£1.7 Trillion in personal debt, no wonder people cannot afford to buy a home.

triathlon

I have been meaning to put a post up on here about why so many people complaining about so called "over priced housing" will never have a chance to get on the ladder because of their own stupidity and over spending on dross they do not need.
I saw an article on the BBC website this weekend which I could not paste it quick before it was taken down of a young lady who just gave up booze and who was then able to afford a home. The UK now has personal debt of £1.7 Trillion, apart from spending all their money on luxuries as soon as their wages are in their pockets they then go out and borrow even more.

Still historical low interest rates, HTB, full employment, inheritance, it is as easy now to get on the ladder if you really want it as it has ever been. Do not tell me housing is over priced, I could you an argument of the opposite

elsien

If it's this one, it's disingenuous to suggest she "just" gave up booze, considering that her social bill is not far short of my monthly take home pay.

https://forums.moneysavingexpert.com/discussion/6008209/millennial-buys-house-after-giving-up-spending-1k-a-month-going-out

Some people overspend on luxuries, others use credit just to get by. I suspect most of us fall somehere in the middle.
I couldn't get on the housing ladder where I live, if I was just starting out. And I live in the bit of town which others avoid if they have a choice.
How about some figures to back up your assertions?

Thrugelmir

triathlon wrote: »

The UK now has personal debt of £1.7 Trillion,

That includes mortgages.

triathlon

Thrugelmir wrote: »

That includes mortgages.

That's probably the small proportion of debt that has been borrowed wisely

Zero_Sum

Its usual London biased media.
Housing is obscenely overpriced in London & SE.
It is however, very affordable in most of the rest of the country.
But that rest of the country is largely ignored.

Thrugelmir

triathlon wrote: »

That's probably the small proportion of debt that has been borrowed wisely

Peak of the historic interest only era comes into play in the period 2022-2027. Yet to see who is swimming without any clothes on. That includes legacy BTL .

phillw

That article seemed lacking in detail. She gave up booze and moved to Norfolk where she became a yoga teacher and part time digital marketer. With a likely drop in income that exceeded the drinks bill, it would seem it was the move that helped more. Giving up drink was more likely an epiphany

Herzlos

Back in the real world, some people have debt. Some of it is for necessities (because that new fridge is needed if you have the cash or not), some of it frivolous (holidays, nights out, whatever).


Because in some places house prices have gone nuts and are absolutely unaffordable to many due to the price increasing by more than their salary, some youths have given up on the idea of owning and instead are deciding to treat themselves. Why not?


I'd assume the vast bulk of the £1.7tn is in mortgages and cars by the wealthy, because that's about £30k/person and a lot of people don't have any debt. No millennial is in £100k+ debt because of avacadoes and iphones.

Kentish_Dave

OP, you can’t use a debt figure which includes mortgages to try to explain why people can’t get mortgages.

I suppose that as with many people nowadays numbers aren’t your thing but come on, this one’s really poor.

PasturesNew

triathlon wrote: »

... a young lady who just gave up booze and who was then able to afford a home...

I doubt my £5/year spend on booze would make any difference.

To buy a house you have to have income first..... that young lady obviously HAD the income and was just pee'ing it up the wall. Fewer have the income to start with, so giving up all manner of things won't make one jot of difference.

lisyloo

PasturesNew wrote: »

I doubt my £5/year spend on booze would make any difference.

To buy a house you have to have income first..... that young lady obviously HAD the income and was just pee'ing it up the wall. Fewer have the income to start with, so giving up all manner of things won't make one jot of difference.

It’s always been the case that some (around 1/3rd) have never earned enough to buy a home, but I think you’re right that wealth is now less equally spread plus we have a lot less social housing.