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To try and conceal the fact that everyone's jobs have gone to Asia, China and India.

Without bucket loads of unsecured debt they might have noticed globalism has been impoverishing them and voted to stop it.

And to ensure Gordon's taxes would continue to be paid, obviously. Which would not have been possible without rising house prices and 'free' money.

You've been had folks.

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also students

more people than ever are studying to degree level, and most of them have to do it by going into significant debt

having started off that way, at a time of life when you are establishing financial habits, it must be difficult to break the habit

To maintain growth we must maintain ever increasing copious amounts of debt...born with debt, die with debt from cradle to grave...follow the leaders, don't do as they say, do as they do. ;)

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I thought it had been discussed here many times before that, as recent court actions have shown, that 'unsecured' debt is anything but that. IF you have any meaningful assets then the lenders can (and do!) recoup their money ultimately via these assets (through charging orders?).

Given this situation it is especially egregious that the lenders charge interest rates for supposedly unsecured loans at much higher rates - ostensibly to cover risk of borrower default. Given that mechanisms exist to get back their money in nearly all situations (or a large part of it), the rates should be lower. A classic banking case of having your cake and eating it too.

The legal argument is that once the lender gets judgment for the debt, it's no longer a contractual debt attracting a high rate but a judgment debt attracting a low rate, and therefore all bets are off. Bit more complicated than that, but you get the gist.

The security that a lender attaches (charging order) on a defaulting unsecured loan will probably turn out to be worthless because its value depends on the equity in the house. The lender gets an immediate benefit through not having to writedown the loss, but in the long term only a sucker would invest ... oh shit, the gubmint has done it already!

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Pure greed, desperation and big egos. People like to pretend they are more wealthy than they really are. Everyone expects things straight away nowadays and the risk of bankruptcy doesn't faze anyone. It's just how society has changed.Those who live within their means and don't buy extravagant things (like moi) are often looked down upon in this country for some reason.

I agree, two points however.

1. You sleep better at night for not having debt hanging over you.

2. You'd be surprised. Many of those people you reckon look down on you are secretly envious of your straightforward lifestyle.

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Thank you all for your input. I managed to score 100% for my essay and found that a lot of the information that I researched agree with what most of the thread was about.

We definately are in a high pressured consumer society where marketing has created wants. Deferred gratification of wants in the passed has indeed been replaced by instant consumption using debt products. People are also into symbolic and conspicious consumption where they need to act a part or want to ostentatiously display their wealth or social status to others. Some cannot afford to do this so they take out unsecured debt in order to finance this lifestyle.

Also, I agree that the social stigma of the past, where an individual was looked down upon for taking debt has indeed evaporated to be replaced with debt being part and parcel of day to day life.

People also require debt to increase their Credit Scores and it seems that the government encourages debt with its liberalisation policies, right-to-buy and student debts.

And then some people are just down right stupid and cannot see that their expenses are way too high, they need to be readjusted in order to balance their personal finance.

I've come to the conclusion that the FSA have not done enough in the education of the population in personal finance, which is one of their mandates, believe it or not.

So again, thank you all.

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  • 434 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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