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Creditaction August 2009

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Average owed by every UK adult is ~ £30,460 (including mortgages).

Everyone owes 30k and the average salary is 24k. It seems we are all very, very poor slaves.

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Average owed by every UK adult is ~ £30,460 (including mortgages).
Everyone owes 30k and the average salary is 24k.

If "every adult" includes those not in work, i.e. living on benefits, student loans etc., then shouldn't the average debt be compared to the average income, not the average salary.

In which case, oo-er. And cripes.

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I'm always perplexed by these statistics. How can we not be in debt when we only use debt as a means of exchange?

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So on £58,000 debt we as a nation are reducing it by £480 pa

At that rate no one will ever payback what they owe in their lifetimes...

Recovereh!

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There are many people I know who have no debt. They are either cash rich, or too poor to get loans.

So it must be even worse for those debt slaves than those figures suggest?

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Everyone owes 30k and the average salary is 24k. It seems we are all very, very poor slaves.

I owe -78K and I earn 48K. I feel sorry for the other guy.

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There are many people I know who have no debt. They are either cash rich, or too poor to get loans.

So it must be even worse for those debt slaves than those figures suggest?

Yes, read the details:

Average household debt in the UK is ~ £9,240 (excluding mortgages). This figure increases to £21,480 if the average is based on the number of households who actually have some form of unsecured loan.
Average household debt in the UK is ~ £58,320 (including mortgages)...

...Average owed by every UK adult is ~ £30,460 (including mortgages). This is 133% of average earnings.

Average outstanding mortgage for the 11.1m households who currently have mortgages now stands at ~ £110,550.

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There are many people I know who have no debt. They are either cash rich, or too poor to get loans.

They're the ones who have loans they don't tell you about. The ones where the man comes and collects the money each week from them at home.

The really extortionate debt that people in poverty seem to relish.

And I've seen another leaflet for the brand new "buy crap on credit" shop in Oldham today. You know high apr high prices and nice men who come and repo your kneecaps.

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They're the ones who have loans they don't tell you about. The ones where the man comes and collects the money each week from them at home.

The really extortionate debt that people in poverty seem to relish.

And I've seen another leaflet for the brand new "buy crap on credit" shop in Oldham today. You know high apr high prices and nice men who come and repo your kneecaps.

OK, I confess - I can't understand how the buy crap on credit shops work - they're handing out crap to people who they know can't afford it, otherwise they'd have gone elsewhere to get the plasma screen TV.

So presuming at least 30% of people default (and I think the figure is probably higher than that...) what happens? Man comes round and takes TV off you and that's the end of the story? Does that TV then get "sold" on as new in the store for someone else to rent out at 29% apr? or do they have to sell it off cheap? Or is it that people can afford the £15/month for life that it'll be to pay back the TV, and they just haven't done the math of putting £15/month in a bank account and waiting for a bit? If you break the TV/someone pours a can of coke over it while it's in your possession, and you stop paying for it it's not like they can take it away again - then do the repo men come round for everything else in your flat (but don't worry, they'll leave you the lightbulb, so you can still live in a Brighter House).

It just seems like a crazy business model, and there has to be some major losses in there that are purely the fault of the company lending the money out if they don't pay due diligence by doing credit checks.

Or am I way off here?

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