RichM Posted February 24, 2006 Share Posted February 24, 2006 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. Quote Link to comment Share on other sites More sharing options...
Shamus Posted February 24, 2006 Share Posted February 24, 2006 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 I can replace my out of date tat (repossessed crap) from China with brand new crap??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!! Quote Link to comment Share on other sites More sharing options...
erd Posted February 24, 2006 Share Posted February 24, 2006 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 Quote Link to comment Share on other sites More sharing options...
Once in a lifetime Posted February 24, 2006 Share Posted February 24, 2006 Quote Link to comment Share on other sites More sharing options...
CrashBear Posted February 24, 2006 Share Posted February 24, 2006 I don't think most people take debt seriously enough to be honest. Quote Link to comment Share on other sites More sharing options...
RichM Posted February 24, 2006 Author Share Posted February 24, 2006 That is inspired! Did you do it? Can we put it on the front page of the site??? Quote Link to comment Share on other sites More sharing options...
beenhearingthisforyears Posted February 24, 2006 Share Posted February 24, 2006 (edited) 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 February 24, 2006 by beenhearingthisforyears Quote Link to comment Share on other sites More sharing options...
Fancypants Posted February 24, 2006 Share Posted February 24, 2006 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? Quote Link to comment Share on other sites More sharing options...
RichM Posted February 24, 2006 Author Share Posted February 24, 2006 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 Quote Link to comment Share on other sites More sharing options...
homeless Posted February 24, 2006 Share Posted February 24, 2006 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. Quote Link to comment Share on other sites More sharing options...
Fancypants Posted February 24, 2006 Share Posted February 24, 2006 (edited) 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? (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" ) Edited February 24, 2006 by Fancypants Quote Link to comment Share on other sites More sharing options...
karhu Posted February 24, 2006 Share Posted February 24, 2006 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 Quote Link to comment Share on other sites More sharing options...
?...! Posted February 24, 2006 Share Posted February 24, 2006 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. What a man It doesn't take much bad debt to F*ck us all. Quote Link to comment Share on other sites More sharing options...
CaptainClamp Posted February 24, 2006 Share Posted February 24, 2006 Have a look here: http://www.financialsense.com/stormwatch/o.../2004/0804.html Good article. I like financialsense a lot, though they have a lot of contributors and some are definitely more readable than others. Quote Link to comment Share on other sites More sharing options...
jp1 Posted February 24, 2006 Share Posted February 24, 2006 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 Quote Link to comment Share on other sites More sharing options...
Cheston Pelvis Posted February 24, 2006 Share Posted February 24, 2006 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. Quote Link to comment Share on other sites More sharing options...
RichM Posted February 24, 2006 Author Share Posted February 24, 2006 Steyn is gone? though I hadnt seen anything by him recently - shame, I really like him He has a website though Check it everyday. Hilarious guy. Very right wing, and why not? He's not a racist and he loves musicals Quote Link to comment Share on other sites More sharing options...
coolaftershave Posted February 24, 2006 Share Posted February 24, 2006 That is inspired! Did you do it? Can we put it on the front page of the site??? Hope you dont mind... have added it to a list I am forming of good email attachments to send to your mates on another thread. http://www.housepricecrash.co.uk/forum/ind...0&gopid=306897& CAS Quote Link to comment Share on other sites More sharing options...
StainlessSteelCat Posted February 24, 2006 Share Posted February 24, 2006 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? (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" ) 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. Quote Link to comment Share on other sites More sharing options...
BillyShears Posted February 24, 2006 Share Posted February 24, 2006 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 Quote Link to comment Share on other sites More sharing options...
Come On Down Posted February 24, 2006 Share Posted February 24, 2006 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. Mr General Public has no financial savvy in general. They will borrow to have the life that the marketing men want them to have. Quote Link to comment Share on other sites More sharing options...
bandylegs Posted February 24, 2006 Share Posted February 24, 2006 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. 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. Quote Link to comment Share on other sites More sharing options...
?...! Posted February 24, 2006 Share Posted February 24, 2006 (edited) 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 February 24, 2006 by ?...! Quote Link to comment Share on other sites More sharing options...
Once in a lifetime Posted February 24, 2006 Share Posted February 24, 2006 That is inspired! Did you do it? Can we put it on the front page of the site??? Yes I did, I'd be honoured. Quote Link to comment Share on other sites More sharing options...
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