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Credit Action Debt Statistics

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Credit Action Stats

Total UK personal debt

Write-off rate on consumer lending by UK monetary financial institutions to individuals increased further in 2010 Q2 to 7.4%. UK banks and building societies wrote off £10.9bn of loans to individuals in the last 12 months to end Q2 2010. In Q2 2010 they wrote off £3.47bn (£2.14bn of that was credit card debt). This amounts to a write-off of £38.06m a day.

Total UK personal debt at the end of August 2010 stood at £1,428bn. The twelve-month growth increased by 0.9%. Individuals owe more than what the whole country produces in a year.

Total lending in August 2010 rose by £1.5bn; secured lending increased by £1.7bn in the month; consumer credit lending decreased by - £0.1bn (total lending in Jan 2008 grew by £8.4bn).

Total secured lending on dwellings at the end of August 2010 stood at £1,240bn. The twelve-month growth rate remained at 1.0%.

Total consumer credit lending to individuals at the end of August 2010 was £216bn. The annual growth rate of consumer credit was unchanged at 0.2%.

Average household debt in the UK is ~ £8,590 (excluding mortgages).

Always worth a read. ;)

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Credit Action Stats

Always worth a read. ;)

I keep seeing posts in various threads that suggest that anyone who is in sizeable debt is going to be in trouble soon.

It's only your problem while you struggle to keep up the payments. The day you stop paying it becomes the creditor's problem.

There are stages that this will go through.

First will be loss of income though reduced hours, reduced rates and complete loss of job.

This will lead to reduced spending and reduced payments on the debts( leading to loss of income for others)

This will then lead to increasing defaults on debts which will further damage the lending institutions which, in turn, will act accordingly and this will damage the economy in general.

At this last stage banks will be going for any percentage they can get and will be making folk bankrupt right, left and centre.

As I see it, having a huge debt and then going bankrupt would not be particularly painful for the debtor as long as he doesn't succumb to any feelings of guilt. Especially so when many others around you will be doing exactly the same thing.

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Forgive my ignorance, but when a bank declares that it has 'written off' a debt, does the debtor still owe anything? Has the debt been forgiven, in a sense, albeit grudgingly?

Or is writing off a debt more of an accounting wheeze on the bank's side, whereas for the debtor, it's still very much a live issue, which will continue forever unless said debtor declares bankruptcy?

Or do writeoffs = bankruptcies?

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Forgive my ignorance, but when a bank declares that it has 'written off' a debt, does the debtor still owe anything?

No, the bank has decided it won't get the money back and gives up on it.

But the person owing the money will have knackered their credit rating.

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No, the bank has decided it won't get the money back and gives up on it.

But the person owing the money will have knackered their credit rating.

Have a mate who works for Capital One, he reckons that anything under 50k in bad credit card debt and all you're going to get is a few angry phone calls. He says just get caller ID and job done, free money. Of course your credit rating will be nuked, but if you can borrow 50k each from several providers and never repay it, it sounds like an attractive proposition!

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Have a mate who works for Capital One, he reckons that anything under 50k in bad credit card debt and all you're going to get is a few angry phone calls. He says just get caller ID and job done, free money. Of course your credit rating will be nuked, but if you can borrow 50k each from several providers and never repay it, it sounds like an attractive proposition!

except you need to do it without conscious intent to defraud, otherwise, if your intentions are found out, you may end up in prison.

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Forgive my ignorance, but when a bank declares that it has 'written off' a debt, does the debtor still owe anything? Has the debt been forgiven, in a sense, albeit grudgingly?

Or is writing off a debt more of an accounting wheeze on the bank's side, whereas for the debtor, it's still very much a live issue, which will continue forever unless said debtor declares bankruptcy?

Or do writeoffs = bankruptcies?

...the problem is the lenders in many cases sell these debts off to people for as low as 10p in the pound ....to some unsavoury types of collectors who can make a nice profit buy collecting a healthy margin above that.... :rolleyes:

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except you need to do it without conscious intent to defraud, otherwise, if your intentions are found out, you may end up in prison.

And if the moon was made of cheese we could eat it. There are not enough prisons to put all the debtors in, whether intentionally fraudulent or not.

Edited by GinAndPlatonic

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I don't understand what keeps people paying back unsecured debts.

HSBC did me over for a few thousand pounds worth of charges as a student. After a year of trying to keep up, I gave up and told them to go whistle, returned their letters for a few months, and never heard from them again.

O2, the phone company, ripped me off so I walked away from that as well and just started sending their mail back. Again, they went quiet after a while and nothing happened.

Everyone should pay back their debts, but when companies take the piss and push people further into debt, I wouldn't think twice about just stopping paying.

I really don't understand what keeps people paying when we know we are morally bakrupt in this country?

And if I had the legal route of bankruptcy and owned no assets, I'd use it without a seconds hesitation.

Edited by Kyoto

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I wish they would remove the population that has up to £1500 debt that would account for blips in household accounts.

The people I know who really make use of debt have 20k+ worth of debt, whats the point of averaging out over the population that have 0 debt or Household managed debt which is really taking advantage air miles/points/vouchers?

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I don't understand what keeps people paying back unsecured debts.

HSBC did me over for a few thousand pounds worth of charges as a student. After a year of trying to keep up, I gave up and told them to go whistle, returned their letters for a few months, and never heard from them again.

O2, the phone company, ripped me off so I walked away from that as well and just started sending their mail back. Again, they went quiet after a while and nothing happened.

Everyone should pay back their debts, but when companies take the piss and push people further into debt, I wouldn't think twice about just stopping paying.

I really don't understand what keeps people paying when we know we are morally bakrupt in this country?

And if I had the legal route of bankruptcy and owned no assets, I'd use it without a seconds hesitation.

+1

The banks are certainly morally bankrupt. As a student Natwest once hit me with £70.00 in charges over 2 consecutive days. The reason? for going over my authorised OD but it was a £2.00 interest charge they'd applied that pushed me over. They charged me x2 £35 because I was overdrawn in two months (i.e last day of one month and first day of another).

Technically they were right, morally however........

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"Individuals owe more than what the whole country produces in a year."

:o

I still find it hard to understand how people were ever alllowed to borrow so much, and why so many would want to get into so much debt, that they must of known they couldn't pay back?

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  • 238 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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