1.6m families in 'extreme' debt

in Debt-Free Wannabe
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Millions are spending at least 40% of their wages on debt repayments, research has found...
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'1.6m families in 'extreme' debt'
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  • indesisivindesisiv Forumite
    6.4K Posts
    Part of the Furniture 1,000 Posts Combo Breaker Debt-free and Proud!
    The problem is that people don't think about buying things on credit until they get to a stage when they can't pay something.
    This board wouldn't be here if people stopped doing that.

    What is the best way to get everyone to have their lightbulb moment earlier?
    “Time is intended to be spent, not saved” - Alfred Wainwright
  • "What is the best way to get everyone to have their lightbulb moment earlier?"


    Educating children and young people about borrowing and debt at school and college and how to manage your money and budget in general.
    Responsible bank accounts and loaning of money.
    Curbing how much can be borrowed, amount of accounts that can be held.
    Develop a culture of pay your own way and saving.
    All of the above and no doubt more, so that light bulb moments are nolonger necessary in many cases.
  • Muttipops wrote: »
    "What is the best way to get everyone to have their lightbulb moment earlier?"


    Educating children and young people about borrowing and debt at school and college and how to manage your money and budget in general.
    Responsible bank accounts and loaning of money.
    Curbing how much can be borrowed, amount of accounts that can be held.
    Develop a culture of pay your own way and saving.
    All of the above and no doubt more, so that light bulb moments are nolonger necessary in many cases.

    I agree with the education part and the savings part but not the rest of your suggestions because they will unfairly disadvantage people who can correctly manage their money.
    The banks are already strict enough on their lending criteria and people need to start taking responsibility for what they can afford.
    Also limiting the amount of accounts that can be held would mean that those who have multiple current accounts for high interest or multiple credit cards for cashback, spending abroad, stoozing etc would loose out.


    Also the article blames the high debt on falling wages. When in reality the root cause is people not budgeting to take into account of changes in their income.
  • SailorSamSailorSam Forumite
    22.8K Posts
    10,000 Posts Combo Breaker
    Did people ever get into debt before the discovery of the credit card, when it was the norm that you saved up to buy whatever you wanted.
    Liverpool is one of the wonders of Britain,
    What it may grow to in time, I know not what.

    Daniel Defoe: 1725.
  • Muttipops wrote: »
    "What is the best way to get everyone to have their lightbulb moment earlier?"


    Educating children and young people about borrowing and debt at school and college and how to manage your money and budget in general.
    Responsible bank accounts and loaning of money.
    Curbing how much can be borrowed, amount of accounts that can be held.
    Develop a culture of pay your own way and saving.
    All of the above and no doubt more, so that light bulb moments are nolonger necessary in many cases.

    The more people share our Financial Education section, especially the Teen Cash Class the more we can teach children and young people how not to get into debt in the first place.

    Please do share them as much as possible!

    Thanks! :T
    Could you do with a Money Makeover?


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  • zenshizenshi Forumite
    1.1K Posts
    Part of the Furniture 500 Posts
    Forumite
    SailorSam wrote: »
    Did people ever get into debt before the discovery of the credit card, when it was the norm that you saved up to buy whatever you wanted.

    Vwhen I was growing up, pre credit cards, then mostly if you ran out of cash through bad budgeting then tough. Although in small villages it was quite common to get some essentials from the local store 'on tick'
    LBM.....sometime in 2013 £27,056. 10 creditors
    June 20.....£7,587.....3 creditors left 72% paid

    £26,200 on interest only part of mortgage (July 16)...will chip away £17,103
    £49,200 repayment mortgage ( July 16) £37,764
  • sourcratessourcrates Forumite
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    Part of the Furniture 10,000 Posts Name Dropper Photogenic
    Forumite
    It's also the "want it now" culture, my weakness was sports cars, when I was younger, bought the cars on credit, couldnt afford to maintain them on my meagre wage, cue the credit cards.

    You then start living on your credit cards, all your wages do is pay the minimums every month, then you get more credit for something else, before you know it, your nearly 60k in hock to various banks.

    Financial education is nie on non existent in schools, that needs to change, even though at the time, I earned less than 12k, I was allowed to rack up nearly 60k of debt, that must change too.
    Ex Board Guide.
    “A man who pays his bills on time is soon forgotten. - Oscar Wilde"
    “If you owe the bank $100 that’s your problem. If you owe the bank $100 million, that’s the bank’s problem.” -JPMorgan Chase"
    "I don`t trust Bankers, I don`t trust Banks, and I don`t trust you. -Private Frazer"
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
  • enthusiasticsaverenthusiasticsaver Forumite, Ambassador
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    Forumite
    We drummed it into our daughters heads about the importance of budgeting and only using credit cards in emergency not just because they want a new outfit etc. Not sure why schools should take on the job of educating young people, especially when many of the people in highest debt are older.
    Early retired in December 2017. Debt counsellor for a High Street bank in a previous life.

    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected] All views are my own and not the official line of MoneySavingExpert.


    Save £12k in 2022 challenge #36 £6000/£12,000 June 2022
  • enthusiasticsaverenthusiasticsaver Forumite, Ambassador
    13.2K Posts
    Ninth Anniversary 10,000 Posts Name Dropper I've been Money Tipped!
    Forumite
    SailorSam wrote: »
    Did people ever get into debt before the discovery of the credit card, when it was the norm that you saved up to buy whatever you wanted.

    I think before credit cards it was catalogues and HP. Still debt.
    Early retired in December 2017. Debt counsellor for a High Street bank in a previous life.

    I’m a Forum Ambassador and I support the Forum Team on the Debt free Wannabe, Budgeting and Banking and Savings and Investment boards. If you need any help on these boards, do let me know. Please note that Ambassadors are not moderators. Any posts you spot in breach of the Forum Rules should be reported via the report button, or by emailing [email protected] All views are my own and not the official line of MoneySavingExpert.


    Save £12k in 2022 challenge #36 £6000/£12,000 June 2022
  • sourcratessourcrates Forumite
    25.3K Posts
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    Not sure why schools should take on the job of educating young people, especially when many of the people in highest debt are older.

    They teach you many things you will probebly never need in life, such as algebra and py, but not how to change a fuse, or manage your money, lots of kids parents are just as useless with money unfortunately, just my opinion !!
    Ex Board Guide.
    “A man who pays his bills on time is soon forgotten. - Oscar Wilde"
    “If you owe the bank $100 that’s your problem. If you owe the bank $100 million, that’s the bank’s problem.” -JPMorgan Chase"
    "I don`t trust Bankers, I don`t trust Banks, and I don`t trust you. -Private Frazer"
    For free debt advice, contact either : Stepchange, National Debtline, CitizensAdviceBureaux.
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