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SuperChimp

Uk Personal Debt Limit

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I would be grateful if anyone can help with this.

I am trying to find out if there is a limit to the amount of personal unsecured debt a person in the UK can have.

If we imagine a single person 20 - 30 living at home with their parents. Annual income circa £20,000. No property/car etc. How much debt could they accrue? Ignoring student loans.

The reason I ask is that I have a friend who has told me they have debts over £20,000 :o and I was wondering how high they could go. Obviously there is a limit with regards to monthly payments but if they lived at home at their entire income was expendable this would not be a short-term problem I imagine.

I have never worked directly with debt charities or in the banking sector so I do not know.

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afaik there's no legal limit to the amount of personal debt you can have. If people want to lend you the money you're free to borrow it. Whether it's a good idea or not is a different question obviously.

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A good personal friend of mine who is terrible with money managed to accumulate £25k debt on credit cards alone before he was 23. This hit the fan and his parents paid the debt off for him and allowed him to pay it off monthly. I don't think there is a debt limit before 'they' cut you off, as long as you are making payments obviously.

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A good personal friend of mine who is terrible with money managed to accumulate £25k debt on credit cards alone before he was 23. This hit the fan and his parents paid the debt off for him and allowed him to pay it off monthly. I don't think there is a debt limit before 'they' cut you off, as long as you are making payments obviously.

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If we imagine a single person 20 - 30 living at home with their parents. Annual income circa £20,000. No property/car etc. How much debt could they accrue? Ignoring student loans.

The sky's the limit (as your average Costa-swiggging three-hols-a-year interest-only mortgagee will testify).

However!

Your borrowing is recorded on your credit file. So in theory the more you owe the less likely lenders are to give you more. In. Theory.

Also, 20K of unsecured debt is a relative pittance compared to what many owe.

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Thanks for the replies.

Your borrowing is recorded on your credit file. So in theory the more you owe the less likely lenders are to give you more. In. Theory.

So does your credit file show exactly what you owe? Or within a certain band?

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So does your credit file show exactly what you owe? Or within a certain band?

Experia reports show what you owe. It's updated monthly and it's fairly accurate.

Although I haven't seen their reports I presume other credit reference agencies are similar.

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Experia reports show what you owe. It's updated monthly and it's fairly accurate.

Although I haven't seen their reports I presume other credit reference agencies are similar.

Thank you. B)

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Surely a credit record that shows you keeping up the monthly payments, means the more you owe the better a deal you are to lend more to?

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I used to work for the Insolvency Service doing administration for bankrupts.

Each persons file detailed their debts; £50/60k was not unusual, occasionally the odd person would run up £120k worth of debt, though I seem to recall these people had been deliberately deceitful to banks/credit card companies etc to get to that level.

I believe the credit reference agencies and each bank have their own formulae on how much they'll lend to individuals, whether there is an agreed maximum/ceiling set by all the banks I don't know, ask the FSA or the new one recently set up?

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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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