Household debt rises to highest level since 2008

Graham_Devon

Household debt is now aat highs reached only in 2008, just before the credit crunch.

Debt levels of households have risen 10.8% in a single year.

The data excludes mortgages, and only looks at loans and credit cards.

The people in power have warned about high debt levels, but seem very reluctant to actually do anything about it other than make credit ever easier to get hold of.

10.8% rise in debts seems rather huge in a single year? It's the fastest rate of growth in the last 11 years.

https://www.theguardian.com/business/2017/jan/04/uk-credit-cards-borrowing-debt-economic-crash-fears

mrginge

Graham_Devon wrote: »

The people in power have warned about high debt levels, but seem very reluctant to actually do anything about it other than make credit ever easier to get hold of.

To be honest graham I don't think there's many people anywhere who are actually prepared to do anything about it.

Nebulous2

It's me - all me!

Well not really, but I've made my own very modest contribution.

Herzlos

mrginge wrote: »

To be honest graham I don't think there's many people anywhere who are actually prepared to do anything about it.

Or in a position to do anything about it. Lots of people have seen below inflation wage rises for almost a decade now.

Thrugelmir

FCA are long overdue with a review of the unsecured lending markets. Nearly 2 years since the MMR.

[Deleted User]

One wonders where its all being spent with next having a dreadful xmas and even john lewis posting sales down 9.4% immediately after xmas.

Thrugelmir

venison wrote: »

One wonders where its all being spent with next having a dreadful xmas and even john lewis posting sales down 9.4% immediately after xmas.

Debt incurs interest...........

MacMickster

Raising the base rate might be seen by some (ie pretty much anyone but Carney) as an appropriate step to try to cool the growing appetite for cheap personal debt.

HAMISH_MCTAVISH

Graham_Devon wrote: »

Household debt is now at highs reached only in 2008, just before the credit crunch.

Debt levels of households have risen 10.8% in a single year.

The data excludes mortgages, and only looks at loans and credit cards.

10.8% rise in debts seems rather huge in a single year? It's the fastest rate of growth in the last 11 years.

Well as the UK economy is substantially reliant on consumer spending that explains the economic "performance" seen this year.

You seemed to be celebrating it recently though when discussing Brexit....;)

Thrugelmir

MacMickster wrote: »

Raising the base rate might be seen by some (ie pretty much anyone but Carney) as an appropriate step to try to cool the growing appetite for cheap personal debt.

Even a small upward movement by the BOE might focus peoples attention. The Fed is widely expected to raise rates this year. So the game might be changing in any event.

CLAPTON

HAMISH_MCTAVISH wrote: »

Well as the UK economy is substantially reliant on consumer spending that explains the economic "performance" seen this year.

You seemed to be celebrating it recently though when discussing Brexit....;)

consumer consumption is, of course, the sole purpose of economic activity;
sometimes one chooses to delay current consumption so one can consume more tomorrow.