debt statistics

michaels

geneer wrote: »

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

Quick calcs suggest that personal debt is increasing by £1.86 per day (£29k * 2.3%)
Whereas the govt is borrowing £18 per day for each citizen (111.5bn/60m)

Debt increasing by 2.3% per annum means personal debt is actually falling by 2% per annum in real terms with rpi running at over 4% and even in income adjusted terms it is merely standing still.

As ISTL points out the repossession figures are not abnormal - in an economy there are always going to be some who for whatever reason - loss of job, change in circumstances, !!!!lessness will end up being repossessed. Similarly whilst we are in/close to recession there will be an above average number of redundancies but even during a boom some industries will do well and others will struggle as fashions change and technology advances.

Edit: Forgot about the spend on plastic thing - why on earth is this relevant? - I try and do all my spending on plastic as it is more convenient and earns cashback, it has absolutely nothing to do with borrowing money.

macaque wrote: »

Good post! This bit particularly caught my eye:



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).

£60bn pa is no going directly to the financial sector - it is paying interest to savers and dividends to pensioners - not disappearing in to some hole never to be seen again.
This links back to the thread on people being unable to think critical and just believing what ever they see on youtube.

The OP posts useful stuff but in this case it is probably worth trying to draw some conclusions and see whether the evidence presented supports them rather than just posting up some apparently 'frightening' debt figures that on closer examination are no different from normal.

Dan:_4

Thrugelmir wrote: »

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.

The majority do not wish to release equity.

Dan:_4

All this debt statistics talk is laughable. - Most of this is controlled debt i.e debt on credit card that is paid in full each month.

Kennyboy66

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.

They are great stats and published monthly

http://www.creditaction.org.uk/helpful-resources/debt-statistics.html

The worrying thing from my view is that the vast increase in debt powered the whole economy not just the housing market until approx Aug 2007.

It's just a personal view, but I don't believe the economy can be stable if personal debt is greater than annual GDP.

IveSeenTheLight

Thrugelmir wrote: »

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.

Who mentioned anything about releasing the equity?
It certainly helps when discussing NE, distressed sellers and reposessions though.

michaels

I have debts (mortgage) of 4x my income plus about 50% of my income on credit cards.

However I have savings of more than this but keep the debt 'stoozed' as the return on the savings is greater than the interest on the debt - however I must be extremely unstable by your definition.

Kennyboy66 wrote: »

They are great stats and published monthly

http://www.creditaction.org.uk/helpful-resources/debt-statistics.html

The worrying thing from my view is that the vast increase in debt powered the whole economy not just the housing market until approx Aug 2007.

It's just a personal view, but I don't believe the economy can be stable if personal debt is greater than annual GDP.

Thrugelmir

IveSeenTheLight wrote: »

Who mentioned anything about releasing the equity?

I assume you view property equity as one of the assets on your personal balance sheet.

Thrugelmir

michaels wrote: »

£60bn pa is no going directly to the financial sector - it is paying interest to savers and dividends to pensioners - not disappearing in to some hole never to be seen again.

Securitised UK mortgage debt was sold internationally on the wholesale money markets. Much of the debt no longer sits on the balance sheets of UK lenders.

kabayiri

michaels wrote: »

I have debts (mortgage) of 4x my income plus about 50% of my income on credit cards.
..

To keep to you as the example, if your income had not progressed over a 5 year period, and yet next year you had 60% of income on credit cards, and the year after 70% of income on credit cards, then that would be sign of a changing pattern worthy of further examination.

So I would suggest a snapshot in time is of limited value, but looking at trends is more useful. To undermine my argument it is rare for all the other variables to stay still !

Lies, damn lies and statistics eh?

IveSeenTheLight

Thrugelmir wrote: »

I assume you view property equity as one of the assets on your personal balance sheet.

Were discussing the wider picture than my personal and business accounts.