UK Banks and Building Societies write off £20 million pounds a day

Thrugelmir

chewmylegoff wrote: »

the point is that they can borrow at libor if they want to

I appreciate that . My question is who from. Which London based banks ?

blueboy43

purch wrote: »

I am sure you can provide some evidence to back that up.

http://www.moneywise.co.uk/news-views/2010/02/15/credit-card-rates-hit-12-year-high

Probably not the most reliable but there you go.

http://www.telegraph.co.uk/finance/personalfinance/borrowing/creditcards/7888152/Credit-card-interest-rates-highest-for-almost-a-decade-according-to-Bank-of-England.html

The BoE do publish the monthly statistics.

As Michael points out, there is next to no correlation between base rate and credit card rates, and if rates were to increase there is no reason to think that credit card APR's will follow.

My point was that it's not the interest rate that is the problem, more that the level of consumer debt should prove a drag on the economy - how much more can we borrow ?

purch

Ta......... :A

blueboy43

purch wrote: »

Ta......... :A

Having looked at the BoE statistical database, it seems like it is probably 9 years not 12 years.

Rates in 2001 exceeded this years rates.

http://www.bankofengland.co.uk/mfsd/iadb/index.asp?Filter=N&Travel=NIxIRx&levels=1&C=PB&G0Xtop.x=65&G0Xtop.y=6&Nodes=X40727X40728X40754X40755X45786&SectionRequired=I&HideNums=-1&ExtraInfo=true

Thrugelmir

blueboy43 wrote: »

My point was that it's not the interest rate that is the problem, more that the level of consumer debt should prove a drag on the economy - how much more can we borrow ?

Or does the financial system have the capacity to lend?

Thrugelmir

blueboy43 wrote: »

The majority of this growth was between 2000 and 2005

Outstanding mortgage debt doubled by £600 billion between 2003-2007.

chewmylegoff

Thrugelmir wrote: »

I appreciate that . My question is who from. Which London based banks ?

some of them and none of them, depending on when.

neverdespairgirl

It's also scary because so many people don't borrow at all. For example, OH and I have no debts*, neither do my parents, sisters, brother, or OH's brother. (Apart from my parents' mortgages, that is).

So someone's borrowing a lot more to make the average up to £8k for those of us who don't borrow at all.

* OH and I both spend mostly on credit cards, for cashback etc, but the bill is paid off in full monthly.

ukcarper

If you spend say £500 per month on your credit card does and pay it all off when bill arrives is that £500 classed as debt.

neverdespairgirl

ukcarper wrote: »

If you spend say £500 per month on your credit card does and pay it all off when bill arrives is that £500 classed as debt.

I don't know - not by me, it's not, anyway (-: