bandylegs Report post Posted December 30, 2005 ... on the total amount of interest paid? The rate attracts all the attention but the total payment is just as relevant to many of our discussions. Quote Share this post Link to post Share on other sites
zorn Report post Posted December 30, 2005 ... on the total amount of interest paid? The rate attracts all the attention but the total payment is just as relevant to many of our discussions. Do you mean the interest paid on government debt by the government, or do you mean the net interest paid on all borrowing in the UK, less interest received on deposits? Quote Share this post Link to post Share on other sites
bandylegs Report post Posted December 30, 2005 Do you mean the interest paid on government debt by the government, or do you mean the net interest paid on all borrowing in the UK, less interest received on deposits? Hi Zorn, sorry not the clearest question ever. I'm after the interest paid on the trillion pounds worth of debt that is quoted so often. I'm not bothered about netting off interest received for deposits. I figure some kind of interest paid per person ratio might be of some use. Perhaps even the possibility for a chart! Quote Share this post Link to post Share on other sites
zorn Report post Posted December 30, 2005 Hi Zorn, sorry not the clearest question ever. I'm after the interest paid on the trillion pounds worth of debt that is quoted so often. I'm not bothered about netting off interest received for deposits. I figure some kind of interest paid per person ratio might be of some use. Perhaps even the possibility for a chart! It's a bit of a futile figure if you don't net off interest received. If everyone borrows another £10,000 and deposits it straight back in the bank, then the financial position doesn't change much (a bit extra paid in bank charges and interest rate spreads), but gross borrowing goes up by £600 billion. Quote Share this post Link to post Share on other sites
bandylegs Report post Posted December 30, 2005 It's a bit of a futile figure if you don't net off interest received. If everyone borrows another £10,000 and deposits it straight back in the bank, then the financial position doesn't change much (a bit extra paid in bank charges and interest rate spreads), but gross borrowing goes up by £600 billion. It's all degrees of futility Zorn but I don't think it renders the idea useless. You could net off the deposits but I don't think that the people who hold the debt are the ones who hold the deposits so if we are considering the propensity to spend it's not relevant. I'd like to be able to respond to somebody telling me "interest rates are historically low" with a factual "interest payments are historically high" but I need the facts first. I'm just at the beginning of a basic idea so I'm not going to give it up just yet; I just can't find any numbers like the ones that I want. Quote Share this post Link to post Share on other sites
CrashConnoisseur Report post Posted December 30, 2005 For consumer debt see 'Debt Facts and Figures - Compiled 1st December 2005': http://www.creditaction.org.uk/debtstats.htm According to the BBA the proportion of credit card balances bearing interest was 76.2% in September 2005.The average interest rate on credit card lending is currently 15.75%, around 11 percentage points above base rate. You could estimate the average interest rate on mortgages to be 5%. Quote Share this post Link to post Share on other sites
