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Britons Facing Bankruptcy Owe More Than £60,000

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Britons facing bankruptcy owe more than £60,000

The full extent of Britain's debt crisis has been revealed as figures show one in 10 facing bankruptcy owe more than £60,000, excluding mortgage payments.

The latest research into the state of households' finances also showed the average debt among people experiencing bankruptcy, a debt management plan or an Individual Voluntary Arrangement is £25,115.

But nearly a quarter of those in debt do not know how long it will take them to pay it off.

The study also highlighted the problem of borrowers failing to discuss their financial woes, with one in seven refusing to seek any help at all due to the social stigma of admitting they cannot manage alone.

Nine out of 10 said the impact on their credit rating is a key reason for not declaring themselves bankrupt, while almost two thirds cite long-term credit issues as being the most frightening aspect of serious debt.

Jessica Bown, of Talkaboutdebt.co.uk – the debt help website which carried out the research – said: "The main concern is that while the fear factor is preventing people from talking about debt and seeking help, their debts continue to mount.

"By seeking advice early, they can stop the problem from escalating, and prevent the stress caused by serious debt taking over their lives. People get stuck in a vicious circle of fear and inaction, which in reality only makes the problem bigger."

The piper always gets paid. These fvcking goofs who've run up ridiculous debts and are bailing out need to be put in debtor prisons, and make to work it off for the rest of their lives. Why do I have get stuck with their financial failings through increased taxes and fees?

Yes, I know the politico and establishment are to blame as well, but I can vote them out or choose to avoid dealing with certain banks/institutions etc...

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..These fvcking goofs who've run up ridiculous debts and are bailing out need to be put in debtor prisons, and make to work it off for the rest of their lives. ....

There are no such things anymore. There are many reasons for that but the primary one is that human effort has no value. Forced labour will not work off the debt - after all if it could they would be able to earn a wage and pay off the debt in a conventional manner.

Without an economy that adds value to basic raw materials all money is generated by smoke and mirrors (yours and mine too).

In China (where they make things) forced labour exists and is used to exploit and control people - human activity has a value.

Consumer driven economies require people to buy vast amounts of crap they don't need. These people (bankrupts) are not goofs - they are simply those for whom the paradigm doesn't work. The money equivalent of alcoholics or junkies.

The ridiculous debts and bail out to worry about is the banking system. No matter how you try you (and I) will end up paying for that.

It is annoying I grant you, but nothing you or I can do so stop worrying and get on with life IMO.

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Guest KingCharles1st

You know- everyone looks at money and mortgages as X x Salary- the ideal being the answer 3 apparently.

But is there a well used formula/ratio for debt against yearly salary? Exmple, someone with a salary of 18K and debt of 24K would have a ration of 1.33

At what point should this debt "ratio" level be capped?

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You know- everyone looks at money and mortgages as X x Salary- the ideal being the answer 3 apparently.

But is there a well used formula/ratio for debt against yearly salary? Exmple, someone with a salary of 18K and debt of 24K would have a ration of 1.33

At what point should this debt "ratio" level be capped?

Good question.

The trouble is all of this non-mortgage debt has been backed by increasing house prices so this ratio wasn't a problem as implicitly it was all guaranteed by hour house.

It would be interesting to see the stats of how large people in rented property debts are as against those who own or live in a mortgaged house. My gut feeling is that those who rent will have been denied high multiples of debt against income because they have no asset, ie the house.

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Of course it has nothing to do with the banks who made a conscious decision to keep upping peoples limits with out asking them, then raised the IR to incredibly high levels??

There's blame on both sides

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Of course it has nothing to do with the banks who made a conscious decision to keep upping peoples limits with out asking them, then raised the IR to incredibly high levels??

There's blame on both sides

I had that for a time, without asking my credit limits just kept increasing, at one point I had a £10k limit on 3 cards (+ even more with other cards I had). Could have had huge binge and no way of paying it back without selling the house.

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I had that for a time, without asking my credit limits just kept increasing, at one point I had a £10k limit on 3 cards (+ even more with other cards I had). Could have had huge binge and no way of paying it back without selling the house.

my god, all that credit behind you....you are truly a valuable person.

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my god, all that credit behind you....you are truly a valuable person.

Yes I know, I was rich back then. But now I hardly have any access to that wealth as my credit limits have been reduced.

Now I'm a poor person.

Debt is wealth.

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Yes I know, I was rich back then. But now I hardly have any access to that wealth as my credit limits have been reduced.

Now I'm a poor person.

Debt is wealth.

don't worry - you have other peoples' debts to pay off, now you are truly rich

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don't worry - you have other peoples' debts to pay off, now you are truly rich

Yes but it's not like having your own is it. Sharing is very nice and helps build community spirit but there's nothing like having your own fountain of wealth that you can call your own.

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But is there a well used formula/ratio for debt against yearly salary? Exmple, someone with a salary of 18K and debt of 24K would have a ration of 1.33

At what point should this debt "ratio" level be capped?

Can of worms.

In theory no cap is needed if the borrower insures against inability to pay. But if the financial system is rotten, the insurance company just becomes another point of systemic failure.

A good start would be to separate retail and investment banking, with retail banks being prohibited from dabbling in clever stuff like selling mortgage-backed bonds -- if a loan isn't sound enough to keep transparently on their own books, they shouldn't make it. Then the caps would be decided by those carrying the can, and no fixed ratio would be needed.

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