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UK family debts increase by nearly 50% in a year
Comments
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RenovationMan wrote: »Well the theory is the same, namely that just looking at debt in isolation is worthless unless you also look at what the debt was used for. In my case I have a large mortgage debt, which is secured landing as you mentioned. However I also often have anything upto £3k on my credit card due to company travel expenses, I have stoozed money on cards in the past, I have arranged 0% loans in order to keep our credit rating ticking over (keeping my savings in the bank), I have even borrowed money to buy cars (many years ago). In all of these cases my assets have exceeded my debts and all debts were used to increase my assets. I doubt that I am alone in this.
That said, I know that a lot of people are struggling, but let's temper our moral outrage and frothing by making sure we're not being manipulated too much my the press and various VI groups.
But the bottom line RenoMan is, if this report is accurate, is that personal debt is increasing, household income in general is falling, therefore as a country that is already heavily indebted both nationally and personally this does not bode well for future growth plans.0 -
"Insecurity" takes on a whole new meaning when people feel the need to spend all of their money on tosh. They're insecure all right - one gust of wind and they fall into the gutter.
But they arent though. One gust of wind, and you will have to pay their mortgage, pay to feed their children, and to keep them. So why would they bother?0 -
shortchanged wrote: »But the bottom line RenoMan is, if this report is accurate, is that personal debt is increasing, household income in general is falling, therefore as a country that is already heavily indebted both nationally and personally this does not bode well for future growth plans.
It's hard to know the truth because other reports show that personal debt is falling. Probably best to just sort one's own finances out and not worry/crow about other people's.0 -
RenovationMan wrote: »It's hard to know the truth because other reports show that personal debt is falling. Probably best to just sort one's own finances out and not worry/crow about other people's.
Other reports are not focusing on one group of people.
This report is focusing no one group of people. Therefore it states "family debts increase".
No one is worrying or crowing for pities sake. This article is very much relevant to this part of the forum.0 -
Graham_Devon wrote: »Other reports are not focusing on one group of people.
What? Not any of them? Goodness, you must read a lot of reports to be able to make that statement with any accuracy!0 -
Well its funny you say that actually, the person I was talking about does indeed have an interest only mortgage.
I told you.
If you ever come across people in financial difficulty and they have a mortgage ask them if it is an interest only mortgage.
9 times out of 10 it will be.
This doesn't mean that everyone with an IO mortgage is in financial difficulty."The problem with quotes on the internet is that you never know whether they are genuine or not" -
Albert Einstein0 -
I told you.
If you ever come across people in financial difficulty and they have a mortgage ask them if it is an interest only mortgage.
9 times out of 10 it will be.
This doesn't mean that everyone with an IO mortgage is in financial difficulty.
The problem is if you start off on an IO mortgage, if the sh*t hits the fan then there is often very little room for manouever. Whereas if you were on a repayment mortgage, if you are facing tough times there may be some scope to go onto IO for a short period to allow some breathing space.0 -
Isn't bankruptcy fairly short-term in the UK (one year)? I think a lot of people build up debts knowing that if they can't pay them off, they can just go bankrupt, have a year of pain and then do it all over again.0
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RenovationMan wrote: »What? Not any of them? Goodness, you must read a lot of reports to be able to make that statement with any accuracy!
No, the reports you talk of. Hence quoting you directly to answer what you had said.0 -
Isn't bankruptcy fairly short-term in the UK (one year)? I think a lot of people build up debts knowing that if they can't pay them off, they can just go bankrupt, have a year of pain and then do it all over again.
No, you are looking at a good 6 years or so of trashed credit history.0
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