interestrateripoff Posted December 1, 2014 Share Posted December 1, 2014 Cheap borrowing is fuelling a consumer credit boom Demand for credit increases at fastest pace in eight years in October, though UK mortgage approvals continue to fall Yeah what could possible go wrong.... Quote Link to comment Share on other sites More sharing options...
Errol Posted December 1, 2014 Share Posted December 1, 2014 A certain sign of consumer distress and lack of disposable income. The economy is going down, basically. It's going to get exceptionally nasty this time. Quote Link to comment Share on other sites More sharing options...
renting til I die Posted December 1, 2014 Share Posted December 1, 2014 Cheap borrowing is fuelling a consumer credit boom Demand for credit increases at fastest pace in eight years in October, though UK mortgage approvals continue to fall Yeah what could possible go wrong.... Nothing, it's a perfect plan. Nothing can go wrong! "The Bank of England has indicated that still high consumer debt levels are an important factor why it will only raise interest rates gradually over the longer term," added Mr Archer. I loved this bit. If the US and Europe raise rates for any reason (yes, seems very unlikely at the moment) we will have to follow suit, wherever the BOE want to or not! Quote Link to comment Share on other sites More sharing options...
TheCountOfNowhere Posted December 1, 2014 Share Posted December 1, 2014 debt is for idiots. Quote Link to comment Share on other sites More sharing options...
winkie Posted December 1, 2014 Share Posted December 1, 2014 What can go wrong?.....spent but never paid for....sellers don't care where it comes from all they require is cash or plastic, not their problem if ever paid or not. Quote Link to comment Share on other sites More sharing options...
blobloblob Posted December 1, 2014 Share Posted December 1, 2014 Fantastic! You could just have easily linked to an article dated around 2006 with exactly the same title. Plus ca oh never mind it was OK last time. Quote Link to comment Share on other sites More sharing options...
GeordieAndy Posted December 2, 2014 Share Posted December 2, 2014 (edited) Credit is very cheap at the moment with the latest offer from Lloyds on their credit card being the following which if you can make the money work better for you elsewhere for the interest free period of 2.5 years that they will lend you it interest free (1.5% fee) then it's not hard to see how people rack up such debt! 0% interest for up to the first 28 months on balances transferred within the first 90 days after your account is opened. Balance transfer fee of 1.5% applies on balances transferred within the first 90 days of opening the account, 3% fee applies thereafter. 0% interest on purchases for the first 12 months after your account is opened. Edited December 2, 2014 by GeordieAndy Quote Link to comment Share on other sites More sharing options...
zugzwang Posted December 2, 2014 Share Posted December 2, 2014 UK primary deficit ~7% p.a. UK national debt interest ~4% p.a. UK mortgage debt increase ~6% p.a. UK unsecured credit growth ~7% p.a. Gidiot's back-from-disaster re-balancing act. Quote Link to comment Share on other sites More sharing options...
GinAndPlatonic Posted December 2, 2014 Share Posted December 2, 2014 Barclays keep offering me £7,500 at 3.8% over five years. I think to myself what could I do with that..then think wow five years is such a long time to be paying it back...chri st only knows what it feels like to be in hock for 30 years with a massive mortgage Quote Link to comment Share on other sites More sharing options...
Cid Posted December 2, 2014 Share Posted December 2, 2014 Can't say I blame them. Load up on debt, scream murder when bill due, go bankrupt, wait a few years. Rinse, Repeat. Quote Link to comment Share on other sites More sharing options...
Saving For a Space Ship Posted December 2, 2014 Share Posted December 2, 2014 (edited) Can't say I blame them. Load up on debt, scream murder when bill due, go bankrupt, wait a few years. Rinse, Repeat. I'm sure there are exceptions, but I'm not sure about the "rinse , repeat" these days. In recent times, even when I was quoted to take out home insurance, one of the first questions was " have you ever been bankrupt ? " Edited December 2, 2014 by Saving For a Space Ship Quote Link to comment Share on other sites More sharing options...
nnails Posted December 2, 2014 Share Posted December 2, 2014 I dont have credit card but i have had two posted to me in the last few week and an application for master card the other day. Quote Link to comment Share on other sites More sharing options...
MarkG Posted December 2, 2014 Share Posted December 2, 2014 I dont have credit card but i have had two posted to me in the last few week and an application for master card the other day. Mine keeps sending me letters offering to increase my credit limit, which is bizarre when I've never even come close to the current limit. Quote Link to comment Share on other sites More sharing options...
shindigger Posted December 2, 2014 Share Posted December 2, 2014 Nothing, it's a perfect plan. Nothing can go wrong! I loved this bit. If the US and Europe raise rates for any reason (yes, seems very unlikely at the moment) we will have to follow suit, wherever the BOE want to or not! Vote Labour. Get it over with. Quote Link to comment Share on other sites More sharing options...
Guest UK Debt Slave Posted December 2, 2014 Share Posted December 2, 2014 A certain sign of consumer distress and lack of disposable income. The economy is going down, basically. It's going to get exceptionally nasty this time. Same ol same ol! Incredible isn't it! Quote Link to comment Share on other sites More sharing options...
Guest UK Debt Slave Posted December 2, 2014 Share Posted December 2, 2014 Vote Labour. Get it over with. You must be fekkn joking I hope you are joking! Quote Link to comment Share on other sites More sharing options...
Giraffe Posted December 2, 2014 Share Posted December 2, 2014 "The Bank of England has indicated that still high consumer debt levels are an important factor why it will only raise interest rates gradually over the longer term," added Mr Archer. It's a cracker! So you keep interest rates artificially low because of high debt levels, which allows indebted individuals to borrow more increasing their debt levels, meaning interest rates must remain low due to high debt levels......etc etc. We are so fecked. Quote Link to comment Share on other sites More sharing options...
Giraffe Posted December 2, 2014 Share Posted December 2, 2014 What a monster they have created. I'm in the 'interest rates will never rise' camp. We will be in the next crisis, which will be an order of magnitude larger than the last before interest rates rise. Quote Link to comment Share on other sites More sharing options...
MarkG Posted December 3, 2014 Share Posted December 3, 2014 What a monster they have created. I'm in the 'interest rates will never rise' camp. We will be in the next crisis, which will be an order of magnitude larger than the last before interest rates rise. "There is no means of avoiding the final collapse of a boom brought about by credit expansion. The alternative is only whether the crisis should come sooner as the result of voluntary abandonment of further credit expansion, or later as a final and total catastrophe of the currency system involved." Looks like they've picked the latter option. Quote Link to comment Share on other sites More sharing options...
stuckmojo Posted December 3, 2014 Share Posted December 3, 2014 At the first interest rate rise, the huge number of families living to the last 5 quid of credit per month will go under. And with them, the entire economy. Quote Link to comment Share on other sites More sharing options...
spyguy Posted December 3, 2014 Share Posted December 3, 2014 IRs don't just rise cos of inflation. Sometimes they rise cos the country struggles to fund its deficit. Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted December 3, 2014 Share Posted December 3, 2014 debt is for idiots. individually, yes. But when the idiots are large enough to form a voting block the govt kowtows too... Quote Link to comment Share on other sites More sharing options...
Executive Sadman Posted December 3, 2014 Share Posted December 3, 2014 IRs don't just rise cos of inflation. Sometimes they rise cos the country struggles to fund its deficit. If there is an absence of inflation (or even if inflation is present, but is still low enough to lie about) they'll just force the creation of new debt themselves to fund the deficit as they have done the past few years. No inflation, no IR rises. Quote Link to comment Share on other sites More sharing options...
spyguy Posted December 3, 2014 Share Posted December 3, 2014 (edited) If there is an absence of inflation (or even if inflation is present, but is still low enough to lie about) they'll just force the creation of new debt themselves to fund the deficit as they have done the past few years. No inflation, no IR rises. Not really. External creditors sell the pound and/or ask for higher yields. If the BoE/gov responds by printing more money then the pound will crash and yields shoot up. Devaluing your currency does not really work as it used to, or at least as people thought it did esp. for an advanced (cough) open economy. Edited December 3, 2014 by spyguy Quote Link to comment Share on other sites More sharing options...
interestrateripoff Posted December 3, 2014 Author Share Posted December 3, 2014 http://www.zerohedge.com/news/2014-12-02/middle-class-spending-crash-explained As The Wall Street Journal reports, Consumer spending continues to make up just over two-thirds of the U.S. economy. But where households spend that money has shifted significantly. To see how it has moved, the Journal analyzed Labor Department data on 2013 out-of-pocket spending for the middle 60% of the population by income—households earning between about $18,000 and $95,000 a year, before taxes. The data show they are losing ground. Overall spending for the group rose by about 2.3% over the six-year period from 2007, even as inflation totaled about 12% . At the same time, income for the group stagnated, rising less than half a percent. With health care and other costs rising, these consumers spent less on furniture, entertainment, clothing and even child care, the Journal analysis found. It seems the problems are contagious. Quote Link to comment Share on other sites More sharing options...
Recommended Posts
Join the conversation
You can post now and register later. If you have an account, sign in now to post with your account.