debt statistics

geneer

http://www.myintroducer.com/view.asp?ID=8134

Money education charity Credit Action has released the October debt statistics, a monthly release which details the level of debt in the UK.
Key statistics from the release, which shows month-by-month trends, include:

- £55,822 is the average household debt (including mortgages)
- £29,546 is the average amount owed by every UK adult (including mortgages)
- £175m is the personal interest paid in UK daily
- 1,775 people are made redundant daily
- 849,000 people have been unemployed for more than 12 months
- £22.54m is the daily write-offs of loans by banks & building societies
- Every 14.6 minutes a property is repossessed
- CAB deal with 8,910 new debt problems each working day
- £111,500,000 is the daily increase in Government national debt (PSDN)
- £1,278,000,000 is the total value of all purchases made using plastic cards today

Liz Dunscombe, Director of Project & Partnership Development at Credit Action says:

"That the October debt statistics show some concerning indicators will come as no great surprise."

The annual growth rate in consumer lending has risen to 2.3%, its highest level since May 2009. With consumer confidence persistently low, this may suggest that people have been forced to borrow more to meet existing commitments over the past year.

Moreover, given that daily write offs of loans by banks and building societies increased in Q2 2011 to £22.54m, a worrying picture begins to emerge.

Additional pressure has been placed on some on family budgets due to recent increases in redundancies and long-term unemployment. The number of daily redundancies rose to 1,775 in the 3 months to the end of July, whilst the total number of people who have been out of work for over a year also increased to 849,000, up 2.5% on the previous quarter and 6.4% over the past year.

Dan:_4

What's the point in this?

Jack_Johnson_the_acorn

Dan: wrote: »

What's the point in this?

My thoughts exactly.....

Maybe Geneer is saving such a big deposit that he will just buy his house outright!

Good luck with that

macaque_2

geneer wrote: »

http://www.myintroducer.com/view.asp?ID=8134

Good post! This bit particularly caught my eye:

£175m is the personal interest paid in UK daily

That adds up to £60 billion a year going straight to the finacial services sector. If half of that was going into manufacturing and technology, it would go a long way to improving our prosperity and quality of life.

Builders make a valuable contribution to the economy. Built properties on the other hand are a different story. Property churning of the past 15 years has undermined quality of life and prosperity and wealth creation on almost every metric you can name (other than bonuses in the city and commission for financial advisors).

geneer

Dan: wrote: »

What's the point in this?

Going to tread carefully dan as I don't want to blow your mind.

Debt effects the economy and house prices. Its been a bit of an issue the last few years. Apparently.

vivatifosi

Dan: wrote: »

What's the point in this?

I think its an interesting thread. It's headed "debt statistics" and contains a lot of, well, debt statistics. Seeing them together in one place is quite interesting.

Out of interest, do people have an issue because geneer was the one who posted? It's a shame if that's the case.

JonnyBravo

vivatifosi wrote: »

I think its an interesting thread. It's headed "debt statistics" and contains a lot of, well, debt statistics. Seeing them together in one place is quite interesting.

Out of interest, do people have an issue because geneer was the one who posted? It's a shame if that's the case.

I agree but unfortunately he reaps what he sows. He is often found with his metaphorical fingers in his ears singing "la la la I cant hear you" so it is hardly surprising when his rivals come on threads of his and return the favour.
My advice? Take what you want from the thread and leave 'em to it. You'll get no sense from either group unless you're definitively on "their" side.

vivatifosi

JonnyBravo wrote: »

I agree but unfortunately he reaps what he sows. He is often found with his metaphorical fingers in his ears singing "la la la I cant hear you" so it is hardly surprising when his rivals come on threads of his and return the favour.
My advice? Take what you want from the thread and leave 'em to it. You'll get no sense from either group unless you're definitively on "their" side.

Tis a shame Jonny as its interesting. I don't even know who is on who's side and when people start calling each other sockies I haven't got a clue what they are talking about. I'm not interested in sides tbh, however I've taken what I want from this thread so will def leave people to it.

DervProf

Dan: wrote: »

What's the point in this?

I was wondering the same when someone (I think it was Hamish) started a thread, highlighting a newspaper frontapge headline about house prices "surging" over the past decade.

And then I quickly realised that the point was that the post, and the headline, were a simple case of property ramping.

Now, you might suggest that geneer is "doom mongering", by starting this thread. I suggest that he has pointed out some rather interesting statistics. Maybe there's no point, but I think there's more of a point than posting the headlines of some VI newspaper.

IveSeenTheLight

geneer wrote: »

http://www.myintroducer.com/view.asp?ID=8134

Very interesting thank you.
As always, it's good to understand the context of the data.
There are some fantastic headline stats here.

- £55,822 is the average household debt (including mortgages)

I'm surprised that given this includes mortgage debt, the figure is not higher.
With the average property circa £162k, there is a lot of equity in the market.

- 1,775 people are made redundant daily

Hmmmmm, over what period?
Over a year that's 647,875
Certainly it looks like in 2009 it surged, but it seems to have plateuxed since 2010

- Every 14.6 minutes a property is repossessed

In this context, it naturally sounds like a massive number.
It's roughly 98 properties per day or 36000 per year.
Another way of looking at it is that it's approx 0.12% of the market per year.

- £1,278,000,000 is the total value of all purchases made using plastic cards today

Again, seems quite a large value, but in context of population it's approx £19.66 per person (ok, I know children are not credit card holders, so it would be approx £25.56 per UK adult)

Thrugelmir

IveSeenTheLight wrote: »

With the average property circa £162k, there is a lot of equity in the market.

Equity is only ever notional. Hard to see how much of this can be released with the current state of global capital markets. The underlying trend is for net mortgage lending to continue to contract.