Credit Card Debt

PasturesNew

Dan: wrote: »

I worked it out the other night that I currently owe 27K on credit cards :eek:
Luckly, I have the funds to settle up tomorrow if I wish.

Show off

I've never checked, now's as good a time as any:
- are you male?
- single?
- fit?



Oh ... and do you like older women?

nearlynew

Generali wrote: »

I think that people have been paying the mortgage on the credit card in the States.

As so often happens, people get excited and translate the news to the UK despite the absence of any actual evidence (journalists have been known to do this too - take something happening in the US, find an annecdotal example in the UK and handily forget that annecdote isn't data, it's a datum point).

But the curse of rampant HPI and the subsequent credit-fuelled consumer binge is common to both countries.

And the resultant effect is the same.

Dan:_4

PasturesNew wrote: »

Show off

I've never checked, now's as good a time as any:
- are you male?
- single?
- fit?



Oh ... and do you like older women?

Hi PN

- yes
- no
- yep

- Well, I do have a limit

lemonjelly

Thing is, mortgage is a secured debt, & a debt which should be prioritised in the larger scheme.

Working in debt advice, I've seen countless cases where people have been paying their mortgage or similar by credit card. The way a lot of people have seen it, it means the mortgage is paid, their home is safe, credit card company can take a running jump/sort it later.

Problem is, once they've added loads of charges, they'll get a CCJ, and if you're a homeowner, they'll then get either a charging order on your home, or an order for sale, or apply for you to be declared bankrupt.

Kind of highlights the fact that people continually put off the need to actually address problems IMO.

(Also, is a kind of delusional way to deal with things IMO)

Lotus-eater

lemonjelly wrote: »

Working in debt advice, I've seen countless cases where people have been paying their mortgage or similar by credit card.

As you work in debt advice, can you say how it is going atm? Has it got worse or better?

lemonjelly

Difficult to assess as worse/better.

What I would say, is that demand has definitely increased. I have friends in the same line who have all available appointments for the next 5-6 weeks booked already.

There are definitely a lot more people requiring debt advice.

I have noticed that the clients appear to be taking it more seriously now - 2-3 years ago they were a lot more blase about how they came to be in debt, their reasoning behind why they had got to their current situation etc etc. Perhaps this relates to job security?

What scares me a little, is how I have become kind of desensitized to it. When I started (as a volunteer, several years ago) £1000 was a high amount & it was referred to a caseworker. Caseworkers would generally deal with cases with between £5000-£10000 per client. Now, I think less about the amounts. People come to me with debts in excess of £50k, and that is in no way unusual - in fact I saw someone the other day who said they had a lot of debt, & it turned out to be "only" £6k. It is wrong that we feel the need to include that "only". Thing is, to the clients, it isn't "only" anything, especially if they have just lost their jobs.

A colleague of mine recently said it isn't an exciting case anymore unless they owe over £100k.

Consumer borrowing has been ridiculous and unsustainable for at least 10 years. Bankruptcies have risen every year in that time. Debt relief orders will be massive I reckon. In addition, with a reduced amount of credit available, one trend has been for debtors to pay off one creditor with another source of credit. I suppose now people are having to face up to not being able to do this...

lostinrates

Bizarre question perhaps, but mght not increased debt signal advent of business/investment growth? Im suggesting thats entirely healthy: but it does seem to be an ingrained source of funds?

lemonjelly

The people I work with are all individuals. In fact, I'm not qualified/trained to deal with business debt, not even sole traders (if they're still trading).

What I see, is the amount of personal borrowing that has gone on.

It's a funny world, sometimes I despair - I see pensioners who have taken out loans (& PPI) with monthly repayments being £40 short of their total monthly income. I see people who work, are single, and have just spent, spent, spent. One rare case recently admitted she'd blown it on going out.

A lot of people have over-extended themselves.

What is really scary, is the amount of people with little/nothing to show for it!:eek:

Traditionally in personal debt reasons for difficulties used to be death, redundancy, seperation or illness.

Over the past few years, the main reason is simply over-borrowing.

Not sure this answers your question though!:o

lostinrates

lemonjelly wrote: »

The people I work with are all individuals. In fact, I'm not qualified/trained to deal with business debt, not even sole traders (if they're still trading).

What I see, is the amount of personal borrowing that has gone on.

It's a funny world, sometimes I despair - I see pensioners who have taken out loans (& PPI) with monthly repayments being £40 short of their total monthly income. I see people who work, are single, and have just spent, spent, spent. One rare case recently admitted she'd blown it on going out.

A lot of people have over-extended themselves.

What is really scary, is the amount of people with little/nothing to show for it!:eek:

Traditionally in personal debt reasons for difficulties used to be death, redundancy, seperation or illness.

Over the past few years, the main reason is simply over-borrowing.

Not sure this answers your question though!:o

No, but its interesting nonethetheless.:).

The_White_Horse

GDB2222 wrote: »

For someone whose finances are dodgy, it makes perfect sense to bung everything on plastic, whilst keeping some cash and all that gear you've bought for a rainy day. Then go bankrupt, lose all the debts, and get a discharge in 12 months time.

Making bankruptcy so easy and no one being shamed about it anymore is anothe r lefty invention. I wonder how many would get themselves up to their eyeballs in debt, taking out liar loans, if they would end up in debtors prison if they failed to keep up the repayments.

Stop making life easy for the buy now pay never brigade.

BROWN and his cabal of loons OUT!!!