Sky: Dangerous Debt Levels For 1 In 5

[Realistbear]

http://www.sky.com/skynews/article/0,,3040...4,00.html?f=rss

Debts Spiral For Millions

Updated: 06:09, Tuesday May 02, 2006

Nearly one in five people have amassed debts of more than £10,000 on credit cards, loans, overdrafts and hire purchase agreements.

Debt solutions firm Thomas Charles found that around eight million people have unsecured debts of more than £10,000, with nearly a quarter owing six-figure sums.

Among those owing five figures, 78% had outstanding debts on credit and store cards, with more than half having at least three cards and 3% having more than 10.

Just over a fifth of people said they owed between £5,000 and £10,000 on their plastic, with 12% owing between £10,000 and £15,000 and 21% more than £15,000.

A third of people with credit card debt said they regularly applied for new cards to take advantage of low introductory interest rates, and 18% said they only paid off the minimum amount on their cards each month.

Two-thirds of people who owed more than £10,000 had a personal loan, with 57% of them owing at least £10,000 on them.

Most people had only one loan, but 19% of divorced people and 25% of people with unsecured debts of more than £30,000 had three or more.

One in four people also had a student loan, rising to 82% among the under 25s, on which they owed an average of £10,000.

People expected it to take them an average of six years to repay their unsecured debts, although 13% expected it to be at least 10 years before they cleared them.

However, 16% of people expected to go further into debt in the near future.

Thomas Charles director James Falla said: "Compared to even just a few years ago, we can see the enormous uptake of unsecured debt across all areas.

"This puts literally millions on the borderline. If interest rates rise or unemployment goes up, or if individuals suffer an illness or loss of income, their debts can quickly spiral out of control."

Edited May 3, 2006 by Realistbear

[Xurbia]

It doesn't matter. These 'entrepreneurs' can write-off the debt easy enough and start again. In fact it's got to be the best alternative. Put yourself through university on a credit-card and then go bankrupt. What a nation of clowns we are i.e. the 4 in 5 of us that will bail out these incompetents.

[right_freds_dead]

from my experience of people. anybody with 10k of credit card debt is usually pretty dumb to start with.

[boo]

from my experience of people. anybody with 10k of credit card debt is usually pretty dumb to start with.

So how many people do you know with 10K of credit card debt then?

[desresdude]

So how many people do you know with 10K of credit card debt then?

Read the bottom of the article

"YouGov questioned 1,336 people during March."

great sample size.

[warwickbloke]

It doesn't matter. These 'entrepreneurs' can write-off the debt easy enough and start again. In fact it's got to be the best alternative. Put yourself through university on a credit-card and then go bankrupt. What a nation of clowns we are i.e. the 4 in 5 of us that will bail out these incompetents.

Bankruptcy no longer applies to student loans, a very convenient clause introduced by the government to ensure they do not lose out, just all the other creditors.

This will probably slowdown the uptake of student loans but up the credit card spending.

With a bit of luck this may dissuade all the clowns using university to skive off working to get a useless qualification, & have only genuine scholars attend.

What a simply brilliant governmental ploy.

[Xurbia]

I know a person with over 10k on the credit card. People tend to keep these things quiet until they are serious trouble. If you intend to marry someone soon it's best to sit down and discuss debt. Once you're married it becomes joint debt. If your spouse owns a house don't bet it's got equity in it either.

[billy-g]

I know a person with over 10k on the credit card. People tend to keep these things quiet until they are serious trouble. If you intend to marry someone soon it's best to sit down and discuss debt. Once you're married it becomes joint debt. If your spouse owns a house don't bet it's got equity in it either.

Well said. I know personally 2 blokes who have been totally shafted by their partners this way. Sorry if that sounds sexist, but thats the way it was.

[boo]

I know a person with over 10k on the credit card. People tend to keep these things quiet until they are serious trouble. If you intend to marry someone soon it's best to sit down and discuss debt. Once you're married it becomes joint debt. If your spouse owns a house don't bet it's got equity in it either.

But isnt it all relevant to earnings? If someone earns 80K then 10K doesnt seem so bad, so they wouldnt need to tell anyone about it. I agree about not marrying someone in debt, but how do you truly know how much someone owes? Most couples these days have individual bank accounts.

[Xurbia]

Bankruptcy no longer applies to student loans, a very convenient clause introduced by the government to ensure they do not lose out, just all the other creditors.

This will probably slowdown the uptake of student loans but up the credit card spending.

With a bit of luck this may dissuade all the clowns using university to skive off working to get a useless qualification, & have only genuine scholars attend.

What a simply brilliant governmental ploy.

Thanks for the information. Yes I too think that the less erudite are attending as a 3-year get-out-of-work ploy. Still, enormous debt is hardly an incentive for the capable science student is it? Not sure if I would go to uni know if I hard to pay for it over 30 years!

But isnt it all relevant to earnings? If someone earns 80K then 10K doesnt seem so bad, so they wouldnt need to tell anyone about it. I agree about not marrying someone in debt, but how do you truly know how much someone owes? Most couples these days have individual bank accounts.

It may sound cynical but if I was at all concerned I would undertake a credit check. Love is meant to conquer all but we are talking about money here!!!!!!!!!!!!!!!!! Seriously look for those 'Jimmy Choo' shoes and 365 handbags in the wardrobe. I've known some sly women but men are just as bad too. If they love you they will have to bankrupt themselves before getting married...... I really am a cynic.... I need help!!!

[boo]

Thanks for the information. Yes I too think that the less erudite are attending as a 3-year get-out-of-work ploy. Still, enormous debt is hardly an incentive for the capable science student is it? Not sure if I would go to uni know if I hard to pay for it over 30 years!

It may sound cynical but if I was at all concerned I would undertake a credit check. Love is meant to conquer all but we are talking about money here!!!!!!!!!!!!!!!!! Seriously look for those 'Jimmy Choo' shoes and 365 handbags in the wardrobe. I've known some sly women but men are just as bad too. If they love you they will have to bankrupt themselves before getting married...... I really am a cynic.... I need help!!!

you can never have enough handbags (or shoes)

[Xurbia]

you can never have enough handbags (or shoes)

.... or platinum diamond rings.

[boo]

.... or platinum diamond rings.

a teeny weeny dogs in burberry bags

[warwickbloke]

Thanks for the information. Yes I too think that the less erudite are attending as a 3-year get-out-of-work ploy. Still, enormous debt is hardly an incentive for the capable science student is it? Not sure if I would go to uni know if I hard to pay for it over 30 years!

If you are at 'going to uni' age the main concern is how much beer you can afford over the next three years, all else is immaterial. A thirty year debt sounds OK when you are going to be 'qualified' & earning huge wages.

Anyway, I was only joking about the brilliant governmental ploy, they will find a way to keep everybody at school till they are 25 & make them pay for the privilege because the only real alternative is to give them unemployed status & any course of action is preferable to that.

Does anybody have any figures for the amount of people 'not actually earning anything but are getting benefits & surviving on only that' as opposed to the official 'unemployment' figures.

I'll wager there is a vast difference.

I am curious of this 'cos I have a day off & the wife was watching Jeremy Kyle & there was an 18 year old woman beater who "stayed on the dole 'cos it ain't worth working for £200 a week".

I'm sure he is a one off!

[delboypass]

Bankruptcy no longer applies to student loans, a very convenient clause introduced by the government to ensure they do not lose out, just all the other creditors.

This will probably slowdown the uptake of student loans but up the credit card spending.

With a bit of luck this may dissuade all the clowns using university to skive off working to get a useless qualification, & have only genuine scholars attend.

What a simply brilliant governmental ploy.

this discussion has already been had - take out credit card - pay off student loans - go bankrupt.

this is the work around

[warwickbloke]

this discussion has already been had - take out credit card - pay off student loans - go bankrupt.

this is the work around

Obvious ennit!!

Sorry del, must have missed that discussion, don't mean to dredge up the past.

[AvidFan]

So how many people do you know with 10K of credit card debt then?

What percentage of these people are stoozing? I have LOTS of credit card debt, but I intend to pay it back shortly (just before the 0% rate ends).

Is it really that bad, or are we a nation of reasonably well-informed financially savvy types that are now playing the credit card companies at their own game? I've heard people talk about stoozing on the bus... I reckon it's more common than people realise.

AF.

[warwickbloke]

What percentage of these people are stoozing? I have LOTS of credit card debt, but I intend to pay it back shortly (just before the 0% rate ends).

Is it really that bad, or are we a nation of reasonably well-informed financially savvy types that are now playing the credit card companies at their own game? I've heard people talk about stoozing on the bus... I reckon it's more common than people realise.

AF.

Nice thought, borne out by the record number of bankruptcies, is this financial savvy or dire miscalculation?

I guess there are a lot of well intentioned stoozers who hadn't reckoned on redundancies, high fuel rises, low pay rises, lack of overtime etc.

Time will tell I suppose.

[deus ex machina]

And all that equity in mummy and daddy's house will just soak it up but not until all the naughty banks get to take their 10% first.

Hey, nobody loses and silly little Cedric and fokwit Tracy get to do it all over again, and again, and again.....

Edited May 3, 2006 by deus ex machina