Household debt rises to highest level since 2008

Thrugelmir

lisyloo wrote: »

In individual cases it won't be, but overall the statistical chances of it going bad for any reason (death, divorce, redundancy, sickness, general accident, car accident, high depreciation) have surely increased.

The change has resulted in a spend today pay back culture. People get drawn in by 0% finance deals. When in reality the price of the goods is marked up.

Around 18 months ago my other half decided to change her car. We walked into a main Ford Dealer and said we've a £15k budget and it's cash. Not interested at all in any discounting. Salesmen said we've targets to reach on finance deals. As we hit higher levels then the kick backs increase. Therefore we aren't interested in cash buyers. As we can earn £500 through the finance house on an average deal. World has gone mad.

parking_question_chap

Surely it depends how you define debt.

I know they dont, but what ever everybody paid of their credit bill each month? Then surely the £66.7bn total would be misleading.

I for one use my credit card as often as I can (as in rather than my debit card), and then pay it off each month in full. Reason being I can keep my bank account higher and earn more interest. It might not make a massive difference as I only spend a few hundred on my card, but every little bit of interest helps.

CLAPTON

Thrugelmir wrote: »

The change has resulted in a spend today pay back culture. People get drawn in by 0% finance deals. When in reality the price of the goods is marked up.

Around 18 months ago my other half decided to change her car. We walked into a main Ford Dealer and said we've a £15k budget and it's cash. Not interested at all in any discounting. Salesmen said we've targets to reach on finance deals. As we hit higher levels then the kick backs increase. Therefore we aren't interested in cash buyers. As we can earn £500 through the finance house on an average deal. World has gone mad.

take the finance deal and get the best price, then repay or cancel the loan

wotsthat

Thrugelmir wrote: »

The change has resulted in a spend today pay back culture. People get drawn in by 0% finance deals. When in reality the price of the goods is marked up.

Around 18 months ago my other half decided to change her car. We walked into a main Ford Dealer and said we've a £15k budget and it's cash. Not interested at all in any discounting. Salesmen said we've targets to reach on finance deals. As we hit higher levels then the kick backs increase. Therefore we aren't interested in cash buyers. As we can earn £500 through the finance house on an average deal. World has gone mad.

Per Clapton's reply - you could've taken out finance, got a better deal then cancelled and repaid the finance within the cooling off period.

This works at lots of places. For example when hassled to take out extended warranty always ask if they'll give a discount then go home and cancel it.