Saturday, May 05, 2007
... but Credit Industry think we can easily cope with more debt
Guardian: 'Credit comfy' Britain embraces rising debts
The research by credit-rating agency CreditExpert.co.uk says six million people in Britain would only start to worry if their unsecured debt reached £15,000, while 1.4 million would wait until it hit £50,000 before breaking into a sweat.
Posted by uncle chris @ 08:23 AM (159 views) Add Comment
3 Comments
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1. Manjit said...
Britain in my opinion is in a dangerous state of affairs. Shame on this Govt for not tightening fiscal policy with higher interest rates 2 years ago and perhaps controlling uncertified income lending and high Income multiple mortgages generally. I think the youngsters of today perhaps dont see a future in this country with such high costs for one of the basic needs of mankind , a roof over your head. There is no doubt in my mind that IVAs will increase and as they have been made easier by thes govt , many youngsters will try to wash themselves of massive debt. We will begino see pprotests iro high house prices like Brighton this week etc etc. Dont rule out riots in the UK as at some point the " have nots" will take more drastic action and resent the "haves "
Being asian myself I note we have a strong save culture which has served us well and I am passing this on to my children. I thank my culture for this. A lot of people in the UK are simply not careful enough with money and spend money they have not got eg take 2/3 holidays abroad a year that cant really afford as they feel they " deserve it ". Why do they deserve it ? when thay have not saved for them and perhaps they live in financal denial of reality. In my Opinion most people should look to save between 15% and 40% of their disposal Income. I aim for 50% plus !! Sacrfices will need to be made and it will be a culture chnage but it is the best advice i can give youngsters. Please be assured that House prices will come down in due course. Please read the ABN Amro article that is posted under must reads if you can. It is a great article which demonstrates sound rationale why housesmust and will come down.
thanks for reading this guys!
2. Manjit said...
The debt culture in this country astonishes me. The Govt don't seem to want to do anything about this and yet they have the fiscal powers to do so. At some point this money has to be paid back. As for those hoping to "wash it all away" with easier insolvency rules - It will be a terrible scar to bear.
The Govt has to take some responsilibity for not tightening interest rates and increasing them earlier. The burden of Debt is made out to be part and parcel of society! Anyone who has 20K + in credit card debts needs their head testing ,You are living ebyond your means !
Being of Asian origin, It instills a culture of saving which i am so grateful for and has helped me to build a portfolio of 160K in non property ISA type investment and god it makes you feel so so secure. I think the english in general do not save and do not want to save and that has to be one of your problems guys. I suggest people try to save between 20% to 50% of their net income in ISAs etc etc and see what happens in say 4 years. Of course sacrifices have to be made such as not buying new "disposable fashion" clothes every month and cutting back on those 2/3 foreign holidays each year ( often paid by credit ! ) No you dont deserve it!! anyone can say that !! dont you deserve a place of your own more?/!!
3. Cheekie Charlie said...
Possibly written by Peter Ridsdale, Financial Advisor.