Jump to content
House Price Crash Forum
Sign in to follow this  
RichM

How Living In Debt Is A Lifestyle Choice For Millions

Recommended Posts

How living in debt is a lifestyle choice for millions

Almost half of adults (44 per cent) owe money on a variety of credit and loan products, not including mortgages, according to the research by Mintel, the consumer analysts.

While a quarter of borrowers have debts of less than £500, eight per cent owe between £10,001 and £20,000, and a further five per cent have borrowed more than £20,000.

That adds up to around one in eight (13 per cent) borrowers - or 2.5 million adults - having total debts in excess of £10,000.

But it's not a big deal 'cos they can just MEW if they want to, innit?

On top of that, 70 per cent of those who owe more than £10,000 are not concerned about their level of debt and one in four might consider borrowing more.

:lol::lol::lol:

Share this post


Link to post
Share on other sites

Yeah but...

Can't we just carry on spending and then go bankrupt if need be?

That way after a year I can start the debt merry-go-round again??

I can replace my out of date tat (repossessed crap) from China with brand new crap??

After all spending in the shops (at any cost) is what we all have to do as a nation if we are to keep this proud country alive!!

Share this post


Link to post
Share on other sites

Yeah but...

Can't we just carry on spending and then go bankrupt if need be?

That way after a year I can start the debt merry-go-round again??

I think a lot of people following this will be in for a shock! They will find that either they can't get more debt, or that they will find a 5% interest premium on the debt they can get.

Suckers :lol:

Share this post


Link to post
Share on other sites

quote: "While a quarter of borrowers have debts of less than £500, eight per cent owe between £10,001 and £20,000, and a further five per cent have borrowed more than £20,000.

That adds up to around one in eight (13 per cent) borrowers - or 2.5 million adults - having total debts in excess of £10,000." end quote

I honestly thought the % would be higher. how many of those 2.5 million adults are students? or graduates? And who's to say they are homeowners???? And "a quarter of borrowers have debts of less than £500"..................

i posted earlier this week "is the uk debt problem as bad as this forum thinks it is?"

these figures seems to suggest a few borrrowers owe huge amounts of money. does anyone agree with me??

Edited by beenhearingthisforyears

Share this post


Link to post
Share on other sites

what with the carry trade article (in the blog) and this one - plus the consistent bearish tones of the past few months - I'm actually growing to like the Torygraph? I feel shame and confusion... I can't talk to my loved ones about this... should I seek help?

Share this post


Link to post
Share on other sites

what with the carry trade article (in the blog) and this one - plus the consistent bearish tones of the past few months - I'm actually growing to like the Torygraph? I feel shame and confusion... I can't talk to my loved ones about this... should I seek help?

Torygraph's great. Boris Johnson, Armando Ianucci and Mark Steyn got me hooked. Sadly AI and MS are gone now. Simon Heffer is a pretty good replacement

i posted earlier this week "is the uk debt problem as bad as this forum thinks it is?"

these figures seems to suggest a few borrrowers owe huge amounts of money. does anyone agree with me??

Yes

Share this post


Link to post
Share on other sites

i think debt up to 500 pound should realy be discarded, i consider myself completely debt free even though there is 200 quid outstanding on my credit card.

i also think they figures fail to take into account the a huge portion of debt has been taking with MEW more than credit cards, this wont be giving in these figures just un-secured debt.

by the way my dad has just helped the credit cause

hes just gone belly up with

wait for it

wait

wait

72k in credit card debt and a 10k bank loan

all un-secured, all got by declaring his own income

hes 62, self employed and now on the sick. they wont see a penny of that im sure.Hes not proud of it but thought i would mention as a personal antidote whats happening out there.

Share this post


Link to post
Share on other sites

Torygraph's great. Boris Johnson, Armando Ianucci and Mark Steyn got me hooked. Sadly AI and MS are gone now. Simon Heffer is a pretty good replacement

I'm a dyed in the wool leftie though, I even have posters of Scargill and Red Ken up in my bedroom and my undergarments are exclusively scarlet. Mind you, I do appreciate Boris - I might buy it this weekend and have a bouchers... don't tell anyone though, please? :ph34r:

(besides, Grauniad and Independent are clearly part of the vapid Islington orthodoxy that turns my parochial fundamentalist stomach. Of course! The Torygraph! What a perfect contrarian solution! In your face nu-leftist "intelligensia" :P)

Edited by Fancypants

Share this post


Link to post
Share on other sites

what with the carry trade article (in the blog) and this one - plus the consistent bearish tones of the past few months - I'm actually growing to like the Torygraph? I feel shame and confusion... I can't talk to my loved ones about this... should I seek help?

Have a look here:

http://www.financialsense.com/stormwatch/o.../2004/0804.html

Share this post


Link to post
Share on other sites

i think debt up to 500 pound should realy be discarded, i consider myself completely debt free even though there is 200 quid outstanding on my credit card.

i also think they figures fail to take into account the a huge portion of debt has been taking with MEW more than credit cards, this wont be giving in these figures just un-secured debt.

by the way my dad has just helped the credit cause

hes just gone belly up with

wait for it

wait

wait

72k in credit card debt and a 10k bank loan

all un-secured, all got by declaring his own income

hes 62, self employed and now on the sick. they wont see a penny of that im sure.Hes not proud of it but thought i would mention as a personal antidote whats happening out there.

By the laws of fractional reserve lending thats 90K less lending power for his bank. At 7% APR thats £6,300 less profits for them next year, on top of the £10,000 they have to write off.

£72,000 written off as oustanding on credit cards means £648,000 less lending power for his credit card company at 15% APR thats £97,200 profits per year he cost them.

At 30% corporation tax I think you Dad just cost the government £31,050 per year on taxing the banks profits alone. :o

What a man <_<

It doesn't take much bad debt to F*ck us all.

Share this post


Link to post
Share on other sites

Torygraph's great. Boris Johnson, Armando Ianucci and Mark Steyn got me hooked. Sadly AI and MS are gone now. Simon Heffer is a pretty good replacement

Steyn is gone? though I hadnt seen anything by him recently - shame, I really like him

He has a website though

Share this post


Link to post
Share on other sites

Was chatting to a few colleagues yesterday about easy credit and the risky ploy of "living for today". The stories I heard raised my eyebrows somewhat:

A chum of one of the guys I work with earns a fair old whack and so does his wife. They live in a particularly huge house somewhere in Norfolk and are both approaching retirement age. Despite bringing in two large salaries they still live well beyond their means and it's all down to credit and equity release. It's SKI-ing on a grand scale. Their justification is that when they pop their clogs they will use the house to pay off the debts and anything that is left over will go to their (already quite wealthy) offspring. The consensus was that this was okay: "Hey, it's their money. Nobody's getting hurt. Anyway the banks keep offering them the cash. Etc etc". Another piped up to say that his Dad's doing pretty much the same thing.

I'm of the opinion that "living for today" is alright so long as you die tomorrow. Personally I would rather live a life of relative comfort than spunk all my cash away just so I can live it up for a year (and to do it on credit is a hell of a risk - the goalposts can be moved far too easily). The thought of being a doddering octogenarian shuffling around a state-run $h!th0l€ of a care home with a Celtic-band tattoo fading nicely into the wrinkles on my arm while near-psychotic interns randomly abuse me doesn't exactly appeal to me.

Or maybe I'm the only one. <_<

Share this post


Link to post
Share on other sites

I'm a dyed in the wool leftie though, I even have posters of Scargill and Red Ken up in my bedroom and my undergarments are exclusively scarlet. Mind you, I do appreciate Boris - I might buy it this weekend and have a bouchers... don't tell anyone though, please? :ph34r:

(besides, Grauniad and Independent are clearly part of the vapid Islington orthodoxy that turns my parochial fundamentalist stomach. Of course! The Torygraph! What a perfect contrarian solution! In your face nu-leftist "intelligensia" :P)

I share your pain - I was brought up to be a Communist-anarchist. But my Dad was never above buying the Telegraph if it was cheap. After all since they assumed it would only be read by insiders it tended to be better at ripping the Thatcher/Major govt apart then any weak willed museli eating leftie paper.

His tip was to wrap it in a copy of the Sunday Sport if you didn't want to be seen carrying it home.

Personally, I only buy a DVD if it comes with a free paper nowadays.

Share this post


Link to post
Share on other sites

quote: "While a quarter of borrowers have debts of less than £500, eight per cent owe between £10,001 and £20,000, and a further five per cent have borrowed more than £20,000.

That adds up to around one in eight (13 per cent) borrowers - or 2.5 million adults - having total debts in excess of £10,000." end quote

I honestly thought the % would be higher. how many of those 2.5 million adults are students? or graduates? And who's to say they are homeowners???? And "a quarter of borrowers have debts of less than £500"..................

i posted earlier this week "is the uk debt problem as bad as this forum thinks it is?"

these figures seems to suggest a few borrrowers owe huge amounts of money. does anyone agree with me??

What's the lower limit on debt? I pay off my credit card in full each month, but use it regularly. I used it in Sainsburys last night and hence officially have debt (if not 'debtS'). Do I count in the statistics?

Billy Shears

Share this post


Link to post
Share on other sites

Was chatting to a few colleagues yesterday about easy credit and the risky ploy of "living for today". The stories I heard raised my eyebrows somewhat:

A chum of one of the guys I work with earns a fair old whack and so does his wife. They live in a particularly huge house somewhere in Norfolk and are both approaching retirement age. Despite bringing in two large salaries they still live well beyond their means and it's all down to credit and equity release. It's SKI-ing on a grand scale. Their justification is that when they pop their clogs they will use the house to pay off the debts and anything that is left over will go to their (already quite wealthy) offspring. The consensus was that this was okay: "Hey, it's their money. Nobody's getting hurt. Anyway the banks keep offering them the cash. Etc etc". Another piped up to say that his Dad's doing pretty much the same thing.

I'm of the opinion that "living for today" is alright so long as you die tomorrow. Personally I would rather live a life of relative comfort than spunk all my cash away just so I can live it up for a year (and to do it on credit is a hell of a risk - the goalposts can be moved far too easily). The thought of being a doddering octogenarian shuffling around a state-run $h!th0l€ of a care home with a Celtic-band tattoo fading nicely into the wrinkles on my arm while near-psychotic interns randomly abuse me doesn't exactly appeal to me.

Or maybe I'm the only one. <_<

:lol::lol:

Mr General Public has no financial savvy in general. They will borrow to have the life that the marketing men want them to have.

Share this post


Link to post
Share on other sites

By the laws of fractional reserve lending thats 90K less lending power for his bank. At 7% APR thats £6,300 less profits for them next year, on top of the £10,000 they have to write off.

£72,000 written off as oustanding on credit cards means £648,000 less lending power for his credit card company at 15% APR thats £97,200 profits per year he cost them.

At 30% corporation tax I think you Dad just cost the government £31,050 per year on taxing the banks profits alone. :o

What a man <_<

It doesn't take much bad debt to F*ck us all.

Christ; I'd never thought of it like that. Thanks to question mark full stops exclaimation for a serious light bulb moment for me.

Share this post


Link to post
Share on other sites

Christ; I'd never thought of it like that. Thanks to question mark full stops exclaimation for a serious light bulb moment for me.

How about the thought that it's one less Policeman on the beat?

Edited by ?...!

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...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 336 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.