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Personal Debt Dips For First Time

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http://news.bbc.co.uk/1/hi/business/8231135.stm

Page last updated at 13:54 GMT, Tuesday, 1 September 2009 14:54 UK

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Personal debt dips for first time

Personal debt fell for the first time in 16 years

The total amount of personal debt in the UK has fallen for the first time since records began in 1993, the Bank of England has said.

Personal borrowing fell by £600m in July, taking the total owed by individuals down to £1.457 trillion...../

"Today's news will not make happy reading for policy makers who have taken significant steps over the last year to encourage greater volumes of lending throughout the economy," said :lol: :lol::lol:

_____________________________

Brown foiled by increasing prudence!

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He'll probably soon make it a criminal offence to not have at least 1 credit card with half the credit limit used up at any given time. probably get stop searched in the street by the credit police and if found with no credit card or a credit card that has a lower than acceptable amount owing, you get nicked.

i can see the ads recruiting now -

"Credit inspectors - your job is to patrol and stop members of the public if you have reasonable suspicion they are not making good use of their credit facilities. Grounds for suspicion include discount shop carrier bags, shabby attire, unruly hair. you will be equipped with a terminal which can scan a credit card and refer to the credit database centre in determining whether a suspect is guilty of the offence of Withholding Credit Custom under the 2009 Keep Spending Or Go To Prison Act. Previous applicants need not apply."

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Guest theboltonfury

Maybe the people aren't as 'sheepish' as many thought?

Seems like a sensible tactic to me.

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Guest theboltonfury

Maybe the people aren't as 'sheepish' as many thought?

Seems like a sensible tactic to me.

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http://news.bbc.co.uk/1/hi/business/8231135.stm

Page last updated at 13:54 GMT, Tuesday, 1 September 2009 14:54 UK

E-mail this to an enemy

Personal debt dips for first time

Personal debt fell for the first time in 16 years

The total amount of personal debt in the UK has fallen for the first time since records began in 1993, the Bank of England has said.

Personal borrowing fell by £600m in July, taking the total owed by individuals down to £1.457 trillion...../

"Today's news will not make happy reading for policy makers who have taken significant steps over the last year to encourage greater volumes of lending throughout the economy," said :lol: :lol::lol:

_____________________________

Brown foiled by increasing prudence!

Im not surpised at all - everone I know in work is paying down debt whether it is the mortgage or credit cards. I suspect this is an acknowledgement of most people expecting worse to come.

Also many people are diverting investment funds into enhanced mortgage repayment given the lack of faith in the financial sector.

I only pay into my Companies pension fund because they match employee contributions. For every 60p I put in I get 40p tax releif and £1 off the firm - no brainer really.

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http://www.telegraph.co.uk/finance/persona...wn-hatches.html

If I've got the right number of zero's and the maths correct that means:

635000000/1460000000000*100=0.043% paid back of what we owe.

The foundations to build a recovery on.

It's the minuscule recovery.

Edited by interestrateripoff

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Probably due to more and more people declaring BK or having a the majority of their debts written off.

No, I think it's genuinely down to people stopping taking on debts and paying them off instead. This will continue for the foreseeable future. The party is over.

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No, I think it's genuinely down to people stopping taking on debts and paying them off instead. This will continue for the foreseeable future. The party is over.

Yep. They interviewed someone who said his mortgage interest has plunged from £1600/month to £200, but he continues to pay the same £2300 (numbers from memory).

I expect there are lots of people paying off debt in this manner. If I had a mortgage, I'd be one of them.

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Dont be fooled by this number and look at the bigger picture

If GDP is falling faster than the amount is being paid off then the debt burdon is higher even if the number is lower

I assume as homes creditcards personal loans business fail and losses get written off surly the debt owing should reduce this explains why this is happening and to be expected

I wouldnt read too much in this info as good or bad

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No, I think it's genuinely down to people stopping taking on debts and paying them off instead. This will continue for the foreseeable future. The party is over.

Or, this period of zero interest rates and debt paydown/writeoff, will continue for a couple of years but will have the effect of resulting in huge wealth creation amongst the populace [the majority of whom will be in employment even if it's govt jobs mostly].....they will then be in a position to fund with savings and low-interest borrowing more speculative asset accumulation aka stock and housing market investments thus forcing up prices, or atleast concetrating that asset wealth even more so amongst the property ownin' class, who would then distribute it to younger generations via cash deposits for property and such like. Sound familiar ?

This is starting to look and smell more and more like 2001. Which is why i said the coming decade will not look dissimilar to the last.....you really think UK and US households are going to share the same desire to save as the japanese, and take us into a japan style flatline ? I think not !!!!!! We might even get, once the banks have totally forgotten about the cliff they were dangling over earlier this year, another million to the BTL fanclub. genius.

As i've said, this period is seeing mortgage borrowers and BTLers paying peanuts on their mortgage every month only allows them to save much more while keeping hold of assets that will rise in value as economic recovery ensues. And believe me, govt. is not going to ease off the fiscal and monetary gas unless they see clear evidence of recovery.

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To put the numbers in some context, total personal debt is an average of about £25k for every single person in the UK. Repaying £600m is equivalent to everyone chipping in a tenner!

Good that its not rising but its never going to come any where near to being significantly reduced.

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Guest pioneer31
Or, this period of zero interest rates and debt paydown/writeoff, will continue for a couple of years but will have the effect of resulting in huge wealth creation amongst the populace [the majority of whom will be in employment even if it's govt jobs mostly].....they will then be in a position to fund with savings and low-interest borrowing more speculative asset accumulation aka stock and housing market investments thus forcing up prices, or atleast concetrating that asset wealth even more so amongst the property ownin' class, who would then distribute it to younger generations via cash deposits for property and such like. Sound familiar ?

This is starting to look and smell more and more like 2001. Which is why i said the coming decade will not look dissimilar to the last.....you really think UK and US households are going to share the same desire to save as the japanese, and take us into a japan style flatline ? I think not !!!!!! We might even get, once the banks have totally forgotten about the cliff they were dangling over earlier this year, another million to the BTL fanclub. genius.

As i've said, this period is seeing mortgage borrowers and BTLers paying peanuts on their mortgage every month only allows them to save much more while keeping hold of assets that will rise in value as economic recovery ensues. And believe me, govt. is not going to ease off the fiscal and monetary gas unless they see clear evidence of recovery.

I think Sibley has some competition on these boards :lol:

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To put the numbers in some context, total personal debt is an average of about £25k for every single person in the UK. Repaying £600m is equivalent to everyone chipping in a tenner!

Good that its not rising but its never going to come any where near to being significantly reduced.

Yes the amount paid off SO FAR is small, but the point is that the trend has turned from borrowing to repaying. That trend will strengthen and continue.

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Yes the amount paid off SO FAR is small, but the point is that the trend has turned from borrowing to repaying. That trend will strengthen and continue.

I agree its important the trend has turned & taht it will strengthen for the moment. However even if it doubles and people are paying off £20 a month of their £25k by the time interest rates start to creep up (say two years) people will still owe £24.5k each.

The worst is most definitely yet to come!

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I think Sibley has some competition on these boards :lol:

Er what part of his scenario isn't plausible? What he is describing IS happening. Monetary policy is now now skewed towards protecting asset values. That favours those that hold the assets not those who do not. With these interest rates, BTL and Liar loans are sustainable. It's entirley reasonable to hypothesise that the people to benefit from recovery will be those that policy has protected thus far.

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Maybe the people aren't as 'sheepish' as many thought?

Seems like a sensible tactic to me.

I don't think it is a tactic - more of a natural law, like gravity. People are paying back debt as normal, it is just that there is less borrowing due to credit crunch, and therefore the net effect is payback of debt overall.

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Er what part of his scenario isn't plausible? What he is describing IS happening. Monetary policy is now now skewed towards protecting asset values. That favours those that hold the assets not those who do not. With these interest rates, BTL and Liar loans are sustainable. It's entirley reasonable to hypothesise that the people to benefit from recovery will be those that policy has protected thus far.

Up to a point. But it's predicated on flooding the market with newly-printed money to push rates down. Won't be sustainable past an election.

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Up to a point. But it's predicated on flooding the market with newly-printed money to push rates down. Won't be sustainable past an election.

This appears to be a much quotes article of fairth hereabouts. Can someone point me in the direction of any evidence that any of the opposition parties will either cease or wind back existing QE?

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