Credit Card Debt

kennyboy66_2

The_White_Horse wrote: »

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!!!

This may or may not be true, but why is it so much easier to go bust and start again in that bastion of socialism, the USA ?

Dan:_4

The_White_Horse wrote: »

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!!!

Maybe the lenders should carry out better credit checks before throwing money at them?

Jonbvn

Dan: wrote: »

They are all on 0%. I don't mind paying the transfer fees, [800 notes a year for borrowing that sum is a bargain].

I would disagree. Our mortgage is significantly (5+ times) larger than your credit card debt, yet we pay a little over 2X your CC intererst.

Now that's a bargain!:p

Dan:_4

Jonbvn wrote: »

I would disagree. Our mortgage is significantly (5+ times) larger than your credit card debt, yet we pay a little over 2X your CC intererst.

Now that's a bargain!:p

But my credit card debt is unsecured

Jonbvn

Dan: wrote: »

But my credit card debt is unsecured

That is a moot point, given that some loans have been known to become secured after defaults.

Thrugelmir

kennyboy66 wrote: »

Gents, if you click on this link you have access to reports for the last 5 years.

http://www.creditaction.org.uk/debt-statistics.html

Here is the June 2005 report

http://www.creditaction.org.uk/assets/PDF/statistics/2005/june-2005.pdf

Total credit card debt £55.03 bn at that time.

Another stat (includes mortgages, but will also include households with no debt).

Average houshold debt April 2005 £44k

Average household debt April 2009 £58k

I would not dispute that as a country we have too much government, personel and corporate debt, however on an individual level its not quite as bad as people make out.

Unsecured debt has been consolidated and reborrowed by many using rising equity in houses to provide secured debt. Going back a number of years not all lenders offered secured lending against property equity and if they did the rate of interest was somewhat higher than mortgage rates.

lemonjelly

^^^ True that.

All it takes is a CCJ. If the creditor knows you're a homeowner they'll go for a charging order.

Dan:_4

Jonbvn wrote: »

That is a moot point, given that some loans have been known to become secured after defaults.

It's highly unlikley any court will allow the lender to put a charge on their property for unpaid credit card debt.

tomterm8

Dan: wrote: »

It's highly unlikley any court will allow the lender to put a charge on their property for unpaid credit card debt.

Unfortunatly, I simply don't think you are right. Charges are becoming increasingly automatic. Especially with the new courts and enforcement act.

lemonjelly

^^^

Very true.

My colleagues and I are noticing a particularly increasing trend of unsecured creditors applying to the courts for charging orders to "protect" themselves.

Tgise of us in the debt industry anticipated this for some time in the "easy credit" years.