UK debt crisis

Graham_Devon

RenovationMan wrote: »

I'm always amazed when I see that the total household debt INCLUDING MORTGAGE is only £55,816. It's so low.

My own total household debt is currently £250k including mortgage. :eek:

It' £125,000 for those who actually hold the debt.

I.e. if you remove those people from the figures who hold no det at all.

pqrdef

nickj wrote: »

i know 2 r 3 ftb's who have an interest only mortgage and have no way of paying the capital back

Have they demolished their houses?

nickj_2

pqrdef wrote: »

Have they demolished their houses?

no , i think they are just hoping that the price of their house goes up enough to pay off the mortgage . in other owrds praying for a miracle

homelessskilledworker

RenovationMan wrote: »

I'm always amazed when I see that the total household debt INCLUDING MORTGAGE is only £55,816. It's so low.

My own total household debt is currently £250k including mortgage. :eek:

Scary RM

Mine is surplus £77k:)

Thrugelmir

nickj wrote: »

no , i think they are just hoping that the price of their house goes up enough to pay off the mortgage . in other owrds praying for a miracle

Tell them to take a look at the Debt Free Wannabe board.

Sometimes praying by for a miracle isn't enough.

chewmylegoff

RenovationMan wrote: »

I'm always amazed when I see that the total household debt INCLUDING MORTGAGE is only £55,816. It's so low.

My own total household debt is currently £250k including mortgage. :eek:

it's not that surprising given that only half the properties in this country have residential mortgages on them.

pqrdef

So what's the answer to this debt crisis then? How do we get people to start borrowing more money?

Perhaps Tesco should do buy now pay later on groceries. That would perk up their sales and stimulate the economy.

PaulF81

Thing is, although we have 200K debt now, we have actually made more from the property in the past 12 months than have paid in interest. We rented out the annexe we dont use, and after tax, are still making money at the moment. We have deleveraged like a maniac this year, and even with expected (conservative) interest rate rises factored in, we will never have a minimum monthly payment above our initial payment. In fact, the lady on the fone coundnt believe we had managed to pay off 14% of the mortgage, at the start of the loan, in only 20 months. And we are due to further reduce the mortgage by another 12% in the next 9 months alone. Not all debt is bad, ours is backed by an accumulating asset with the significant work being done to the house.

Thrugelmir

pqrdef wrote: »

So what's the answer to this debt crisis then? How do we get people to start borrowing more money?

First issue is to how to reduce the debt burden to a level supportable by the banks.

PaulF81

pqrdef wrote: »

So what's the answer to this debt crisis then? How do we get people to start borrowing more money?

Perhaps Tesco should do buy now pay later on groceries. That would perk up their sales and stimulate the economy.

We dont. We create one great big bad bank, Haircut the lot, QE away the rest frittered away cash (mainly spent on junk) then bring back debtors prison for anyone getting back into debt after having used said bad bank.

We give fingers to the chinese, who did nothing about their trade surplus, we get rid of the debt drag on the economy and we end up back with Moral Hazard.