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Is Britain's £73billion credit card bubble about to burst?

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Bank of England fears as UK debt rises to equivalent of £1,400 per person

Banks have seen a 'significant increase' in customers defaulting on credit cards since the start of this year.

The rise in those unable to pay their bills sparked fears Britain's £73billion plastic debt timebomb is about to go off.

Daily Mail

 

Spending on plastic is fantastic, until it isn't.

 

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19 minutes ago, rollover said:

 

Spending on plastic is fantastic, until it isn't.

 

Isn't there record employment? What's going on? A real headscratcher. 

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Steve Keene has some views on private debt and when it reaches the peak and the effect on asset prices and the economy....he's been warning of Oz meltdown for some time....their property market is imploding...they are all maxxed out..mortgages...car loans...crdit cards...then your economy contracts...no more money or credit to keep increasing the spending....

Edited by Spindler

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1 minute ago, Ghostly said:

Isn't there record employment? What's going on? A real headscratcher. 

all my working life wages increased until 2007...and have barely moved since..rail costs have doubled....housing costs through the roof ...etc etc....theres the clue...pull the rubber band until it snaps

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30 minutes ago, rollover said:

 

Spending on plastic is fantastic, until it isn't.

 

It is fantastic for the businesses that would have seen less business if credit card debt was not available.....it is fantastic for those who spend and do not repay.......it is fantastic for lenders who create the debt from nothing and gain from charging high interest on the new created money, fantastic that they take a charge from every transaction from the businesses where the credit card debtor uses the card .......the risk of non payment by some individuals is factored into the total gains made from providing the service.....;)

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32 minutes ago, winkie said:

It is fantastic for the businesses that would have seen less business if credit card debt was not available.....it is fantastic for those who spend and do not repay.......it is fantastic for lenders who create the debt from nothing and gain from charging high interest on the new created money, fantastic that they take a charge from every transaction from the businesses where the credit card debtor uses the card .......the risk of non payment by some individuals is factored into the total gains made from providing the service.....;)

 But add to that the zombie corporations who should have gone bust(inc banks) in 2008 benefitting from low rates and printed money...these are still with us....not healthy businesses and now spending/credit contraction...

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57 minutes ago, Spindler said:

all my working life wages increased until 2007...and have barely moved since..rail costs have doubled....housing costs through the roof ...etc etc....theres the clue...pull the rubber band until it snaps

I really can't understand what the political class are thinking. Surely it's obvious to anybody that increasing the cost of essentials relative to median wages for decades on end is going to significantly decrease living standards for the median household and eventually result in a major electoral backlash. What on earth were they thinking? It doesn't matter for now because our rich mates will coin it while the wealth transfer process is ongoing and we will all clear off before the backlash comes? It's the private equity model but on the scale of an entire nation.

Edited by Dorkins

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think you nailed it....jeff fairburn with his 100 million etc.....they simply cant help themselves they don;t think long term except about themselves.....

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4 minutes ago, Spindler said:

think you nailed it....jeff fairburn with his 100 million etc.....they simply cant help themselves they don;t think long term except about themselves.....

It just seems so crazy - a country of 66 million people run for the benefit of Jeff Fairburn and perhaps a hundred thousand others like him who have managed to wedge themselves closest to the money spout. Ideas like rewarding productivity or making sure everybody at least has the basics have all gone out the window, now it's just everybody watching helplessly while the 0.1% grab everything they can by whatever semi-legal method they can exploit. Totally broken.

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Like all debts, they only turn bad if the debtor loses the ability to repay. Lending criteria for personal debt was tightened up after the last financial meltdown, but the risk factors in corporate debt will be the critical factor with the next meltdown..._

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It's like just free party for some, on top of the credit cards debts.

 

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Britain's payday loan hotspots revealed as high cost credit addiction sees debts spiral to over £1billion

Wonga may have kicked the bucket but Britain's unhealthy reliance on payday loans is still very much alive - and it's getting worse.  

New data, seen exclusively by This is Money, has revealed the full extent of the country's payday loan addiction, with UK borrowers racking up astronomically expensive debts surpassing the billion pound mark last year.

12383638-6927253-In_the_red_-a-18_155549

Daily Mail

 

 

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6 hours ago, Dorkins said:

I really can't understand what the political class are thinking. Surely it's obvious to anybody that increasing the cost of essentials relative to median wages for decades on end is going to significantly decrease living standards for the median household and eventually result in a major electoral backlash. What on earth were they thinking? It doesn't matter for now because our rich mates will coin it while the wealth transfer process is ongoing and we will all clear off before the backlash comes? It's the private equity model but on the scale of an entire nation.

significantly decrease living standards for the median household
Become racist, uneducated, do not know the facts and colluding manipulated by Russians

Let them eat cake!

Edited by Fromage Frais

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5 hours ago, Dorkins said:

It just seems so crazy - a country of 66 million people run for the benefit of Jeff Fairburn and perhaps a hundred thousand others like him who have managed to wedge themselves closest to the money spout. Ideas like rewarding productivity or making sure everybody at least has the basics have all gone out the window, now it's just everybody watching helplessly while the 0.1% grab everything they can by whatever semi-legal method they can exploit. Totally broken.

I always comes at a crisis.  FLS, HTB QE etc

They tell the voters "its complicated" which I always take as "we think you are thick and we are going to do as we like".

Then the money men persuade our politicians helping them is most important thing they can do.

Capitalism suspended > Oligarchy achieved   

Edited by Fromage Frais

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Just like houses the credit bubble can't be popped, only a few outliers can be allowed to go under. Probably best to have a moderate to high level of debt then when the hyper inflation comes you'll be bailed out. Disgusting, but can't see it playing out any other way.

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On ‎20‎/‎04‎/‎2019 at 09:58, Dorkins said:

It just seems so crazy - a country of 66 million people run for the benefit of Jeff Fairburn and perhaps a hundred thousand others like him who have managed to wedge themselves closest to the money spout. Ideas like rewarding productivity or making sure everybody at least has the basics have all gone out the window, now it's just everybody watching helplessly while the 0.1% grab everything they can by whatever semi-legal method they can exploit. Totally broken.

Are the sheeple watching helplessly though? seems to be masses of people forever shopping, expensive cars and holidays - and there not all boomers who bought property cheap.

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  • 293 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%



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