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Loans And Overdrafts 'more Popular'

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http://www.bbc.co.uk/news/business-32049851

Borrowers are becoming more confident in taking out personal loans and overdrafts, according to the High Street banks.

Annual growth in this type of borrowing, of 4.4% in February, was the fastest in six years, the British Bankers' Association (BBA) said.

During and after the financial crisis, consumers were more cautious.

There are fears that some people in debt could suffer were interest rates to rise from their historic low.

Some people may now be deciding to borrow to make purchases that they had put off in recent years.

"Demand for loans and other types of personal borrowing is rising at its fastest rate since the financial crisis," said Richard Woolhouse, chief economist at the BBA.

"Consumers are feeling increasingly confident about buying big ticket items, such as cars or home improvements, as the recovery really begins to take hold."

Hilarious headline.

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People are running out of savings!

...savings...no they don't save, they will take it from anywhere they can get it....why wouldn't they, saving is for mugs or for those that have got all they need, got all they need no need to borrow.

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Its like 2007/8 and the run up to it was long long ago in the forgotten past.

Reduced to the status of a folk memory. Calling it the Credit Crunch was the first stroke of genius. What did that mean? Nobody knew. Scarcely weeks after the City had bankrupted itself popular opinion was demanding that the banks get lending again!

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There are fears that some people in debt could suffer were interest rates to rise from their historic low.

Funny, funny, funny, this was suppose to be a joke? Wasn't it?

Don't worry, rates are never going up, again. In fact, they are more likely to go down! Welcome to the new normal, aka Japan! :P

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The office budget responsibility report has wage inflation forecast above interest rates and CPI. It is only a forecast though.

Data wise with cpi showing 0.0% does depend on wage inflation re debt uptake. Everything is ok in the OBR forecast :)

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I read this as:

People more desperate

Borrowers are becoming more in debt confident in taking out personal loans and overdrafts, according to the High Street banks.

Annual growth in this type of borrowing, of 4.4% in February, was the fastest in six years, backed by dogdy money printing the British Bankers' Association (BBA) said.

During and after the financial crisis, consumers could borrow squat didly but were saved by low interest rates but now the cost of living has taken away that buffer were more cautious.

There are fears that some people in debt could suffer were interest rates to rise from their historic low.All the debtors, the money lenders and the media dont give a flying **** aboput savers interest rates destroying the value of their earned taxed income.

Some people may now be so desperate deciding to borrow to make ends meet purchases that they had put off in recent years.

"Demand for loans and other types of personal borrowing is rising at its fastest rate since the financial crisis," said Richard Woolhouse, chief economist at the BBA. Mainly because were giving cash away like it was sweeties, so people who have little chance of every paying it back, but hey, it's free money from the government. You've got t laugh, we are lending people their own money, us bankers just love taking the p*ss.

"Consumers are feeling increasingly confident depressed about borrowing to survive buying big ticket items, such as beans and bread cars or home improvements, as the insane money printing feeds through and the pre-eleciton lies fool many people recovery really begins to take hold."

Are these people living in a parallel universe ?

When did debt become a good thing.

Edited by TheCountOfNowhere

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Debt is there to enable people to keep spending at a cost money they have not yet earned....people will wake up when they find debt often makes them poorer not richer....many would say they are poor if they lose the ability to obtain more debt.....the system is designed as such, that is how they prefer it to be...

Many businesses would fail if their customers were unable to obtain credit.....they don't care if it is never repaid once it is spent.

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How many people do you know who have bought a car?

I know one person (a neighbour) who has brought a new car. It replaced his 11 plate which he also brought new. And a colleague at work is planning to spend another £600 on his Focus ST, just as soon as he's paid off some debts from his CC collection...

Certainly euphemistic. But also very good news - this may be the beginning of the much awaited inflationary climb.

Edited by LandOfConfusion

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The only reason to use an overdraft in 99% of cases is if YOU DON'T HAVE ANY MONEY.

How can they possibly be reporting this a good thing?

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The only reason to use an overdraft in 99% of cases is if YOU DON'T HAVE ANY MONEY.

How can they possibly be reporting this a good thing?

The very fact that you can now get an overdraft is a minor revelation. And for us more borrowing -> more inflation.

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The only reason to use an overdraft in 99% of cases is if YOU DON'T HAVE ANY ARE SPENDING LOTS OF MONEY.

Corrected for you. If you really don't have any money, you don't get an overdraft. At least, not from the kind of lender who gets bailouts.

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Debt is there to enable people to keep spending at a cost money they have not yet earned....people will wake up when they find debt often makes them poorer not richer....many would say they are poor if they lose the ability to obtain more debt.....the system is designed as such, that is how they prefer it to be...

Never figured out how people can't grasp this. Borrow more == no more actual money, but you're paying some of it to the lender as well as the people you're buying junk from, so less to spend overall. It's not exactly rocket science, unless you've got some reasonable scheme for profiting from that borrowing above what you're paying in interest.

Many businesses would fail if their customers were unable to obtain credit.....they don't care if it is never repaid once it is spent.

Borrowing that isn't paid back will probably come back to bite them in the long run though.

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Never figured out how people can't grasp this. Borrow more == no more actual money, but you're paying some of it to the lender as well as the people you're buying junk from, so less to spend overall. It's not exactly rocket science, unless you've got some reasonable scheme for profiting from that borrowing above what you're paying in interest.

Borrowing that isn't paid back will probably come back to bite them in the long run though.

As said having the ability to borrow is something people like to have as a backup/contingency plan even though they have no intention of ever using that facility.

...becoming a bankrupt may be a wake up call to many people.....thousands live a life without ever requiring a credit search, it can be done. ;)

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Debt is there to enable people to keep spending at a cost money they have not yet earned....people will wake up when they find debt often makes them poorer not richer....many would say they are poor if they lose the ability to obtain more debt.....the system is designed as such, that is how they prefer it to be...

Many businesses would fail if their customers were unable to obtain credit.....they don't care if it is never repaid once it is spent.

The debt bubble of the last 30 years has just brought forward a generation of spending.

In the 50s to the start of the 80s the UK was crumbling, Britannia no longer ruled the waves, the empire was gone. We've seen 40 years of "good times" but as with everything there is a price to pay and a limit will be reached, I think we're at that limit, we have food banks for christ sake and pay day loans, we have 30 somethings living 6 to a flat in London, we have immigrants in sheds in slough.

We've seen the first stage of the collapse. They got out of that with 0.5% interest rates and money printing, money printing that has been used to enrich the rich and not solve the problems.

The Q.E caused a big jump in inflation which has eaten away and savings people might have had with lower interest rates

It doesnt take a great thinker to see what is coming next.

Edited by TheCountOfNowhere

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