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The High Street is really suffering...

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Comments

  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    nearlynew wrote: »
    It's no surprise really.

    The majority of retail spending over recent years was on the back of HPI.

    Always amazes me that house owners are the only ones that spend money.

    I presume they are the only ones saving money now then?
  • Dan:_4
    Dan:_4 Posts: 3,795 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    nearlynew wrote: »
    It's no surprise really.

    The majority of retail spending over recent years was on the back of HPI.

    You see, people don't have money any more, they have equity. And without the ability to "mew" they can no longer spend. Debt - fuelled consumerism is what has propped up our phoney economy.

    Debt is the new wealth.

    Or it was

    This is rubbish.

    You think everyone will "mew" their house for spending money? Nah, some of us, actually most of us, can afford the mortgage and have plenty left over for other stuff.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Dan: wrote: »
    This is rubbish.

    You think everyone will "mew" their house for spending money? Nah, some of us, actually most of us, can afford the mortgage and have plenty left over for other stuff.

    So why do we have such a consumer debt problem in this country?
  • Dan:_4
    Dan:_4 Posts: 3,795 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Thrugelmir wrote: »
    So why do we have such a consumer debt problem in this country?

    Credits Cards / Overdrafts - but people can cope with it.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Dan: wrote: »
    Credits Cards / Overdrafts - but people can cope with it.
    ..

    You are very optimistic :rolleyes:

    I'm sure Lemonjelly sees a totally different world to the one you live in.
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    edited 31 July 2009 at 2:17PM
    Thrugelmir wrote: »
    So why do we have such a consumer debt problem in this country?

    Consumer debt is not down to house owners only. More young people (sub 25yo) have higher debts than ever before.

    I would imagine less than 5% of under 25's are mortgage holders.
  • Dan:_4
    Dan:_4 Posts: 3,795 Forumite
    Part of the Furniture 1,000 Posts Combo Breaker
    Thrugelmir wrote: »
    ..

    You are very optimistic :rolleyes:

    I'm sure Lemonjelly sees a totally different world to the one you live in.

    Whatever..
  • mbga9pgf
    mbga9pgf Posts: 3,224 Forumite
    Dan: wrote: »
    Credits Cards / Overdrafts - but people can cope with it.

    Mon 27 Jul 2009
    LONDON (SHARECAST) - Fears are growing that the UK’s credit card crisis will worsen in the months ahead as consumers struggle to pay off debts.

    The International Monetary Fund (IMF) predicts that about 14% of the $1,914bn (£1,162bn) of US consumer debt will not be paid back.

    Europe is braced for a similar wave of losses, with the IMF warning that 7% of the $2,467bn (£1,497bn) of consumer debt in Europe will not be recovered.

    Much of that will be in the UK, which has the highest number of credit card borrowers on the continent.

    Investors will be keeping a close eye on a string of results from British banks over the next few weeks, many of whom have already warned that credit card debts will rise sharply.

    Peter Sergeant, partner at insolvency specialist Begbies Traynor, blames the situation on amendment’s to the Enterprise Act in 2002, allowing bankrupts to be discharged within 12 months, and the explosion in the availability of credit in the domestic economy.

    “This situation will only get a lot worse before it gets better and the legal aspect is likely to be something that needs to be addressed after the next election,” Sergeant says.

    The Financial Times reports that National Debtline took 41,000 calls in May from UK consumers worried about loans, credit cards and mortgage arrears. That’s double the 20,000 it received in May 2008.

    Credit card defaults have been on the rise for months as unemployment and the recession catch out overstretched consumers.

    Yeah, the country are coping well with such a reckless expansion in consumer debt. Which, together with MEW, accounted for a significant proportion of UK GDP since 1999.
  • Thrugelmir
    Thrugelmir Posts: 89,546 Forumite
    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    mbga9pgf wrote: »
    Yeah, the country are coping well with such a reckless expansion in consumer debt. Which, together with MEW, accounted for a significant proportion of UK GDP since 1999.

    Reality has yet to hit many.
  • Really2
    Really2 Posts: 12,397 Forumite
    10,000 Posts Combo Breaker
    So sorry am I getting it wrong but consumer debt is mainy down to home owners!

    People who rent, live at home with parents etc do not have credit cards!

    Would that be correct or just what this forum wants us to believe?

    As I stated before the greatest worry for many debt lines is the amount of under 25's in trouble with cards etc.

    That hardly fits in with the view it is mainly home owners.:confused:
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