U.K. Households Step Up Debt Repayments

itsnever2lateisit?

chucky wrote: »

because it's good news

just as people are paying down extra money on their mortgage it will be an increase in equity for the future regardless of the current house prices.

that will be when the spending will occur and the people that missed out on property previously will have missed out on that equity 'wealth'. for some it will be again.

Or is it bad news? Depending on your POV. I would of thought the Govt would prefer folks to spend it, not pay down debt, wasnt that the idea of VAT rate cut and interest rates near zero?

cogito

cocktail wrote: »

some are saving it at a higher rate after tax.

True. My mortgage is currently at 0.89% but my savings are earning 6.25% until July. That's when I'll pay a chunk off.

StevieJ

cogito wrote: »

True. My mortgage is currently at 0.89% but my savings are earning 6.25% until July. That's when I'll pay a chunk off.

You wise old MSEer you

Willievergetone

carolt wrote: »

If all those people with their 1p mortgages aren't paying off capital now, what the bleeding heck are they doing with it?!

Saving it I guess

setmefree2

carolt wrote: »

I'm surprised the figures weren't much higher - I'd expect with interest rates at historic lows, people could manage to pay off more.

In the 4th & 3rd Qtrs £8bn & £6bn was paid off - so £14bn.

Plus there was a record increase in savings: another £12 billion in Qtr 4 and £5 billion in Qtr 3 = £17bn

"Anxious Britons, fearful over soaring unemployment and a long, deep recession, are drastically increasing their savings, it emerged yesterday.
Households almost trebled the cash value of savings to £11.7 billion in the final quarter of last year (Q4), from only £4.1 billion in the previous three months, official national accounts figures revealed."

http://business.timesonline.co.uk/tol/business/economics/article5989378.ece

Really2

I seem to remember a few months ago people said house prices need to fall and the debt needs to be paid back.

All that is happening and apparently it's still not good news?
Is this not helping to recapitalize the banks.

Some people only seem to be happy with job losses and repos.

Wookster

Really2 wrote: »

Some people only seem to be happy with job losses and repos.

Do you seriously think people are happy with such news?

mr.broderick

Really2 wrote: »

I seem to remember a few months ago people said house prices need to fall and the debt needs to be paid back.

All that is happening and apparently it's still not good news?
Is this not helping to recapitalize the banks.

Some people only seem to be happy with job losses and repos.

I think that is a very fair reflection of this forum. You get the feeling that some members, i won't bother mentioning names, don't care what the fallout is as long as they could eventually afford to buy.

Really2

Wookster wrote: »

Do you seriously think people are happy with such news?

Well considering this as been branded as a non story and ignored by most bears.
But a storys of unenployment and repos get the bears all thanking.

It's an observation and one which is hard to dispute.

This is good news as people are paying back debt and saving. How could it not be?

mr.broderick

Wookster wrote: »

Do you seriously think people are happy with such news?

I'll back him up wookie, i'd say yes judging by some of the threads/comments on here over the last 6 months.