Cautious consumers pay off debt

wotsthat

http://www.bbc.co.uk/news/business-17487150

Cautious consumers' repayments on credit cards, loans and overdrafts outstripped new borrowing by £305m in February, figures show.

"Businesses and households continue to be cautious about their finances in the face of difficult economic times and this shows up in a reluctance to take on new credit, or where possible, seeking to pay back bank borrowing," said BBA statistics director David Dooks.

The long slow consumer debt repayment continues.

So in spite of the doom and gloom and statements that the consumer is at the edge of a financial precipice they're managing to pay down debt.

There must be some bad news in this somewhere - oh yes it could be deflationary but I suspect the BoE and government will take care of this.

RenovationMan

Good to see people sorting out their finances while rates are low. Hopefully most will be in a better financial position once we exit the financial crisis and BoE rates start to climb.

I'm sure everyone on here will be pleased with this news.

Graham_Devon

Of course this is good news.

But it does have a knock on effect, as Hamish keeps telling us, of less spending in the economy and therefore less growth.

It was, however, inevitable. The debt had to be paid back at some point.

wotsthat

Graham_Devon wrote: »

Of course this is good news.

But it does have a knock on effect, as Hamish keeps telling us, of less spending in the economy and therefore less growth.

It was, however, inevitable. The debt had to be paid back at some point.

I thought for a minute someone had hacked your account until I saw why the good news was really bad news in disguise.

Graham_Devon

wotsthat wrote: »

I thought for a minute someone had hacked your account until I saw why the good news was really bad news in disguise.

What do you mean bad news in disguise?

wotsthat

Graham_Devon wrote: »

What do you mean bad news in disguise?

Was that a rhetorical question?

Graham_Devon

wotsthat wrote: »

Was that a rhetorical question?

No, I just don't know how you are suggesting I disguised bad news?

If you mean reduced spending, would you disagree? It's obvious ths is happening....so seems the crime maybe mentioning it rather than simply ignoring it?

homelessskilledworker

wotsthat wrote: »

http://www.bbc.co.uk/news/business-17487150





The long slow consumer debt repayment continues.

So in spite of the doom and gloom and statements that the consumer is at the edge of a financial precipice they're managing to pay down debt.

There must be some bad news in this somewhere - oh yes it could be deflationary but I suspect the BoE and government will take care of this.

Do you actually believe anything you post wotstit:)

Personal debt in the UK is still as high as it ever was, higher than £1.5 trillion now. The reason overdrafts and credit cards are being paid off though is because banks have become ruthless and are pressing the old debt junkies.

You seem to think that people paying off interest is the be all and end all, the capital that so many people owe is the problem, and one day it will need paying off. And you seem to forget that in three years we will be at the point where house prices would have stood still for ten years, less in real terms. HPI is not going to save any over indebted homeowners.

"paying off debt":rotfl:... you crack me up

globalds

It is working very well for the mortgage overpaying community.

The more we overpay ..the longer interest rates stay low ..

homelessskilledworker

http://www.debtsimple.co.uk/uk-debt-statistics.shtml

Total UK personal debt £1.45 Trillion

Oh yes!!, we are really getting to grips with personal debt

[Deleted User]

RenovationMan wrote: »

Good to see people sorting out their finances while rates are low. Hopefully most will be in a better financial position once we exit the financial crisis and BoE rates start to climb.

I'm sure everyone on here will be pleased with this news.

but in relation to base rate of 0.5% most comsumer debt isnt at low rates,i think the average cc rate is now 17%+(they have to finance all those card tarts some how),store cards can still cost 30% and loans 7%+
even mortgages in relation to base rates arent that low,20 years ago the mark up was 1.5% its more like 3% now and rising