interestrateripoff Posted October 24, 2011 Share Posted October 24, 2011 Perhaps a merge? No surprise that the richest get to pay down their debt. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted October 24, 2011 Share Posted October 24, 2011 the salient point here is the increase in middle class unsecured borrowing.clearly people borrowing to live in the face of price inflation. Maybe they are borrowing because they expect an economic bounce meaning they'll be able to pay back what is being borrowed. Quote Link to comment Share on other sites More sharing options...
cypher007 Posted October 24, 2011 Share Posted October 24, 2011 hmm, im on a low income, and ive not seen many people on middle incomes around me cutting back at all. Quote Link to comment Share on other sites More sharing options...
mrpleasant Posted October 24, 2011 Share Posted October 24, 2011 hmm, im on a low income, and ive not seen many people on middle incomes around me cutting back at all. Keeping up appearances? The British are masters of the slient scream... Quote Link to comment Share on other sites More sharing options...
leicestersq Posted October 24, 2011 Share Posted October 24, 2011 Perhaps a merge? No surprise that the richest get to pay down their debt. Bit of a mystery how they incurred it in the first place though, except in the exceptional cases of a large rise in income. Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted October 24, 2011 Share Posted October 24, 2011 Bit of a mystery how they incurred it in the first place though, except in the exceptional cases of a large rise in income. Mhttp://www.dailymail.co.uk/news/article-1026959/Michael-Winner-You-think-youve-got-problems-My-debts-6m--thats-Ive-just-bought-new-Rolls-Royce.html In the old days, to feed my excessive lifestyle, I'd call Guernsey from time to time and say, 'Send me over half a million will you,' and they would. But I'd have to pay tax of about 25 per cent.Years ago my tax lawyer said this was madness and made a fairly obvious suggestion. 'If you're earning, say, 5 per cent on your money in Guernsey, instead of bringing it in and paying all that tax, why not borrow against it? 'You'll only pay 1 per cent, or less, over Bank of England base rate for your loan, so you'll only be losing 1 per cent or less each year, instead of giving the Inland Revenue 25 per cent of what you bring in.' I didn't like the idea. I've always hated borrowing. I pay my bills within a week, so even if I'm sometimes a considerable nuisance, suppliers love me because they get their cash so quickly. I doubt it's all like this but possible tax avoidance? Which also suggests it could go horrible wrong. Quote Link to comment Share on other sites More sharing options...
Mr P Posted October 24, 2011 Share Posted October 24, 2011 hmm, im on a low income, and ive not seen many people on middle incomes around me cutting back at all. Ditto!! Quote Link to comment Share on other sites More sharing options...
okaycuckoo Posted October 24, 2011 Share Posted October 24, 2011 Increase in demand for unsecured debt - my guess this is a new wave, people who wouldn't previously have considered debt to maintain their lifestyles. The first wave has passed through, leaving 500,000 debt management plans in England & Wales. A typical DMP covers, say, £20k of debt spread across 8 different creditors (CC & personal loan). Not unusual to see a six figure sum. In reality the loans will never be repaid, and their entries in DMPs are proxies for CCJs that the creditors don't want to place on the record. The best way of figuring out how quickly the middle class is crumbling may be to keep track of the growth in DMPs. The 500,000 figure I cited above comes from a R4 program on debt collection a few months ago. Any suggestions? Quote Link to comment Share on other sites More sharing options...
okaycuckoo Posted October 24, 2011 Share Posted October 24, 2011 whats a DMP? Sry. Went for the abbrevi 2 soon. Debt Management Plan - DMP. Quote Link to comment Share on other sites More sharing options...
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