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£120,000,000 a day in interest alone!!!
ILW
Posts: 18,333 Forumite
The UK is paying around £120 million a day in interest on our national debt.
What could this have been spend on if we had been a little more prudent in the past?
What could this have been spend on if we had been a little more prudent in the past?
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Comments
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The UK is paying around £120 million a day in interest on our national debt.
What could this have been spend on if we had been a little more prudent in the past?
A quote that I`ve heard a few times from politicians is something like "5 primary schools a day", which sounds possible.30 Year Challenge : To be 30 years older. Equity : Don't know, don't care much. Savings : That's asking for ridicule.0 -
Debt buys primary schools in the past so we pay for the buildings over time just like a mortgage. It can be good debt. It's only around £700 per person per year it isn't much. If we didn't have debt we wouldn't have school buildings, motorways, hospitals, etc...:footie:
Regular savers earn 6% interest (HSBC, First Direct, M&S) Loans cost 2.9% per year (Nationwide) = FREE money. 0 -
Debt buys primary schools in the past so we pay for the buildings over time just like a mortgage. It can be good debt. It's only around £700 per person per year it isn't much. If we didn't have debt we wouldn't have school buildings, motorways, hospitals, etc...
And it is because of this mindset that we are in this mess, "it's only £700 per person":rotfl:
WHAT ABOUT THE CAPITAL
When and how does that get paid back0 -
£700 per person per year sounds a lot of money to me for just the interest without even touching the capital.Debt buys primary schools in the past so we pay for the buildings over time just like a mortgage. It can be good debt. It's only around £700 per person per year it isn't much. If we didn't have debt we wouldn't have school buildings, motorways, hospitals, etc...
Does make you think that we coould have been in a pretty good position now if we had lived within our means in the past. As someone said earlier we could be building 5 schools per day at no cost.0 -
£700 per person per year sounds a lot of money to me for just the interest without even touching the capital.
Does make you think that we coould have been in a pretty good position now if we had lived within our means in the past. As someone said earlier we could be building 5 schools per day at no cost.
It's totally meaningless to say "we're paying £120 million/day, £700/day/person" etc without analysing where the money goes.
How much is returned in tax? How much goes to pension funds? How much goes to holders of National Savings products? How much goes to the Bank of England (and is immediately returned to the Treasury)?0 -
It's totally meaningless to say "we're paying £120 million/day, £700/day/person" etc without analysing where the money goes.
How much is returned in tax? How much goes to pension funds? How much goes to holders of National Savings products? How much goes to the Bank of England (and is immediately returned to the Treasury)?
Surely it is better to have the debt paid off though and be in a position where the country can truly live within its means?
I agree the borrowed money in the past was borrowed for a reason (improving hospitals/schools etc) but that does not mean that the debt should never be paid off, imo.YNWA
Target: Mortgage free by 58.0 -
It's totally meaningless to say "we're paying £120 million/day, £700/day/person" etc without analysing where the money goes.
How much is returned in tax? How much goes to pension funds? How much goes to holders of National Savings products? How much goes to the Bank of England (and is immediately returned to the Treasury)?
You make a valid point. However the UK is dependent upon international funding. As we have insufficent capital in the UK to finance our own debt.
Around 30% is owned by foreign investors (2nd largest holder). So thats £40 million a day of UK wealth leaving the country not even being reinvested back into the economy.
With QE the BOE now owns 25% of Government debt (3rd largest holder). At some point this will be sold back into the market and refinanced.
A few facts about the National Debt.
We owe £37,133 for every man, woman and child
That's more than £80,595 for every person in employment
Every household will pay £1,881 this year, just to cover the interest0 -
Each household would have to pay...Thrugelmir wrote: »Every household will pay £1,881 this year, just to cover the interest
not "will pay"0 -
Thrugelmir wrote: »With QE the BOE now owns 25% of Government debt (3rd largest holder). At some point this will be sold back into the market and refinanced.
My guess is that much of this will be held to maturity and retired.0
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