Jump to content
House Price Crash Forum
macca13

Household debt record highs

Recommended Posts

Per household, not per person.

Still indicates that the 'prosperity' and 'wealth' we have are  in reality nothing more than a gross pile of chronic debt in the vast majority of cases, fuelling the main activity of the country which is now the extraction of economic rent in all its forms.

Also car 'sales', well 90% of them are leases - more illusory prosperity and another problem being stored forward as auto sellers find there's no-one to buy their PCP returns...

A world of debt and delusion.

Share this post


Link to post
Share on other sites

A world of monthly pay slips in and monthly DDs of debt, rent, subs, bills, payments and promises out.....buy now pay later, rent forever.;)

Share this post


Link to post
Share on other sites

I seem to remember back in 2010-ish that people were being sensible and paying down their debts.  So they dropped interest rates in the hope that people would do the right thing for their country by stopping all that selfish saving and blow some dosh on consumer tat.

Brexit is going to be the best excuse politicians have ever had for the wheels falling off the economy.  It's going to be just like the random financial bad weather that blew in from America and ended Brown's "no more boom and bust" miracle economy.  Different party, same old rubbish.

Share this post


Link to post
Share on other sites
50 minutes ago, prozac said:

Good post macca 

Nice to hear your New Years resolution 

‘ you will stop being racist ‘

 

Not a racist I’m a realist.. 

i don’t sugar coat everything.. 

we are overpopulated, you can deport white wasters for all I care.. 

like ive said female genital mutilation, child brides, forced arrange marriage, community segregationWith 3,000 people under active investigation and a further 20,000 individuals on a terrorist watch list

You can play your racist card as much as you like, immigration has had a devastating effect on our country!!

Concrete blocks on our bridges and around government buildings it’s more like Basra than Britain..

Share this post


Link to post
Share on other sites
1 hour ago, macca13 said:

House hold debt reaches an average of 15k per person not including mortgages 

car sales down 7%

shops failing/less jobs!

Nothing to do with Brexit! 

https://www.thisismoney.co.uk/money/cardsloans/article-6565233/Household-debt-crisis-level-hits-new-high-15-000.html

And throughout the day and yet again I heard on the car radio "not mortgage debt, mortgage debt is perfectly OK".

They just cannot see or refuse to acknowledge the correlation of paying a 6 x salary on an ex crack den 30 miles from your home town and trying to pay all your other essential bills,

Share this post


Link to post
Share on other sites
56 minutes ago, macca13 said:

Not a racist I’m a realist.. 

i don’t sugar coat everything.. 

we are overpopulated, you can deport white wasters for all I care.. 

like ive said female genital mutilation, child brides, forced arrange marriage, community segregationWith 3,000 people under active investigation and a further 20,000 individuals on a terrorist watch list

You can play your racist card as much as you like, immigration has had a devastating effect on our country!!

Concrete blocks on our bridges and around government buildings it’s more like Basra than Britain..

Hold on, didnt Labour import all the above?

Share this post


Link to post
Share on other sites
8 minutes ago, spyguy said:

Hold on, didnt Labour import all the above?

I even remember Claire Short getting angry over the mass immigration Labour invited in, that's how bad it was

Share this post


Link to post
Share on other sites
2 hours ago, localhero1983 said:

And throughout the day and yet again I heard on the car radio "not mortgage debt, mortgage debt is perfectly OK".

I think this is because the only beneficiaries of other debts are lenders / banks. With housing on the other hand, the borrowers can (comparatively) benefit as well with HPI etc. so it's easier for banks et al. to get the population on board and use them. Instilling economic rent seeking into the culture so that everyone wants to be a spiv.

The money going towards pumped up housing, can consequently cause a lack of cash flow, which means for other non-housing essentials people need to use more debt, but not just borrowers, all kinds of others affected by the high costs of housing.....more new customers for the lenders. It's a win win for the lenders / banks. It's a proper stitch up.

Edited by Arpeggio

Share this post


Link to post
Share on other sites
1 hour ago, spyguy said:

Hold on, didnt Labour import all the above?

Mr 90 BTL’s, war criminal Blair invited allot of people, but it’s been going on for a long time and has not improved since Tories came to power.. 

my point to Prozac was he Keeps calling me a racist even when I’m just stating facts.. 

Share this post


Link to post
Share on other sites
3 hours ago, prozac said:

Good post macca 

Nice to hear your New Years resolution 

‘ you will stop being racist ‘

It would be an assumption to think that you view any criticism of immigration as racist. Therefore to avoid future confusion you should give us your mandate of what is acceptable criticism of immigration. Either your own list or a link to one you agree with.

Failure to do this without any rational explanation will leave the option open that you think any criticism of immigration is racist.

Edited by Arpeggio

Share this post


Link to post
Share on other sites
2 hours ago, localhero1983 said:

And throughout the day and yet again I heard on the car radio "not mortgage debt, mortgage debt is perfectly OK".

They just cannot see or refuse to acknowledge the correlation of paying a 6 x salary on an ex crack den 30 miles from your home town and trying to pay all your other essential bills,

Ill have to trawl for figures but i think youll find mortgage debt has been falling for quite sometime.

More people are clearing mortgages than are taking new ones out.

Share this post


Link to post
Share on other sites
10 minutes ago, spyguy said:

Ill have to trawl for figures but i think youll find mortgage debt has been falling for quite sometime.

More people are clearing mortgages than are taking new ones out.

Probably true, and more than half of UK households  are not mortgaged. So that means there is a sizeable minority out there with some big mortgages

Share this post


Link to post
Share on other sites

It's a bit of an artificial distinction, especially for anyone with an offset mortgage as we have.  If I have a £100k offset IO mortgage and pay off £50k of my mortgage then I automatically get a £50k overdraft limit on the tied-in current account.  If I then spend that overdraft on a new car I'm back where I started, paying mortgage interest on £100k, but my outstanding mortgage is only £50k.

Even for people with a simple mortgage, every £1 spent on tat is money that could have paid the mortgage off.  It's all the same stuff, just money owed.

Perhaps mortage debt is reducing while personal debt is increasing due to tightening of mortgage lending policies?  In the good old days before 2008 you could spend all you liked on the credit card then, when it reached its limit, just increase the mortgage to pay it off and start again.  Those days have largely gone, so perhaps people are being left lumbered with personal debt these days.

Share this post


Link to post
Share on other sites

In my job I visit about 500 domestic addresses a day.

Many of these houses are worth £2-300k or more (the local average price for my area is £156k)

 

It amazes me how big a proportion of these expensive houses are shabby and rundown, where the owners obviously can't afford even the most basic maintenance and repairs... rotten doors and windows, leaking gutters, crumbling render, jungle gardens, threadbare carpets etc

 

It reminds me of that episode of ''Cant Pay We'll Take it Away'' where the Sheriffs visited a huge and relatively new house in the West Mids worth about £600k that was very tired and basic outside and in... if I recall correctly the debt was only around £1,400 yet the debtors were scrabbling around and phoning friends and family to try and scrape the money together (and to top it off the debtor was an accountant!)

Share this post


Link to post
Share on other sites
2 hours ago, nome said:

In my job I visit about 500 domestic addresses a day.

Many of these houses are worth £2-300k or more (the local average price for my area is £156k)

 

It amazes me how big a proportion of these expensive houses are shabby and rundown, where the owners obviously can't afford even the most basic maintenance and repairs... rotten doors and windows, leaking gutters, crumbling render, jungle gardens, threadbare carpets etc

 

It reminds me of that episode of ''Cant Pay We'll Take it Away'' where the Sheriffs visited a huge and relatively new house in the West Mids worth about £600k that was very tired and basic outside and in... if I recall correctly the debt was only around £1,400 yet the debtors were scrabbling around and phoning friends and family to try and scrape the money together (and to top it off the debtor was an accountant!)

Great post. I saw very many similar episodes, can’t pay take it away is a gem of a show. 

i guess most owners bought very cheaply a long time ago, and have suffered poor wage growth compared to cost of living like the rest of us.

highlights how unsustainable high house prices are without emergency rates. 

Share this post


Link to post
Share on other sites

And another thing worth mentioning.

After the 2018 financial crisis many mortgaged homeowners were thrown a dream lifeline in the form of having close to zero housing costs in many cases when mortgage payments were drastically cut and many had what was in effect free housing. If these people have not been able to balance their financial affairs after all this time they deserve everything that is coming their way, zero sympathy with me.

Share this post


Link to post
Share on other sites
19 hours ago, prozac said:

Nice to hear your New Years resolution 

‘ you will stop being racist ‘

Nothing racist about that - the fact is that since 3m EU nationals came into the UK it has put enormous pressure on rents and prices - that is the simple law of supply and demand

I own my own business and when trying to recruit I have had to tell the agent not to send me people who cannot speak perfect English and do not have perfect grammar to enable them to send e mails and letters.,

That eliminates the vast majority of EU nationals.  All of my staff are expected to communicate with customers so anyone who cannot do so in perfect English is useless to me. 

I also am a realist and hardly a racist as my partner is German.  She is however a doctor who speaks perfect English and pays a lot of tax.

I have no issue at all with migrants with skills coming to the UK but someone who cannot speak the language and has the skills only tom work in  Costa Coffee is worthless in terms of the job market.  

17 hours ago, spyguy said:
18 hours ago, macca13 said:

Not a racist I’m a realist.. 

i don’t sugar coat everything.. 

we are overpopulated, you can deport white wasters for all I care.. 

like ive said female genital mutilation, child brides, forced arrange marriage, community segregationWith 3,000 people under active investigation and a further 20,000 individuals on a terrorist watch list

You can play your racist card as much as you like, immigration has had a devastating effect on our country!!

Concrete blocks on our bridges and around government buildings it’s more like Basra than Britain..

Hold on, didnt Labour import all the above?

Yes they let immigrants pour in with no skills and no worth in the job market and they have a leader who flies to Tunisia to worship at the grave of a terrorist 

Share this post


Link to post
Share on other sites
4 hours ago, winkie said:

If debts are growing so must DROs and IVAs?😉

Make what you will of the chart.

DRO's are fairly new & only usable by people with no real assets + limit £20k in debt but the numbers are pretty steady. Usage is probably driven by people going to CAB/Stepchange so expected to be pretty steady. 

IVA's are a good barometer of people who've overspent on cards/loans but naively think an IVA will let them keep their home.  

 

bust.PNG

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 295 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.