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Pensioner Insolvency Rises Fastest As Baby Boomers Struggle To Pay Off Debts

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8232314/Pensioner-insolvency-rises-fastest-as-baby-boomers-struggle-to-pay-off-debts.html

Pensioners are now the fastest growing group filing for insolvency as Britain's baby boomers struggle to repay debts carried into retirement.

A record 15 people entered insolvency every hour in 2010, as the total number of people filing for bankruptcies, IVAs and Debt Relief Orders reached around 135,000 – up from 2009’s high of 134,132 – RSM Tenon said in a report on Friday.

Pensioners, although they made up less than 4pc of the total, now form the age group that is seeing the highest growth rate for insolvency, with a 14pc rise that RSM said could point to a worrying trend.

"This is the first generation of people who have been used to carrying debt," Mark Sands, RSM's head of bankruptcy and personal insolvency said.

"They’ll take out a new loan to pay off the old loan and to tidy up their credit card, and it just carries on."

Mr Sands said the baby boomer generation introduced to credit 20 years ago now faced a harsh reality if they continued to saddle debts into retirement.

"They are now coming to 65, moving to a fixed income – their pension, and realising that when they retire they can’t service the debt that they were comfortable with a few years ago."

Upcoming increases in VAT and “the inevitable rise in interest rates” mean insolvency numbers will rise still further, to beyond 140,000 in 2011, the personal insolvency specialists predicted.

"The economic downturn has left a lot of people in a bad financial state and we expect this to continue through 2011 and into 2012," said Mr Sands. "There really is no let up at the moment and many people will be struggling to see the light at the end of the tunnel when the upturn does arrive."

So the boomers who've carried perpetual debt throughout their lives are now going to discover a very harsh lesson. It will be interesting to see what happens to these stats over the next couple of years and see how many people 65-70 end up bankrupt.

Still I'm sure all of these premises have been factored into the losses the banking system will make with the taxpayer picking up the tab.

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http://www.telegraph...-off-debts.html

So the boomers who've carried perpetual debt throughout their lives are now going to discover a very harsh lesson. It will be interesting to see what happens to these stats over the next couple of years and see how many people 65-70 end up bankrupt.

Still I'm sure all of these premises have been factored into the losses the banking system will make with the taxpayer picking up the tab.

perpetual debt and rising repayments....then austerity.

sounds familiar.

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I cannot see how we can avoid a sharp recession as people will be buying less in 2011 simply because they have exhausted their ability to carry on borrowing (Pity Sid James and the crew are not still around).

With house prices crashing (Moneyweek) they will have little or no MEW power either. And its not a Gen X, Y, etc thing--all have been at the trough.

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I cannot see how we can avoid a sharp recession as people will be buying less in 2011 simply because they have exhausted their ability to carry on borrowing (Pity Sid James and the crew are not still around).

With house prices crashing (Moneyweek) they will have little or no MEW power either. And its not a Gen X, Y, etc thing--all have been at the trough.

lowering rates was supposed to be the cure for slow cash movement.

instead, the banksters sold us that we could borrow more....the ponzi began in earnest.

now the FSA "get it", and the siren calls for no regulation are loud and stupid.

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carry on borrowing (Pity Sid James and the crew are not still around).

How would you cast it? Sid as a doorstep lender, Ken as a highly respectable mortgage broker? Or Sid as bank manager?

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I cannot see how we can avoid a sharp recession

We will not see a sharp recession.

The government will ensure that we see continuous slow falls masked by periodic public expenditure boosts.

The UK is a mature economy in decline.

Edited by Buccaneer

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How would you cast it? Sid as a doorstep lender, Ken as a highly respectable mortgage broker? Or Sid as bank manager?

I think you'd need Rowan Atkinson as Blackadder in it.

Plus don't forget Stanley Unwin as the legal expert.

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The main disadvantage of voluntary insolvency is a ruined credit file.

How many pensioners will be bothered about this? So they won't be considered for a new mortgage, ah well, don't want one anyway. No new car on HP? Bummer.

Insolvency seems the easiest and most logical route for many of our beloved biddies.

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How would you cast it? Sid as a doorstep lender, Ken as a highly respectable mortgage broker? Or Sid as bank manager?

Ken as the BoE boss maintaining vigilance (denial). Babs as a comic Krusty. Sid as the boss of a Foxtons outfit. Charlie Hautry as an inept chancellor. Bernie Breslaw as a hapless home buyer and victim of Sid. June Whitfield as a BTL Empire owner.

A HPCer with script writing skills could come up with a classic.

"Carry on borrowing"

Edited by Realistbear

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"They’ll take out a new loan to pay off the old loan and to tidy up their credit card, and it just carries on."

Where's the problem? The government is doing exactly the same.

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I can remember as a kid watching a film on TV in the 70s called Live Now, Pay Later that was made in 1962! The plot was: "A man deserts his pregnant mistress, and is then promoted at his job after blackmailing an estate agent. "

So today's UK population have been exposed to ad driven appeals to get into debt for at least 50 years. I guess it's just got more intense, and evolved to be more subtle over the last 20 years, but the message has always been there "if you don't have the money for it, you can go into debt for it."

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I can remember as a kid watching a film on TV in the 70s called Live Now, Pay Later that was made in 1962! The plot was: "A man deserts his pregnant mistress, and is then promoted at his job after blackmailing an estate agent. "

So today's UK population have been exposed to ad driven appeals to get into debt for at least 50 years. I guess it's just got more intense, and evolved to be more subtle over the last 20 years, but the message has always been there "if you don't have the money for it, you can go into debt for it."

...and sod the consequences"

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A record 15 people entered insolvency every hour in 2010, as the total number of people filing for bankruptcies, IVAs and Debt Relief Orders reached around 135,000 – up from 2009’s high of 134,132 – RSM Tenon said in a report on Friday.

Tenon merged when? Sometime in the last 2 years? So many mergers going on these days.

RSM Tenon looks to have some difficulties of its own. Shareprice down 2/3rds over last 3 months. Profits not to expectations. Heavyweight Chief Exec resigns. Statements which show a concerning reliance on their banker.

The accountant admitted that headroom on its banking facilities was limited and that it was talking to its sole lender, Lloyds, about the expiry of banking facilities this summer.

If the banks can pull the plug on major oil refinery companies, no one is safe from the squeeze is the way I see it, perhaps forcing accountant auditors into bending to the will of the banks.

http://www.independent.co.uk/news/business/news/rsm-tenon-dives-after-morton-walks-out-6293756.html

http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/9033988/RSM-Tenon-shares-plunge-29pc-on-profits-warning.html

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8232314/Pensioner-insolvency-rises-fastest-as-baby-boomers-struggle-to-pay-off-debts.html

So the boomers who've carried perpetual debt throughout their lives are now going to discover a very harsh lesson. It will be interesting to see what happens to these stats over the next couple of years and see how many people 65-70 end up bankrupt.

Still I'm sure all of these premises have been factored into the losses the banking system will make with the taxpayer picking up the tab.

Less than 4% of the people filing for bankruptcies, IVAs and Debt Relief Orders are pensioners. Oldest boomer will be 65. I'm afraid I don't have the figures on what percentage of pensioners are 65, but I would imagine it's pretty small. Certainly <10%. So 0.4% of people filing for bankruptcies, IVAs and Debt Relief Orders are boomers.

Another boomer-bashing non-story.

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They could always liquidate some of their assets.

Revolutionary thinking, i know, but still an option for most.

Unless those assets include an upmarket brand new or classic car, a painting by a noted artist or real jewelry forget it, most of the things we have in our home are worth next to nothing once you take them out of the box.

Not worth getting the bailiffs round just for a flat screen tv, and someone's Franklin Mint decorative plate collection resale value wouldn't cover their costs

Edited by madpenguin

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Unless those assets include an upmarket brand new or classic car, a painting by a noted artist or real jewelry forget it, most of the things we have in our home are worth next to nothing once you take them out of the box.

Not worth getting the bailiffs round just for a flat screen tv, and someone's Franklin Mint decorative plate collection resale value wouldn't cover their costs

The house?

And by the way, this story is a year old

Edited by SeeYouNextTuesday

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The house?

And by the way, this story is a year old

Sure, if they own one, but I'd have thought that would be the first thing to attract creditors attention anyway.

Some of these stories never die, penalty for 24 hour news and always on internet forums, have to keep them filled with new stuff somehow :D

Edited by madpenguin

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So the boomers who've carried perpetual debt throughout their lives are now going to discover a very harsh lesson. It will be interesting to see what happens to these stats over the next couple of years and see how many people 65-70 end up bankrupt.

A load of fuss about nothing.

They'll just legalise compulsory generational debt transfer, with children becoming liable for their parents debts because "it's only fair as the children should be careing for their parents in their old age. If the parents run up debts it's because the children are choosing to neglect to care for them."

Retards please notice the quotes.

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A load of fuss about nothing.

They'll just legalise compulsory generational debt transfer, with children becoming liable for their parents debts because "it's only fair as the children should be careing for their parents in their old age. If the parents run up debts it's because the children are choosing to neglect to care for them."

Retards please notice the quotes.

You mean like the Japanese with their "100 Year Mortgages" ?

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You mean like the Japanese with their "100 Year Mortgages" ?

No no, that's just silly, with that you get a house.

They'll just make children directly liable for their parents debts.

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How would you cast it? Sid as a doorstep lender, Ken as a highly respectable mortgage broker? Or Sid as bank manager?

Hattie Jacques as Lady Kirsty Allpoop

Jim Dale as Phil Chancer

article-0-09ADDC91000005DC-511_224x423.jpg

Pwoperty only goes up, dontchaknow!

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How would you cast it? Sid as a doorstep lender, Ken as a highly respectable mortgage broker? Or Sid as bank manager?

and Hattie Jacques as the fat, bossy TV presenter, bullying FTBs into paying over their budgets.

Kenneth Williams would make a lovely EA - but maybe I'm thinking of Round the Horne, when he'd be half of Julian and Sandy at Bona Homes.

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http://www.telegraph.co.uk/finance/newsbysector/banksandfinance/8232314/Pensioner-insolvency-rises-fastest-as-baby-boomers-struggle-to-pay-off-debts.html

So the boomers who've carried perpetual debt throughout their lives are now going to discover a very harsh lesson. It will be interesting to see what happens to these stats over the next couple of years and see how many people 65-70 end up bankrupt.

Still I'm sure all of these premises have been factored into the losses the banking system will make with the taxpayer picking up the tab.

4% of all bankruptcies involve pensioners? boomers introduced to credit 20 years ago? WTF is that all about. Wheres Willets?

Extrapolation of the numbers reveals 750 more pensioners went bankrupt than the previous year. More 'blame the boomers' drivel.

Edited by campervanman

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  • 311 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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