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sam

There Could Be 1 Million Going Bankrupt

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http://business.guardian.co.uk/story/0,,1780123,00.html

Location Location Location is going to be replaced by Debt Debt Debt.

This is the area where i have been looking for a while, DEBT. we might have interest rates going up, inflation rising, unemployment rising, but Debt or rather too much of it will be seen as the trigger once this correction kicks, if borrowing had me more controlled over the last few years then we could have handled a few set backs.

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This is an interesting paragraph

The company had recently seen someone who had run up debts of £327,000 on 64 credit cards. Britons, he said, hold 55% of all the credit cards in Europe. "It is wrong to say the numbers are increasing because bankruptcy laws have been made softer. The reason is, there is much more credit available."

I personally wouldnt mind have the spending power of £350,000

UK holds 55% of all credit cards in Europe...something has to be wrong there. were a small island nation with a small population!

NO THE NEW BANKRUPTCY OPTION IS A SOFT OPTION NOW - 6 MONTHS IS ALL YOU HAVE TO SERVE NOW

Im seriously considering joining them as it looks like the government is going to try and use inflation as a way out.

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Guest Charlie The Tramp

The Official Receiver has the power to slap wrists. At the moment they are rubber stamping them through, but how long now before it comes to the point where they say enough is enough, these people are taking the p**s.

If, during his/her enquiries into your affairs, the Official Receiver decides that you have been

dishonest either before or during the bankruptcy or that you are otherwise to blame for your

position, he/she may apply to the court for a bankruptcy restrictions order. The court may make

an order against you for between 2 and 15 years and this order will mean that you continue to be

subject to the restrictions of bankruptcy which are described in section 8 above. You may give a

bankruptcy restrictions undertaking which will have the same effect as an order, but will mean

that the matter does not go to court.

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Asked what was the one overriding reason for having such high levels of unsecured debt, 23% blamed overspending,

I would blame it on stupidity really.

Maybe these people can have their debts written off by claiming they were too stupid to sign the credit agreement and were, therefore, 'not of sound mind' at the time.

I have got every sympathy for people on low incomes trying to survive (I've been there and know many people who have)....but if you are in debt and you have a mortgage, credit cards, a car and have been taking holidays and buying plasma screen tv's then I would throw the book at them.

I would make every perosn who declares themselves bankrupt or gets one of these IV ? schemes where they have there debt written off take compulsory finance lessons at their own expense before they are ever allowed near money again.

Parents who can't control their kids can be made to take parenting lessons

People who have convictions for certain types of driving offences can be made to resit their driving test

Why can't these people be made to take lessons in how to control their own finance.

Getting into debt and having to write it off doesn't just impact on them - they are a drain on society. Jo public picks up the bill in increased prices/higher borrowing rates etc.

Just like shoplifting and false claims on insurace are not a victimless crime neither is getting into debt and them expecting the rest of society to pick up the bill.

These people should have to gain a certificate in financial competence before they are discharged as bankrupts

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I'm all in favour of bringing back Debtor's prisons. I'm sure these people will think twice about running up huge debts they have no way of paying then.

:)

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Couldn't agree more devslim - in the end its the rest of us who pay off our bills who end up paying for their profligacy! Their debts should never be allowed to be written off through bankruptcy - they should stay with them forever as a lesson to others.

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This is an interesting paragraph

I personally wouldnt mind have the spending power of £350,000

UK holds 55% of all credit cards in Europe...something has to be wrong there. were a small island nation with a small population!

NO THE NEW BANKRUPTCY OPTION IS A SOFT OPTION NOW - 6 MONTHS IS ALL YOU HAVE TO SERVE NOW

Im seriously considering joining them as it looks like the government is going to try and use inflation as a way out.

is it really only 6 months? i was under the impression you would be black listed for a couple of years?

people are so cruddy with money, and so desperate to keep up with the Jones's these days...it's pathetic.

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As above story, but reported on in the Metro...

Front page headline was 1 million people in such bad debt they are considering bankruptcy. Reading the details further it was a press release from some debt management company, 1 in 8 uk people badly off with over 10K debts (as recently reported elsewhere), 1 in 6 of these (or something like that) almost certain of go bankrupt.

The best thing was then to see at the top of the page, giving us all encouragement of course, was a reader competition offering the chance to win 20K for a house deposit. I suppose that is supposed to be a 10% deposit, not that you'd get much for 200K in London.

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Money is cheap and the VIs keep borrowing from Japan and Asia at highly accomodative rates with big mark ups that allow for massive levels of default. Subprime lending is being undertaken by Nationwide and B & B to bolster the market and I suspect the same things applies: if 30% default the other 70% will cover their backsides.

It will end when cheap money ends and that ball is in Asia's court and so far the BoJ are afraid to kill off their "recovery" with higher IR. When inflation hits them they will move and that's when the Miracle Economy based on debt will collapse around us.

http://today.reuters.com/investing/finance...AN-HOSOKAWA.XML

Hosokawa: BOJ must keep zero rates to aid economy

Mon May 22, 2006 4:17 AM ET

TOKYO, May 22 (Reuters) - Vice Finance Minister Koichi Hosokawa said on Monday the Bank of Japan should keep interest rates at zero to support the economy.
"We would like the BOJ to support the economy by keeping interest rates at zero so that the economy overcomes deflation completely and does not fall back into deflation again," Hosokawa told a regular news conference.
Edited by Realistbear

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http://business.guardian.co.uk/story/0,,1780123,00.html

Location Location Location is going to be replaced by Debt Debt Debt.

I posted this on the blog but thought I would add it here too:

Once again it amazes me that this is sudden big news! The government & lenders have watched this situation build up - but all the time that it has been supporting the economy and making lenders huge profits they are happy to slaughter the lambs. Now all of a sudden it is the avarage man in the street who has caused this problem & now he must be re-educated! So relaxed lending regulations, idiotic goverment policy, lenders fighting to give us money (and Carol Vorderman aswell) has had nothing to do with this!!!

This makes me so ANGRY!! :angry:

Rant over - thank you for listening. :blink:

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I'm all in favour of bringing back Debtor's prisons. I'm sure these people will think twice about running up huge debts they have no way of paying then.

:)

This weekend one of my friends put forward the suggestion of starting up a 'modern' workhouse, like they had from the 1700's for the destitute.

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Also in The Guardian today (page 3 or on the net).

Firms face £2.6bn bill for extra staff pension contributions in government white paper
The white paper, which is due to be published this week after months of wrangling and at least eight drafts, suggests that as many as 7 million people are not saving enough for a pension.

All the (sensible) financial advice I've ever seen recommends paying off debt before starting saving. This country's got a long, long way to go before the population saves for its own pensions rather than paying for them in taxes.

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I'm all in favour of bringing back Debtor's prisons. I'm sure these people will think twice about running up huge debts they have no way of paying then.

:)

Mmmmm. I suppose it is stealing, unintentionally. Sounds a bit harsh though.

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As usual, the mainly irresponsible ruin it for the rest of us.

Now I know you will say that all of these people are people who have scrimped every penny and are paying their gas bill on their CC because they have no cash because they are spending everything on their mortgage, but be honest, that's a TINY minority, the vast majority are people who have spent more than they earn on useless stuff (just look at moneysavingexpert.com for examples among the car crashes) and on simply living beyond their means.

They are often the same people who are bleating on about house prices and I guess would be the ones who rely on MEW to finance their lives.

It staggers me how all these people I know are on £25K a year can afford to spend £14K on a car - they finance it and never actually work out what it costs, only how much it costs per month.

I keep a tight reign on household finances - I make sure we DON'T spend more than we earn - why can't other people either realise that they can't really afford it...... and why should they be allowed to get away with walking away from their debts - I think all capital spent ought to be repaid and you can't be a discharged bankrupt till you have paid that back PLUS an amount of interest on that sum... instead we are developing a generation of credit junkies who know they can walk and never learn (GB mode on) fiscal prudence..... - and I suffer for that....

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http://business.timesonline.co.uk/article/...2191620,00.html

Borrowing

Times Online May 22, 2006

One million on brink of insolvency

By Andrew Ellson

A million people in the UK are on the brink of insolvency as the credit boom of the last decade has left borrowers struggling to repay their debts.
Research by YouGov has found that one in five of the adult population -- around 8 million people -- has unsecured debt of more than £10,000. Almost 10 per cent of these borrowers -- or three-quarters of a million people -- have problems repaying their debt every month while a further ten per cent struggle "most months" or "quite frequently".

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I'm all in favour of bringing back Debtor's prisons. I'm sure these people will think twice about running up huge debts they have no way of paying then.

:)

Whilst individuals are responsible so are (IMHO) the lending institutions who

a) lend irresponsibly

B) charge usurious interest rates

and the government for allowing a culture of live now pay later to develop... a prime example being student debt.

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Whilst individuals are responsible so are (IMHO) the lending institutions who

a) lend irresponsibly

B) charge usurious interest rates

and the government for allowing a culture of live now pay later to develop... a prime example being student debt.

Eh, unless you an idiot, your unsecured spending over the last 5 or 6 years has been [re]financed at less than 8% or so. If you have borrowed higher than that, why did you not wonder why...... ?

I also struggle a bit with irresponsibility, people are adults, why should someone else cover their stupidity and protect them from themselves. The duty not to borrow irresponsibly rests with us as consumer, a bank has a duty to make profits, not nanny our gullible, terminally optimistic and foolhardy. People want all the rights without the responsibilities...

I blame the government for making it so easy for people to get away with doing it, you can't blame the government (though I should like to) for letting so many people delude themselves into thinking that three years p1ss up and a Mcdegree is a good idea.

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I'm all in favour of bringing back Debtor's prisons. I'm sure these people will think twice about running up huge debts they have no way of paying then.

:)

So how does debtors prison work?

Do you have to pay for your time inside?

Do you get let out to work?

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http://business.guardian.co.uk/story/0,,1780123,00.html

Location Location Location is going to be replaced by Debt Debt Debt.

I posted this on the blog but thought I would add it here too:

Once again it amazes me that this is sudden big news! The government & lenders have watched this situation build up - but all the time that it has been supporting the economy and making lenders huge profits they are happy to slaughter the lambs. Now all of a sudden it is the avarage man in the street who has caused this problem & now he must be re-educated! So relaxed lending regulations, idiotic goverment policy, lenders fighting to give us money (and Carol Vorderman aswell) has had nothing to do with this!!!

This makes me so ANGRY!!

Rant over - thank you for listening.

There are a lot of vices freely available, debt is just one of these.

Allowing yourself to be seduced by it is still stupidity!!

The only tool to combat stupidity is education.

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Who cares about millions of people struggling to pay their debts? House prices are still going up and that's great news!

Can I have that job at the Daily Express now?

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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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