Nine million in 'serious' debt across the UK

mystic_trev

So much for Hull being the City of Culture, it's also the City of debt!

% of population struggling with debt

Hull 43.1%
Nottingham 41.2%
Manchester 41.1%
Knowsley 40.7%
Liverpool 40.6%

http://www.bbc.co.uk/news/business-25108891

vivatifosi

Does anyone else find the metrics for this slightly odd?

To qualify as such, people had to feel that their debt amounted to a "heavy burden", or else they had to have missed out on repayments in three of the last six months.

Surely feeling a heavy burden will depend on the person and their attitude to risk. Someone who is very worried about debt may feel heavily burdened, whereas someone else with more of a devil may care attitude won't necessarily feel burdened at all; even with the same level of salary, outgoings or debt.

The second metric is far more worrying. I'd consider missing one month's repayment serious, but not being able to meet bills three months in a six month period. That's really concerning. I'd like to know how many people meet that condition.

It's strange that they added two totally different criteria together like this. I'd much rather see a chart for people who missed bills in one month in the last six, two months and three months; not mixed with a perceptual metric.

Rinoa

From the CML 2 weeks ago:


http://www.cml.org.uk/cml/media/press/3731

The latest survey results from the Council of Mortgage Lenders show a further fall in the number of mortgages in arrears, as well as the number of repossessions, in the third quarter of the year.
The proportion (and number) of borrowers behind with their payments fell across each of the arrears bands. A total of 149,400 mortgages, representing 1.33% of the entire stock of mortgages, had arrears equivalent to more than 2.5% of their mortgage balance at the end of the third quarter. This was down from 154,900 (1.38%) in the second quarter, and 159,100 (1.4%) in the third quarter of 2012.

So, debt rates small, and fewer people behind with their mortgage than 12 months ago.

lemonjelly

vivatifosi wrote: »

Does anyone else find the metrics for this slightly odd?

To qualify as such, people had to feel that their debt amounted to a "heavy burden", or else they had to have missed out on repayments in three of the last six months.

Surely feeling a heavy burden will depend on the person and their attitude to risk. Someone who is very worried about debt may feel heavily burdened, whereas someone else with more of a devil may care attitude won't necessarily feel burdened at all; even with the same level of salary, outgoings or debt.

The second metric is far more worrying. I'd consider missing one month's repayment serious, but not being able to meet bills three months in a six month period. That's really concerning. I'd like to know how many people meet that condition.

It's strange that they added two totally different criteria together like this. I'd much rather see a chart for people who missed bills in one month in the last six, two months and three months; not mixed with a perceptual metric.

I understand your point. It's a difficult one. Setting up an amount of debt as constituting serious debt is out, as geographically there will be large fluctuations (even within a particular city). I also think it is beneficial to examine the impact on people with debts - I see people with 2 or 3 grand of debt who are absolutely besides themselves with shame & fear about the consequences, yet to me it seems like small fry in comparison with a lot of other people I see affected by debt issues.
Then you've got the hidden part of the iceberg. For example, I have a friend who constantly lives in their £1500 overdraft, & doesn't even see this as debt. It is "normal" & has been for years (despite being on in the region of 40kpa!)

Perceptions of debt are equally valid & probably need to be taken into account if we're examining the impact of debt on the UK.

Interesting that we're talking about almost 20% of the population here, yet masses of the funding & support for people with debt issues has been cut though.

grizzly1911

mystic_trev wrote: »

So much for Hull being the City of Culture, it's also the City of debt!

% of population struggling with debt

Hull 43.1%
Nottingham 41.2%
Manchester 41.1%
Knowsley 40.7%
Liverpool 40.6%

http://www.bbc.co.uk/news/business-25108891

One of the criteria isn't it? Regeneration opportunity.

wotsthat

vivatifosi wrote: »

Does anyone else find the metrics for this slightly odd?

To qualify as such, people had to feel that their debt amounted to a "heavy burden", or else they had to have missed out on repayments in three of the last six months.

Smells like bias or an attempt to create a headline.

They do clarify in the report itself though. It's about 50:50 between those whose serious debts are due to non-payment and those who are making payments but feel bad about their debt.

Only skimmed the report. Slightly hand-wringing but not a bad read for later. Based on 5000 respondents - don't know how they were selected.

https://www.moneyadviceservice.org.uk/en/static/indebted-lives-the-complexities-of-life-in-debt-press-office

Loughton_Monkey

Overheard at the MAS Government Quango Monthly Board Meeting:

Chairman: "Now we come to the issue of funding. I've had a letter from the Treasury telling us that funding is going to be cut next year.."

[Groans, mumbles, and jeers rumble around the room. Words such as "Intolerable", "Unjust", and "Bankers" are thrown into the room...]

Finance Chief: "As much as I hate it, I find it hard to argue. Debt is declining rapidly. Growth is coming back. People are starting to get on their feet again. There are green shoots. Our days are numbered...."

[Shouts of Payday loans, payday loans....]

Chairman: "That's a hope. Maybe we'll get lots of business from that. But sadly the government seem to be dealing with it. Can't rely on that...."

Marketing Director: "Well I've been giving some thoughts to it. Maybe it's not all down the pan, provided we can con them... er... sorry... con-vince them that we need to double our resources....

Chairman: "Carry on..."

Marketing Director: "I was lunching... er... I mean talking to Experian. Seems they do surveys. Very expensive, of course, but that's because these clever monkeys know how to frame the questions, you see..... basically, you interview someone. Tell them you're doing a survey because debts are a huge problem. Then ask "Are debts a problem?". He reckons we could get 8 or 9 million people expressing at least mild discomfort, and then we can spin that round and explain why these poor wretches aren't coming in here."

Chairman: "Brilliant. Then I can take that report round to Number 11 screaming blue murder. Tell them I need at least 300 more staff up and down the country. Tidal wave of clients coming in.... egg on face for the government if we can't cope..."

Operations Director: "We might even get another 20 branches out of this! Means I'll have to be driving like a blue assed fly up and down the country.... er... which reminds me... you know, sir, my car is getting up to 2 years old... seems those AMG's are starting to sail out of the showrooms... should be able to get a good deal....

Chairman: "OK. It's agreed. Go ahead with the research. Keep it all hush hush for now. We'll call it 'Project Wonga'...."

[The board retires, for large gin & tonics and an extremely long lunch....]


https://www.moneyadviceservice.org.uk/en/static/indebted-lives-the-complexities-of-life-in-debt-press-office

vivatifosi

lemonjelly wrote: »

I understand your point. It's a difficult one. Setting up an amount of debt as constituting serious debt is out, as geographically there will be large fluctuations (even within a particular city). I also think it is beneficial to examine the impact on people with debts - I see people with 2 or 3 grand of debt who are absolutely besides themselves with shame & fear about the consequences, yet to me it seems like small fry in comparison with a lot of other people I see affected by debt issues.
Then you've got the hidden part of the iceberg. For example, I have a friend who constantly lives in their £1500 overdraft, & doesn't even see this as debt. It is "normal" & has been for years (despite being on in the region of 40kpa!)

Perceptions of debt are equally valid & probably need to be taken into account if we're examining the impact of debt on the UK.

Interesting that we're talking about almost 20% of the population here, yet masses of the funding & support for people with debt issues has been cut though.

I think there's room for both measures, I just don't want to see them mixed together as they are not like for like comparisons yet are being treated as either/or.

Thrugelmir

Perhaps it 's reflection of squeezed household incomes. The effect of low interest rates is wearing off for those with mortgages. While for others rents remain high. Yet the cost of basics food, energy etc march relentless upwards.

With many credit cards. Merely repaying the minimum balance every month, means that it would take a borrower 30 to 40 years to clear the debt.

photogeek

And the current government is hoping that debt fuelled consumption will grow the economy sufficiently to get re-elected... They even let students take on even more debt than ever before.

Thrugelmir

photogeek wrote: »

They even let students take on even more debt than ever before.

Education is worth the expense. As the likelihood of earning more is increased.

Different matter to debt built on buying BMW's, kitchens, bathrooms, holidays and an endless amount of imported product from China.