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Britain In Red: More Than 1.5M Uk Households In Extreme Debt

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The Guardian: More than 1.5m UK households in extreme debt, says TUC report

About 1.6m UK households are living in extreme debt, according to a report by the TUC, which says official figures underestimate the intense burden of repayment on many families and individuals.

Contrary to official data, which suggests that households have been repaying debt accumulated before the financial crisis, the Britain in the Red report says households are finding it harder than ever to cope as wages have fallen.

“More than 1m families with a household income below £30,000 are in extreme debt and ongoing wage stagnation is making the problem worse,” the report says.

Total unsecured debt, including car loans and credit cards, but excluding mortgages, for UK households rose by £48bn between 2012 and 2015 to £353bn.

As wages declined, the real burden of repaying debt became tougher. The TUC said 3.2m households are in problem debt, defined as spending more than 25% of total household income on unsecured debt repayments.

About 1.6m households are in extreme debt, paying out 40% or more of household income to creditors.

The problem is growing fastest among the working poor, people with jobs but insufficient pay to stay financially afloat. OECD figures show that UK real wages fell by 10.4% between 2007 and 2015, making the task of keeping up debt repayments harder.

In 2015, 9% of low-income households with an adult in employment were in extreme problem debt, almost double the figure of 5% in 2014, the report found.

No mention of high house prices sucking in most of the disposable income.

Edited by Fairyland

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I wonder how well this chimes with what is being discussed on the housing benefit thread. it would be interesting to see who these people are. Are they those mugs who still believe in an honest day's work, or is it those who the state is throwing lots of money at, who have then become so feckless and useless at managing money, that nothing will ever be enough to keep them out of debt

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I wonder how well this chimes with what is being discussed on the housing benefit thread. it would be interesting to see who these people are. Are they those mugs who still believe in an honest day's work, or is it those who the state is throwing lots of money at, who have then become so feckless and useless at managing money, that nothing will ever be enough to keep them out of debt

Its people with jobs.

Brown the tnuc has turned workers into paupers and psupers into the rich.

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Its people with jobs.

Brown the tnuc has turned workers into paupers and psupers into the rich.

Probably... But, I bet some of these are those that whatever they have, they will still live beyond their means and borrow to the hilt. After all, if you haven't worked for it, you don't appreciate the true cost of money

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That is good for the economy.....think of all the businesses and firms that increased sales due to excess debt afforded to those that can't or can no longer afford to repay it, think of all the firms that made money from the high interest collected.......so they do not pay. who loses?....far many more will gain from liberal debt distributed to the masses. ;)

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A good fact.

I have been posting it in arguments with pro-EU folks.

Couple it with the official BoE report showing that high immigration was the cause of much of this fall in real wages.

Bulletproof.

...but more people mean they spend more in the shops.....that must be good for the economy, we all need to eat. ;)

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Every time i'm back in the UK it strikes me that either everyone is coining it in or a lot of people are living well beyond their means. I hope it blows up soon.

A friend of mine from abroad said the same thing...on the face of it many people are "living the dream".

They asked me why....DEBT i said.

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"problem debt, defined as spending more than 25% of total household income on unsecured debt repayments"

Does that mean they're NOT including people who've fallen for one of the "loan consolidation at low low rates, only available to homeowners!" scams?

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While high house prices/rents may contribute to this, why not just face the fact that if your household income is 30k/year, you're always going to be in debt.

That means what , a couple working on 15k each? You have to be quite incompetent and a major failure for that to happen. (please, spare me the crying drama, 15k is what you're getting for serving coffee at Costa; if that's how far you managed to get in life, you _are_ a failure)

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A good fact.

I have been posting it in arguments with pro-EU folks.

Couple it with the official BoE report showing that high immigration was the cause of much of this fall in real wages.

Bulletproof.

And what did GDP (or the total economic "growth") do during that period?

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i wonder how many of the people in debt also rely on tax credits. The scarey thing about that is that the goverment could decided to reduce them if there is major sate finacial crisis

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While high house prices/rents may contribute to this, why not just face the fact that if your household income is 30k/year, you're always going to be in debt.

That means what , a couple working on 15k each? You have to be quite incompetent and a major failure for that to happen. (please, spare me the crying drama, 15k is what you're getting for serving coffee at Costa; if that's how far you managed to get in life, you _are_ a failure)

If it's two people working. £30k for someone living on their own is easily enough.

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While high house prices/rents may contribute to this, why not just face the fact that if your household income is 30k/year, you're always going to be in debt.

That means what , a couple working on 15k each? You have to be quite incompetent and a major failure for that to happen. (please, spare me the crying drama, 15k is what you're getting for serving coffee at Costa; if that's how far you managed to get in life, you _are_ a failure)

...do not agree.....£15k coffee server and debt free, free or £30k another server of sorts and £30k debt....or £150k if taken secured. ;)

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While high house prices/rents may contribute to this, why not just face the fact that if your household income is 30k/year, you're always going to be in debt.

That means what , a couple working on 15k each? You have to be quite incompetent and a major failure for that to happen. (please, spare me the crying drama, 15k is what you're getting for serving coffee at Costa; if that's how far you managed to get in life, you _are_ a failure)

Coffe shops are a living breathing example of make work. Capital investment could replace barristas.

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what is 30k a year monthly about 1850?

so you get a mortgage if your lucky on an average house which would be about 850 a month, council tax and water is another 150 leccy and gas say another 150, broadband/ sky 50 mobiles 25 each. thats 1250 before you buy food.

we haven't even got into childcare or a car or insurances or a pension or whatever. Lots of people are using credit cards to top it up then paying the minimum. I would say 30k if your lucky too they will be pulling in the average from the UK so London will bump it up.

I think the only get out will be helicopter money

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You haven't failed if you have reached your maximum capability.

For many, the maximum they will be able to do is a Costa-type job. If they achieve this maximum, they can't be said to have failed.

Edited by Errol

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i wonder how many of the people in debt also rely on tax credits. The scarey thing about that is that the goverment could decided to reduce them if there is major sate finacial crisis

I don't see how they could ever be removed - there would be riots in the street. Good job, Brown.

Edited by LC1

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You haven't failed if you have reached your maximum capability.

For many, the maximum they will be able to do is a Costa-type job. If they achieve this maximum, they can't be said to have failed.

Well said.

I pull pints and am very happy with my lot. I wouldn't say that's a failure. I've woken up to the inflated sense of worth perpetuated by society. It's fraud on a mass scale. I'd rather be doing this with no debt than earn £40k+ and be on the hook for a £240k barrat slave box.

I've done both and I'm much happier being a 'failure', chatting to locals and serving drinks. It's too easy.

Edited by longtomsilver

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