who have high credit card bills due to travelling (again, me. I pay for hotels, flights and food for business trips) yet pay off the balances at the end of each month. The figures also don't take into consideration that this money (for the most part) hasn't just been thrown into the fire but has been spent on assets such as cars that can be reposessed if necessary (so a £10k car loan could really be a £2k debt if the reposessed car was sold for £8k).

I agree though that people need to start weaning themselves off debt and start saving up for things. We haven't had a car loan for years, we saved up for our original car many years ago and bought it in cash, then we put money by each month to save up for the next one (instead of paying the cash, plus interest to a finance company). It's a difficult culture-shift to actually have to save and wait to purchase things, but one I am sure a lot of people will get the hang of over the next few years.

setmefree2

DD I have to disagree with you

I believe easy access to capital is really important for businesses and individuals.

There will always be some people who mess up but on the whole people and companies borrow money and pay it back, and there is no problem. I don't see why the majority should suffer just because the few over-do-it. When the banking system is functioning properly "risk management" can factor in default levels and the banks make plenty of money.

Borrowing money is a privilege and I'm really grateful to the banks for loaning me money over the years to buy a home - (though the banks have took the michael with bank charges etc in the past). If people had to save up for a home they would be nearly dead before they got the benefit.

Dithering_Dad

setmefree2 wrote: »

DD I have to disagree with you

I believe easy access to capital is really important for businesses and individuals.

There will always be some people who mess up but on the whole people and companies borrow money and pay it back, and there is no problem. I don't see why the majority should suffer just because the few over-do-it. When the banking system is functioning properly "risk management" can factor in default levels and the banks make plenty of money.

Borrowing money is a privilege and I'm really grateful to the banks for loaning me money over the years to buy a home - (though the banks have took the michael with bank charges etc in the past). If people had to save up for a home they would be nearly dead before they got the benefit.

Disagree with me? How very dare you?

Actually, we do agree. I also think that easy access to credit for business and individuals is vital, the point I was making is that sometimes it can be too easy, especially when used for non-essential items. If your vehicle dies and you use it for business or getting to work or other essential tasks, then clearly you can't do without until you can save up for a new one. However, if people just want to get a new car because 'her at number 27 has a brand new Yaris' then having to save up for it will probably make 'keeping up with the Jones' less vital, especially when you have to hand over £10k off your own hard earned and hard saved cash just on a silly whim.

I must admit that once I have money in my bank account eaning interest, I do think twice (even three or four times) before I go out and spend it - something that doesn't always happen when we use the 'Magic Money' of credit.