House prices by 2015

WhiteChristmas

Fag packet numbers:

£8k per household is roughly £4k per adult.
Savers outnumber borrowers by around 7 to one so we're talking about 12% of the adult population having an average unsecured personal debt of £30-40k each.
If half of them are £10k down then we've got a couple of million folk who are £50k in debt.

That's not a good place to be.

geneer

HAMISH_MCTAVISH wrote: »

And...........

Graham vanishes from the thread.

What a surprise.

Wow. Yet again good old Spamish demonstrates the self awareness of a rock. :rotfl::rotfl::rotfl:

Really a bit rich coming from the forums most talented escape artist.
What was it last time? Oh yes, your feelings were hurt, you being such a sensitive soul and all.

Tell me Hamish, do you intentionally accuse people of demonstrating your own obvious tendencies as a sort of diversionary tactic, or is it a case of you thoughtlessly absorbing the accusations directed at yourself into your meme memory bank as you do with most of your bullish assertions.

I'm guessing the latter.

geneer

http://falseeconomy.org.uk/blog/household-debt-up

Fast forward to last week's forecasts from the Office for Budget Responsibility. Buried in the small print (actually found in tab 1.8 of the ‘Supplementary Economy Tables’ spreadsheet) was a forecast that the UK’s personal indebtedness is set to worsen considerably.
As Labour MP Chuka Umunna highlighted at the Treasury Select Committee earlier today, it shows that household debt is set to rise from £1,560bn in 2010 (160% of household income) to £2,126bn in 2015 (175% of income) – an increase of 36.3%. By 2015 UK households will have amassed over two trillion pounds worth of debt.
The household debt-to-income ratio (the best measure of how manageable the debt burden is) fell from 2007 until 2010. It is now forecast to start rising again. Osborne described pre-crisis household debt-to-income ratios as unsustainable – and yet the ratio is forecast to hit a new all-time high in 2015.

Can only be a good thing for house prices right?

Graham_Devon

it shows that household debt is set to rise from £1,560bn in 2010 (160% of household income) to £2,126bn in 2015 (175% of income)

Doesn't sound very much.

Someone on a wage of 45k a year may have 4k debt. This is perfectly affordable. Plus he'll probably have sky. What a stupid MP to suggest such thing is an issue.

geneer

http://www.creditaction.org.uk/helpful-resources/debt-statistics.html
APRIL 2011:
Total UK personal debt at the end of February 2011 stood at £1,454bn.
Average household debt in the UK is ~ £8,428 (excluding mortgages).
This figure increases to £16,207 if the average is based on the number of households who actually have some form of unsecured loan.
212 mortgage possession claims will be issued and 163 mortgage possession orders will be made today
377 landlord possession claims will be issued and 251 landlord possession orders will be made today.


http://www.creditaction.org.uk/helpful-resources/debt-statistics/2010/april.html
April 2010:
Total UK personal debt at the end of February 2010 stood at £1,464bn.
Average household debt in the UK is ~ £8,920 (excluding mortgages).
This figure increases to £18,583 if the average is based on the number of households who actually have some form of unsecured loan.
219 mortgage possession claims will be issued and 185 mortgage possession orders will be made today
363 landlord possession claims will be issued and 244 landlord possession orders will be made today.

Look at that.
It transpires that household debts now are higher than they were a year ago.
And projected to get much worse.


Want to know the real kicker.

April 2007:

Total UK personal debt at the end of February 2007 stood at [FONT=Arial,Arial][FONT=Arial,Arial]£1,310bn[/FONT][/FONT].

Average household debt in the UK is [FONT=Arial,Arial][FONT=Arial,Arial]£8,793 [/FONT][/FONT](excluding mortgages) and [FONT=Arial,Arial][FONT=Arial,Arial]£54,124 [/FONT][/FONT]including mortgages.
Average owed by every UK adult is £27,856 (including mortgages).

Yep. Those emergency "stop capitalism burning" base rates don't appear to be helping much.

ukcarper

Graham_Devon wrote: »

Well yes, I agree. But you keep ignoring the bigger picture and suggesting that someone inside of that picture is likely to be ok.

We all know that someone is likely to be ok. Some with debt are likely to be more than ok, and just want to keep their debt going for whatever reason.

However, all your arguments ignores, and are purposely written to ignore the fact that debt is increasing, the numbers looking for help are increasing, the numbers going bankrupt is increasing and the total owed is.....whaddyaknow, increasing.

The bigger picture is consistenly blanked out. Hamish is trying to do it above. Chucky is trying to do it above.

The figure is increasing year on year, no matter which way you look at it. Those in crisis is increasing year on year.

Yet we have on here, chucky trying to suggest things are fine because people watch sky, and Hamish completely ignoring the fact that it doesn't matter what the debt is made up of, it is, still debt.

The fact that debt is increasing is not necessary a bad thing in itself is it depends on what type of debt. The lax mortgage lending of the early 2000 has stopped so you would think that the number of people over extended on their mortgages has decreased.

As for people asking for help or getting into trouble that is caused by a combination of things.

ukcarper

Graham_Devon wrote: »

Doesn't sound very much.

Someone on a wage of 45k a year may have 4k debt. This is perfectly affordable. Plus he'll probably have sky. What a stupid MP to suggest such thing is an issue.

For the last 25 years I had over £45k interest only (endowment) of debt and my salary varied between £15k and £25k over that period I am now debt free so I can't see having a average debt of 3 to 2x my income done me any harm and as I am now living rent and mortgage free I would say it has been a benefit.

Graham_Devon

ukcarper wrote: »

The fact that debt is increasing is not necessary a bad thing in itself is it depends on what type of debt.

It DOES matter when bankrupcies and crisis enquries are going up.

Why can you not see that!? It doesn't matter what type of debt it is, MORE people, are hiting crisis point every year.

What is not to understand about this? I really don't get how someone can suggest debt rising isn't really an issue when more and more people are drowing under it, in real terms and as percentage terms.

I give up now. Because there really is nothing left to say. This is all about how people want to view it personally. And thats cool with me. Figures back up my thoughts.

Doesn't matter about you PERSONAL debt situation. What matters if the numbers of people in trouble is increasing, regardless of any hypothetical good examples you wish to talk about.

Jimmy_31

HAMISH_MCTAVISH wrote: »

Graham, that figure includes mortgages.

Now given that if they weren't paying their mortgage, they'd still have the same or indeed a greater expenditure on rent but for a lifetime not a fixed term, this is a classic case of debt being good.

The average unsecured debt figure is £8428 per household. This has reduced from £9500 per household in 2009.

Wow, seriously, debt can now be looked at as good, no debt is good however way you look at it. Once i buy a home im going to be overpaying the mortgage to get rid of that DEBT as fast as possible so i am once again DEBT free.

Graham_Devon

Jimmy_31 wrote: »

Wow, seriously, debt can now be looked at as good, no debt is good however way you look at it. Once i buy a home im going to be overpaying the mortgage to get rid of that DEBT as fast as possible so i am once again DEBT free.

This, is what ALL of these people who think debt is good, ARE doing.

This, is the beautiful irony of it all.