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Realistbear

Lloyds T S B Retail Profit Slumps 7%

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http://news.bbc.co.uk/1/hi/business/4746040.stm

Bad debts rising for Lloyds TSB

More customers are struggling to pay off debts.
Lloyds TSB has reported a 4% rise in pre-tax profits, but saw bad debts hit earnings at its High Street operations.
Retail banking profits fell 7% to £1.53bn for the full year, as
more customers struggled to repay debts
.
Its provisions for non-performing loans rose to £150m from £100m, and Lloyds said
it expected the retail credit environment to deteriorate further.

The "miracle economy" comes at a price: DEBT

How much more can the debt laden population take as the curse of HPI tightens its grip and begins to reap its grim harvest of bankruptcy.

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Still low compared to overall profit.

Their rates are now an extra 0.05% in their favour, may not sound much, but more than enough to cover bad debts.

Edited by erd

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But it looks as if the UK debt problem is held by relatively few with huge amounts of debt. How many of these are students/graduates and not necessarily homeowners?

http://www.sky.com/skynews/article/0,,30400-13510609,00.html

quote: "Nearly half of adults are currently in debt, owing money on a variety of credit cards and loans, according to market analyst Mintel.

While a quarter of borrowers had debts of less than £500, it found 8% owed between £10,001 and £20,000.' end quote

Not trying to play down the debt figures as they are terrifying......but not everyone is at dooms door.......it is a small %.

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Debt only becomes a problem when debtors cannot repay. Right now IR are low. When credit tightens, as it must, the squeeze will force more over the edge into insolvency. With a house price correction comes negative equity for those who bought in at the end of the economic cycle. As debt outweighs equity more problems follow as there is less money to MEW into the economy. Less spending fuels the problem as unemployment grows causing further default. The massive credit driven expansion of the Brown years (Miracle years) are clearly drawing to a close and someone has to pay the trillion+ pound bill.

Edited by Realistbear

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But it looks as if the UK debt problem is held by relatively few with huge amounts of debt. How many of these are students/graduates and not necessarily homeowners?

http://www.sky.com/skynews/article/0,,30400-13510609,00.html

quote: "Nearly half of adults are currently in debt, owing money on a variety of credit cards and loans, according to market analyst Mintel.

While a quarter of borrowers had debts of less than £500, it found 8% owed between £10,001 and £20,000.' end quote

Not trying to play down the debt figures as they are terrifying......but not everyone is at dooms door.......it is a small %.

A further 5% had borrowed more than £20,000.

13% owe over 10k, I wouldn't say thats low. And, that excludes people in the 5k-10k bracket, of which

I'm sure there are even more.

Debt is a problem.

http://www.creditaction.org.uk/debtstats.htm

Edited by Come On Down

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  • 301 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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