Why is personal DEBT so high in this country?

StevieJ

ad9898 wrote: »

Look at all that MEW, follows the house price graph perfectly from 2001-2007. People thought they were wealthier, yet in reality, they just had more debt.

Really, how could people be so stupid.

Interesting that it doubled between 1981 and 1989 but has only incread around 50% since then, were they mewing in te 80's?

swiss69

People who normally holidayed at Butlins started holidaying in Dubai and Banks who normally would lend to some people if they were the last people on earth all of a sudden decided to!

StevieJ

ad9898 wrote: »

No it wouldn't, we have more credit cards than people. I just could never understand why people keep buying things on credit. The novelty factor from buying something lasts much longer than if you have the spectre in the background that what you bought you really couldn't afford.

Well I receive 2% cashback :T

StevieJ

GrammarGirl wrote: »

Very true. But the optional social element of student life is (for the most part) offset by the hard work and dedication put into a degree, along with the additional part time jobs worked to keep the student loan debt as minimal as possible. I often look at my friends who didn't go to uni and wonder if they made the right choice - most have their own houses (maybe not so good in the current climate, but still an asset!), nice cars saved for and paid for outright when they were living at home with no rent to pay, more disposable income... generally they have progressed further down the line in life than I have, because the 3 years I spent at uni were 3 years I missed out on moving forward with life! If that makes sense. Time seems to stand still when you're a student!

I guess it depends on the degree you now have media studies anyone:eek:

Generali

StevieJ wrote: »

Interesting that it doubled between 1981 and 1989 but has only incread around 50% since then, were they mewing in te 80's?

At a guess it was higher inflation causing increases in nominal house prices. Also, more endowment mortgages so mortgage debt didn't fall in nominal terms over the term of the mortgage in more cases.

StevieJ

Generali wrote: »

At a guess it was higher inflation causing increases in nominal house prices. Also, more endowment mortgages so mortgage debt didn't fall in nominal terms over the term of the mortgage in more cases.

Raises another interesting point (even a missing link) what about a graph line for assets? it is a little biased to show an increase in debt without showing a corresponding increase/decrease in assets.

GrammarGirl

StevieJ wrote: »

I guess it depends on the degree you now have media studies anyone:eek:

Did you actually know I did a media studies degree, or was that an (un)lucky coincidence? :rolleyes:

Generali

StevieJ wrote: »

Raises another interesting point (even a missing link) what about a graph line for assets? it is a little biased to show an increase in debt without showing a corresponding increase/decrease in assets.

Possibly. Of course debts are serviced out of income rather than by an asset so there is meaning in the ratio of debt:income.

Debt:asset value is a little more problematic as asset prices are set at the margin and if large numbers try to liquidate the asset, the asset value can fall substantially, depending on the liquidity of the market of course.

Also would you include credit card and other unsecured lending? What about MEW to pay off a credit card debt?

I guess in the end you look at lots of stats and see what picture they paint overall. Any single number or even data series taken in isolation may well be misleading.

lostinrates

GrammarGirl wrote: »

Very true. But the optional social element of student life is (for the most part) offset by the hard work and dedication put into a degree, along with the additional part time jobs worked to keep the student loan debt as minimal as possible. I often look at my friends who didn't go to uni and wonder if they made the right choice - most have their own houses (maybe not so good in the current climate, but still an asset!), nice cars saved for and paid for outright when they were living at home with no rent to pay, more disposable income... generally they have progressed further down the line in life than I have, because the 3 years I spent at uni were 3 years I missed out on moving forward with life! If that makes sense. Time seems to stand still when you're a student!

I have to say for a great many of my student peers I really don't think the socialising was offset by hard work! It is however entirely possible to combine both. I went in the year when fees first had to be paid I think, and I think it BENEFITTED my attitude to work. I worked through out university, lived on campus the first year, flat shared after that and later stared a business while a student, had very long work hours, plus full time education and a relationship and some social life. Its not impossible on MOST courses to work at th same time as study, but merely a sort of attidtude that its too hard...it is not. I noticed that among my friends those of us who worked and contributed/paid all of our costs rather than having grants or parents do it tended to feel more invested in our results and education, and gave us skills and work ethic that we would not have developed so easily otherwise. That said I was well used to earning while at school, I think its harder for people who have been reliant on parental handouts to deal with living away, earning etc etc at the same time.

ETA: DH also worked also was more expected of him -musician. When doing his FT law conversion we both clerked, not huge amaounts of mony but good fun and a great introduction to legal systems...even if he does work in an entirely different area he is very comfortable with the procedures and etiquette. He was by far in th minority of people working through the conversion.

Student debt is a terrible thing, not encouraging students to work is, IMO, at least as bad.:o

chewmylegoff

dervish wrote: »

When watching thre excellent DAILY POLITICS today Neil Armstrong referred to the fact that Britain had the highest ever personal debt in HISTORY!

How has this happened?

british individuals have borrowed more money per head than any other country ever has.

it's not rocket science....[please insert punchline here].