Cautious consumers pay off debt

Emy1501

RenovationMan wrote: »

We increased and now we're reducing our debt. We had something like £40k of mortgage debt up until 2010 and we then increased the debt to £300k when we bought our dream home - gambling on low interest rates being around for a decade. We've reduced that down by £50k and hope to reduce it by another £20k by the end of this year.

The trouble with just looking a debt levels is that no assets are taken into consideration. We owe £250k and so are massively over the average debtor. Are we knocking on bankruptcy's door?

No, because we can easily maintain our debt repayments and if all else fails, we actually have more assets than debt. I doubt that we are in the minority in this situation.

I assume though that you were not struggling to pay debt at the end of 2007 though?

My question is there were a fair few at the end of 2007/2008 with debts worth more than assests and the question is has this reduced ie how many have more debts than they have assests now compared to 2007 and how many of these people were struggling to pay the debt repayments in early 2008 and what have these people done to improve their situation before rates start to rise again.

wotsthat

Emy1501 wrote: »

For me we need to look at the those struggling and see whether their situation has improved over the last 3 years because if it has not then we are in no real better position than before other then the richer getting richer and the poor getting poorer.

There's nothing stopping you or anyone else doing some research and analysis to see whether the situation has improved in the last 3 years for poor people.

homelessskilledworker

wotsthat wrote: »

You planning on buying a house with cash?

I don't think I will have enough, no.
Nothing is black and white wotstit, I am not ruling out all lending as bad.

FTBFun

homelessskilledworker wrote: »

Do you know many five year olds with £25k debts, and how about more than half the population who have no mortgage, and the many millions who live in the black, the rest then hold the £1.5 Trillion debt, you and Ting tong being one of them probably, how much did Ting Tong cost you?

Technically I owe about £140,000 (outstanding mortgage balance roughly) but still live in the black as my incomings > outgoings. You're really mixing up quite a few concepts here, I can't quite make out what you're trying to say.

homelessskilledworker

wotsthat wrote: »

Well Foxy, that looks like you are saying that you don't have any evidence you can present to back up what you've said. Your braincell seemed not to be able to get past £1.5tn.

Well wotstit, I have backed up far more than you, you have made moronic generlisations such as £1.5 trillion is no big deal and that it is spread between the 60 million UK population.

If you believe that over half of UK freehold is owned outright

If the under 17 over 70 hold little debt

If there are at least millions of UK citizens that are in the black and better

then I would say that I have provided some evidence and you just continue to live in fairy land

Graham_Devon

wotsthat wrote: »

There's nothing stopping you or anyone else doing some research and analysis to see whether the situation has improved in the last 3 years for poor people.

What's you're beef today?

RenovationMan

Emy1501 wrote: »

I assume though that you were not struggling to pay debt at the end of 2007 though?

No, we got ourselves debted up after the credit crunch.

Emy1501 wrote: »

My question is there were a fair few at the end of 2007/2008 with debts worth more than assests

That's more of a statement than a question. What do you mean by 'fair few'? A large majority of the UK population, a small minority?

Emy1501 wrote: »

and the question is has this reduced ie how many have more debts than they have assests now compared to 2007 and how many of these people were struggling to pay the debt repayments in early 2008 and what have these people done to improve their situation before rates start to rise again.

Again, it depends on how large 'fair few' represents. I'd imagine though that the vast majority of mortgage holders were in positive equity and more than able to meet their debt repayments. However, unless you supply figures to show what 'fair few' means and show figures on how much debt this section of the population has repaid since 2007, we'll always be in the dark.

homelessskilledworker

FTBFun wrote: »

Technically I owe about £140,000 (outstanding mortgage balance roughly) but still live in the black as my incomings > outgoings. You're really mixing up quite a few concepts here, I can't quite make out what you're trying to say.

I am quite willing to except that someone is in the black if they own property that has equity, but there are still a lot of grey area there, you still have a huge mortgage.

But the UK logic these days is that life make total sense as long as all the debts are less than the perceived value of property. I think that this thought pattern plays much in the governments thinking, for as long as people have illusionary wealth and are able to brag about their house price down the pub they will continue to be subservient and willing wage slaves, the minute mass properties start losing more than 30% of their value then I think this country will be in big trouble.

Some of the Bulls are right when they say that the government will do anything to prop up the housing market, but when the day comes when there is nothing they can do, thats when it will get nasty.

Graham_Devon

RenovationMan wrote: »

However, unless you supply figures to show what 'fair few' means and show figures on how much debt this section of the population has repaid since 2007, we'll always be in the dark.

Well you might be left in the dark.

The rest of us however can relate to what's being said and not need everything laid out in front of us.

A fair few simply means a group of people relevant to the discussion.

RenovationMan

Graham_Devon wrote: »

What's you're beef today?

"Here comes Graham to save the dayyyyyyy!"