Jump to content
House Price Crash Forum
Sign in to follow this  
Realistbear

B B C: High Earners Are Debt Ridden Also - 70k Of It

Recommended Posts

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.

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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

Share this post


Link to post
Share on other sites

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

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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.....

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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!

Share this post


Link to post
Share on other sites

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...........................

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

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 .

Share this post


Link to post
Share on other sites

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.

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 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%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.