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Dave Beans

Millions Of Households Are Falling Behind With Their Bills As An Extra 40 Per Cent Take On More Debt To Cover The Costs, Insolvency Experts Report.

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http://www.telegraph.co.uk/finance/personalfinance/8176192/Millions-of-households-taking-on-more-debt.html

Almost four million people are behind with their bills and are being forced to resort to their credit card to make up the shortfall, according to the study by R3. More than three million have taken on more debt in the last quarter. They are managing to get to the nineteenth day of the month before they begin to run out of money, a day sooner than six months ago. The alarming statistics are the latest evidence of the tough times facing consumers in the run up to Christmas.

Steven Law, president of R3, said: “I see many people who are concerned about their credit card debts as, worryingly, they rely on them for day-to-day purchases. “Unfortunately, I fear that the number of people worrying about their levels of credit card debt is set to grow.”

Mr Law added: “Making credit card payments and spending on non-essential items remain the key reasons why people struggle to pay day.” The study found that a third of people think that their financial situation will worsen during the next six months, up 7 per cent on the previous quarter.

“Since we last carried out the survey, the government has issued the Comprehensive Spending Review that announced job cuts and welfare cuts, so it is unsurprising that fewer people are feeling optimistic about their financial outlook,” Mr Law said.

“In many cases of personal insolvency the contributory factor is a sudden change in circumstance, such as losing a source of income, which makes repaying outstanding debts difficult. With personal debt hitting record highs and job cuts looming, many people will be feeling vulnerable.”

The number of people who are worried about their current level of debt has remained steady, with one in four expressing concern. In the West Midlands, people are most likely to worry, with half of those surveyed saying they are worried about their debts. In London, one in four are concerned.

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They are just following the glorious example of their leaders, solving debt with more debt. Sure it'll all work out fine.

Yep, I mean what could possible go wrong with continually spending more money than you get in income. It's not like at some point servicing costs will be your entire income or anything as ridculous as that.

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They are just following the glorious example of their leaders, solving debt with more debt. Sure it'll all work out fine.

I understand why people are borrowing.

Its why they are lending to people who are spending more than they are earning that is the mystery to me.

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I understand why people are borrowing.

Its why they are lending to people who are spending more than they are earning that is the mystery to me.

the hunt for yields in a low IR environment, I would guess, AKA the bond bubble, a dash for perceived 'safe' bonds by oldies, which need a bond yield somewhere, so are possibly being invested in collateralised credit card debt obligations, or some such wizardry, or even more simply debt-backed bonds from MBNA, Capital One, Barclaycard etc - possibly a big connection with QE2

my guess anyway

and yes I do think grandpa's pension, cunningly invested in a 'safe' bond fund, is going to go bye-bye as the debtors default, you could always call it an historic transfer of wealth from old to young

the question should instead be 'why does grandpa insist on lending his money out into a bond bubble market by way of a bond fund in his pension?' and the answer is probably related to a bit too much faith in the system

Edited by Si1

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I understand why people are borrowing.

Its why they are lending to people who are spending more than they are earning that is the mystery to me.

...because they are not interested in the consequences they just want to make a sale today....what happens tomorrow somebody else will have to sort and pay for it. :huh:

Edited by winkie

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...because they are not interested in the consequences they just want to make a sale today....what happens tomorrow somebody else will have to sort and pay for it. :huh:

Best example of that is

PREDATORY & TOXIC LIAR LOANS

THE rocket fuel used to fire the HPI Phenomenon..... :rolleyes:

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  • 312 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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