Realistbear Posted May 22, 2006 Share Posted May 22, 2006 http://news.bbc.co.uk/1/hi/business/5004654.stm Last Updated: Monday, 22 May 2006, 11:33 GMT 12:33 UK High earners in debt firing line The number of high earners struggling to meet their debts is on the increase, according to the Consumer Credit Counselling Service (CCCS). The debt charity said that the number of people earning more than £30,000 a year who are asking it for help has risen by 257% in the past three years . High mortgages , school fees and keeping up with neighbours' spending habits were common reasons for debt build-up. Debt now seemed a "normal part of life" for high earners, the CCCS added. The average debt amongst high earners turning to the CCCS for advice was nearly £70,000. People in the £30,000 plus earnings bracket represented one in 20 of CCCS' clients. HPI and MEW is cutting accross all financial classes it seems. Gordon's dreaded "Miracle Economy" shows no favouritism toward its victims, rich or poor, all will suffer. Quote Link to comment Share on other sites More sharing options...
Ignorant Steve Posted May 22, 2006 Share Posted May 22, 2006 http://news.bbc.co.uk/1/hi/business/5004654.stm Last Updated: Monday, 22 May 2006, 11:33 GMT 12:33 UK High earners in debt firing line The number of high earners struggling to meet their debts is on the increase, according to the Consumer Credit Counselling Service (CCCS). The debt charity said that the number of people earning more than £30,000 a year who are asking it for help has risen by 257% in the past three years . High mortgages , school fees and keeping up with neighbours' spending habits were common reasons for debt build-up. Debt now seemed a "normal part of life" for high earners, the CCCS added. The average debt amongst high earners turning to the CCCS for advice was nearly £70,000. People in the £30,000 plus earnings bracket represented one in 20 of CCCS' clients. HPI and MEW is cutting accross all financial classes it seems. Gordon's dreaded "Miracle Economy" shows no favouritism toward its victims, rich or poor, all will suffer. If someone earning £30,000 thinks they are a high earner then they are an idiot. If they spend as if they are a high earner then it's no surprise they get into debt. Quote Link to comment Share on other sites More sharing options...
munimula Posted May 22, 2006 Share Posted May 22, 2006 If someone earning £30,000 thinks they are a high earner then they are an idiot. If they spend as if they are a high earner then it's no surprise they get into debt. It depends where they live. You live in London, so yes I would agree that £30K there doesn't really mean that you are a high earner. But in many parts of the country anyone earning £30k+ is easily a 'high earner' There are other places than London Steve, something you might do well to remember before you generalise as you do in most of your posts Quote Link to comment Share on other sites More sharing options...
Cornwall Sceptic Posted May 22, 2006 Share Posted May 22, 2006 I was working up in the West Midlands last week and went to see a friend who lives in Warwick - on the big estate where all the road names are Shakesperian His next door neigbour is having an extension built on his house (normal 4 bed detached) on top of that he has just bought an Aston Martin!! He may have been left some money or possibly won the lottery - although I suspect he's Mewed CS Quote Link to comment Share on other sites More sharing options...
Loanshark Posted May 22, 2006 Share Posted May 22, 2006 'The average debt amongst high earners turning to the CCCS for advice was nearly £70,000. ' Does that include their mortgage ? Quote Link to comment Share on other sites More sharing options...
whiterabbit Posted May 22, 2006 Share Posted May 22, 2006 30k a year is not a high earner in any part of the UK anymore if you want to buy a house etc. In the SE 70K isn't even a lot as a family income anymore. I would say over about a 100k family income is the level you start to feel comfortable or maybe even more depending on your mortgage and transportation cost. Quote Link to comment Share on other sites More sharing options...
Rachman Posted May 22, 2006 Share Posted May 22, 2006 Careful, they'll be trying to burn you for suggesting stuff like that. Which is odd given that over 10% of them said their income was more than £100K in the poll..... (IIRC). To buy in the current market or to have a young family and/or school fees to pay, my guesstimate at combined income would probably be about £6K a month to be comfortable - or about £100K between 2 people. By comfortable I mean £1500 mortgage, £2K school fees, £2K to live on (for an entire family, cars, food, clothing, bills, holidays, and not less than £500 a month to save... - the big cost in there is obviously school fees, but subject to odd exceptions, I don't think I should be going state education after primary school for my kids..... Quote Link to comment Share on other sites More sharing options...
whiterabbit Posted May 22, 2006 Share Posted May 22, 2006 Careful, they'll be trying to burn you for suggesting stuff like that. Which is odd given that over 10% of them said their income was more than £100K in the poll..... (IIRC). To buy in the current market or to have a young family and/or school fees to pay, my guesstimate at combined income would probably be about £6K a month to be comfortable - or about £100K between 2 people. By comfortable I mean £1500 mortgage, £2K school fees, £2K to live on (for an entire family, cars, food, clothing, bills, holidays, and not less than £500 a month to save... - the big cost in there is obviously school fees, but subject to odd exceptions, I don't think I should be going state education after primary school for my kids..... 100k is borderline if its 2 people with kids who are also commuting into London and I don't think someone on "only this" can afford private school aswell. I mean we were paying 800 a month just on the crap train and parking alone which means at the top tax rate you have to earn 15k a year just to get to work and I know lots of people paying more than this. Childcare runs 900 a month per kid so with just those 2 items a working family has to earn 40k a year pretax before we even factor in a mortgage, utilities, clothes, food etc. A car and vacations go on top of course. Quote Link to comment Share on other sites More sharing options...
Rachman Posted May 22, 2006 Share Posted May 22, 2006 Childcare runs 900 a month per kid so with just those 2 items a working family has to earn 40k a year pretax before we even factor in a mortgage, utilities, clothes, food etc. A car and vacations go on top of course.Jesus, I did not know it was that much.....I am making my dirty money now and we will be off back north like salmon when it comes to that time. Grandparents don't cost that much..... Our travel costs to work are about £4.5K a year (plus parking if it's chucking it down during the drought), I thought that was bad. Quote Link to comment Share on other sites More sharing options...
29929BlackTuesday Posted May 22, 2006 Share Posted May 22, 2006 100k is borderline if its 2 people with kids who are also commuting into London and I don't think someone on "only this" can afford private school aswell. I mean we were paying 800 a month just on the crap train and parking alone which means at the top tax rate you have to earn 15k a year just to get to work and I know lots of people paying more than this. Childcare runs 900 a month per kid so with just those 2 items a working family has to earn 40k a year pretax before we even factor in a mortgage, utilities, clothes, food etc. A car and vacations go on top of course. White Rabbit was the codename for WingCo Yeo-Thomas (and title of his book about wartime resitance) - the man pictured in my avatar. Not actually related to this thread. On - topic, I would say that 30k is NO WAY 'high-earning'!! Come off it! Quote Link to comment Share on other sites More sharing options...
whiterabbit Posted May 22, 2006 Share Posted May 22, 2006 Jesus, I did not know it was that much..... I am making my dirty money now and we will be off back north like salmon when it comes to that time. Grandparents don't cost that much..... Our travel costs to work are about £4.5K a year (plus parking if it's chucking it down during the drought), I thought that was bad. Yes neither did we until we tried to get it. On top of the cost most charge 20 pounds every 15 minutes after they close at 6.30 if you are late which puts a tremendous pressure on you leaving work early and getting the train. The cheapest childcare we found was 800 a month and most of them have long waiting lists and also want to interview the parents to make sure they fit it. I don't know how any family in the SE on a 100k with young children paying childcare can save anything........................... Quote Link to comment Share on other sites More sharing options...
BufferBear Bitcoin Bull Posted May 22, 2006 Share Posted May 22, 2006 The cheapest childcare we found was 800 a month and most of them have long waiting lists and also want to interview the parents to make sure they fit it. I don't know how any family in the SE on a 100k with young children paying childcare can save anything........................... We have 2 young children in nursery find it very difficult to save, but save we do and don't earn anywhere near 100k p.a. Thankfully, one starts school in September. We have made serious sacrifices to be able to 'afford' to have 2 children close in age (2 yr gap). I think the government have got it so wrong that many people I know have had to wait for a gap of 4 years before having their second child as they cannot afford nursery fees x 2 and a mortgage. We chose no mortgage and 2 children . No regrets. Quote Link to comment Share on other sites More sharing options...
Bingley Bloke Posted May 22, 2006 Share Posted May 22, 2006 30k a year is not a high earner in any part of the UK anymore if you want to buy a house etc. I agree. If the price of people's time had inflated as fast as that of houses, gas, electricity, water, council tax, petrol, etc. the average joe would be on more than £50K. Still, on £17K my heart hardly bleeds for people on £30K+ who are coming unstuck. I've managed to keep myself out of bother so they have no excuse not to. Quote Link to comment Share on other sites More sharing options...
Ignorant Steve Posted May 23, 2006 Share Posted May 23, 2006 It depends where they live. You live in London, so yes I would agree that £30K there doesn't really mean that you are a high earner. But in many parts of the country anyone earning £30k+ is easily a 'high earner' There are other places than London Steve, something you might do well to remember before you generalise as you do in most of your posts So given the remaining posts on this thread I think we can safely conclude that £30K is not a high earning salary. BTW I don't live in London or the South East. Quote Link to comment Share on other sites More sharing options...
zag2me Posted May 23, 2006 Share Posted May 23, 2006 30k was a high earner 10 years ago, but its pretty average today to be honest. Quote Link to comment Share on other sites More sharing options...
Dead Spider Posted May 23, 2006 Share Posted May 23, 2006 30k was a high earner 10 years ago, but its pretty average today to be honest. Read the article . Helen Saxon, author of the CCCS report, said earning a high income did not necessarily mean avoiding going into the red. "Accepted wisdom suggests that a take-home income of £30,000 per year is enough to allow most families to be able to manage the demands on their income," Ms Saxon said." TAKE HOME INCOME not gross . Quote Link to comment Share on other sites More sharing options...
Ignorant Steve Posted May 23, 2006 Share Posted May 23, 2006 Read the article . Helen Saxon, author of the CCCS report, said earning a high income did not necessarily mean avoiding going into the red. "Accepted wisdom suggests that a take-home income of £30,000 per year is enough to allow most families to be able to manage the demands on their income," Ms Saxon said." TAKE HOME INCOME not gross . Ah now you've broken one important rule of this site. You've read the article properly. You should never do this as it means any unsubstatiated wild claims can be immediately ruled out as the ravings of a madman. I have to say a take home of £30,000 per year should be sufficient. However the posts above show how difficult life can be living and commuting in the SE with kids. A very good example of how house prices will distort social fabric in years to come. To buy a family home in SE you need 2 salaries but then have to spend most if not all disposable income on basic living. No wonder some gradually slide into debt. We used to live in Hammersmith, flat above probably worth about £600K (3 beds). They had 2 kids at private school etc. Their bathroom flooded so we asked for a cheque fro £150 to cover redecoration costs. Woman dissolved into tears as they couldn't afford it "this month". I agreed to charge them £200 the following month to help them out. Quote Link to comment Share on other sites More sharing options...
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