The Banks really are getting tough

Rochdale_Pioneers

This is the quandry we face as a country. On the one hand personal debt is spiralling out of control, with the government forecasting that its budget cuts will make this even worse. We're told that debt = bad, so banks are offering less credit

On the other hand we need to keep the amount of money in circulation up, and that means letting people borrow, invest, have disposable income to spend etc. Cut off the credit and investment funding, remove large chunks of disposable income and the economy tanks.

I get that a reduction in debt is a Good Thing. But not this much, and not a budget plan that cuts government debt by massively increasing personal debt. OK so Cameron cut out the hectoring lecture about personal debt from his conference speech. But he did write it - doesn't he get how lecturing people for getting into debt as demanded by his own budget is slightly cheeky?

purch

lemonjelly wrote: »

1 anecdote does not equal data.

In the World of MSE it equals FACT :eek:

grizzly1911

Kennyboy66 wrote: »

You do realise that consumer credit lending to individuals is less than it was 5 years ago and the amount owed on credit cards less than it was 6 years ago.

AS a PP has said write offs and constraining new lending will have an affect.

Also the lending profile of that debt will no doubt have changed, with those that can, paying down the debt.

I would guess that the hardcore debt, those that are having difficulty servicing it, is now a bigger proportion of that outstanding.

Thrugelmir

Rochdale_Pioneers wrote: »

On the other hand we need to keep the amount of money in circulation up, and that means letting people borrow, invest, have disposable income to spend etc. Cut off the credit and investment funding, remove large chunks of disposable income and the economy tanks.

The key word is invest. How much of the UK's disposable income has been \ is wasted away on overpriced products and services.

In the boom years. BMW's biggest export market was the UK. Sums it nicely. Image seemingly to be a facet of everyday life.

MrRee_2

More people are paying down debt than increasing it - FACT.

Money streams are getting released, people are getting to spending again.

Going4TheDream

Big_Hairy_Spider wrote: »

I

It irks me just to put something on the credit card to get the section 75 cover!

Surely it is only irksome if you don't pay off the balance in full every month, otherwise it is a sensible option to get the extra protection that other methods of paying don't cover?

Rochdale_Pioneers

MrRee wrote: »

More people are paying down debt than increasing it - FACT.

Money streams are getting released, people are getting to spending

they might be paying down debt, but they're not spending it.. Consumer confidence on the floor, retail volumes depressed and getting worse.

MrRee_2

Round here people are spending it like it will be their last .......................

grizzly1911

Thrugelmir wrote: »

The key word is invest. How much of the UK's disposable income has been \ is wasted away on overpriced products and services.

In the boom years. BMW's biggest export market was the UK. Sums it nicely. Image seemingly to be a facet of everyday life.

GB is like a leaky bucket with more holes than inflow.

They don't need to be over priced necessarily, just unnecessary will do - just time to nip off for my iphone 4 or 3D TV, or humungous megapixel camera when I already have a %MP which is more than adequate for Jo Public etc. For example just go into your nearest PC World/Currys, most of the ground floor (non white goods) is unnecessary.

ruggedtoast

homelessskilledworker wrote: »

AT LAST!!

Yesterday while on a building project I witnessed a conversation with one of the heating engineers who I have know for the last 20 years having a very irritable and angry conversation with his bank. They were talking on and off all morning until the last conversation ending with his phone getting hurled across a table.

The bank will not give him an increased overdraft or extension to his loan, in short thats your lot mate.
I know this chap well, lives for today and lets put it all on the credit card. He has two BTL properties which seem to be a never ending source of frustation for him.

Reading between the lines I get the impression he is trying just to hold out until the economy turns, and I do not think he is the only one. Nobody wants to be the first one one to go under.

I watch this type of stuff with great interest, I think there is a wave of people out there that are just clinging on, I am sure that there are so many people thinking if I can just see this year out the next will be so much better.

2012 I think is going to be the year where personal debt and lack of growth along with the worsening credit crunch is going to finally expose how far under many people are.

I'm sure he'd be touched by your concern.