debt statistics

Thrugelmir

RenovationMan wrote: »

I can't imagine that this figure takes into account people's equity, savings and investments, which in many cases will outweigh their debt. I'm sure the average household debt would be far less or non-existent if it included people's wealth.

More people now live in low income households than the early 1980's. Wealth distribution in the UK is very uneven. Compared to countries such as France, Germany and the Netherlands.

RenovationMan

Thrugelmir wrote: »

More people now live in low income households than the early 1980's. Wealth distribution in the UK is very uneven. Compared to countries such as France, Germany and the Netherlands.

I assume the figure is an average of all mortgages, regardless of household income, which would revert to a positive amount if the average of all assets were included.

My point is that these sorts of statistics, similar to the average house price/average salary stats argued about on here, are pretty useless. Surely they could have gained better ground politically if they looked at the finances of low income families rather than the UK as a whole, especially as the average figures look quite encouraging.

Thrugelmir

RenovationMan wrote: »

My point is that these sorts of statistics, similar to the average house price/average salary stats argued about on here, are pretty useless. Surely they could have gained better ground politically if they looked at the finances of low income families rather than the UK as a whole, especially as the average figures look quite encouraging.

While you may consider them useless. An alternative view and to put them in to context. Is that the average UK consumer is over twice indebted that of any other country in Europe.

So a real drag on UK economic recovery. As money is spent on debt servicing rather than physical goods and services, and correspondingly tax revenues generated there from.

IveSeenTheLight

Thrugelmir wrote: »

While you may consider them useless. An alternative view and to put them in to context. Is that the average UK consumer is over twice indebted that of any other country in Europe.

So a real drag on UK economic recovery. As money is spent on debt servicing rather than physical goods and services, and correspondingly tax revenues generated there from.

With most of that debt being mortgage debt, where most areas see the interest on that debt as less than comparable rents it makes sense to incur the debts relative to the lifetime of servicing rent.

It would be interesting when comparing the UK to Europe to consider the Lifetime costs.

Thrugelmir

IveSeenTheLight wrote: »

With most of that debt being mortgage debt, where most areas see the interest on that debt as less than comparable rents it makes sense to incur the debts relative to the lifetime of servicing rent.

That's a personal viewpoint. As one would look at it as an individual. (not inferring its yours). Which I agree with.

The issue for the UK as a whole is where the cash is going, both capital and interest. As very little is recirculating back into the UK economy.

RenovationMan

Thrugelmir wrote: »

While you may consider them useless. An alternative view and to put them in to context. Is that the average UK consumer is over twice indebted that of any other country in Europe.

So a real drag on UK economic recovery. As money is spent on debt servicing rather than physical goods and services, and correspondingly tax revenues generated there from.

But this is exactly my point. The stats are useless because it might be the case that the average UK consumer has over twice the assets of those of any other country in Europe. If the stats just show debt and don't show wealth, they are meaningless, as you have just proven.

Personal debt in Mongolia is probably a fraction of personal debt in the UK. Does that mean that the average Mongolian is better off financially than the Average Brit? No, not when personal assets are added to the mix.

IveSeenTheLight

Thrugelmir wrote: »

That's a personal viewpoint. As one would look at it as an individual. (not inferring its yours). Which I agree with.

The issue for the UK as a whole is where the cash is going, both capital and interest. As very little is recirculating back into the UK economy.

Surely it's jsut a timeline issue then.
If people spend less becoming an owner then they have more future disposable income to spend.
It's not a personal biew, it's demonstrated by the debt figures shown in this thread.
It would be interesting to see how much earlier owners are becoming mortgage free over the years.
I certainly know people that continued to pay a mortgage for many years when they could have paid off earlier.

It's not like we have to wait a generation either.

My F-I-L retired this year and he has far more disposable income in retirement than his generation before.

quick google search
http://www.lovemoney.com/news/property-and-mortgages/mortgages/234/when-will-you-have-paid-off-your-mortgage

Lincoln's research indicates that the average age homeowners can expect to be mortgage free is 56½. Some of us will have got rid of that debt a lot sooner, with nearly half a million of us paying off our mortgages by 45. However, a whopping 1.6 million of us do not expect to clear our mortgage debt until 65, and 309,000 will still be making payments when we are blowing out the candles on our 70th birthdays!

Overpay
An extra £50 paid each month into a £100,000 mortgage with a 25-year term at 6% APR could save you over £16,000 and mean you'd have paid it off almost four years earlier. Overpaying by £100 could save you over £27,000, and mean you'd own your home in just over 18½ years!

when I started out I had a 25 year mortgage.
After the three year fix, I remortgaged for only 20 years.
Again after the three years, I remortgaged to 15 years.

If you can increase your mortgage payments you pay less overall interest and in turn have more disposable income to spend.

geneer

Cleaver wrote: »

No one gives a sh*t about which one of you is right about house prices in Edinburgh. I'd bet that ISTL is the one who is right though. Not that it matters.

:rotfl:Yeah. Not that it matters to you.

geneer

Cleaver wrote: »

No one gives a sh*t about which one of you is right about house prices in Edinburgh. I'd bet that ISTL is the one who is right though. Not that it matters.

Sorry Cleaver. Time for some enhanced understanding.

SCOTSMAN 7th OCTOBER
Capital house prices slip back two years - and there's worse to come
By Jeff Salway



HOUSE prices in Scotland's capital have fallen to 2009 levels after the latest falls wiped out the gains made last year.
The average recorded house price in Edinburgh was more than £13,000 lower in the three months to the end of September than in the same period last year, according to the Edinburgh Solicitors' Property Centre (ESPC).

CountingPenniesClaire

does anybody know what the ratio of owners : renters is? ie. 50% population own (with or without mortgages) vs 50% population rent