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cupidstunt

Uk Personal Debt

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Most of the first few paragraphs have been in the media recently. But continue reading - it's absoloutly awesome!

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

Most of the first few paragraphs have been in the media recently. But continue reading - it's absoloutly awesome!

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

Just a few quotes from the article.

14 million adults (35%) are relying on their overdrafts to get by each month; 3.5m are permanently overdrawn, while two million workers start the month in their overdraft, even after they have been paid.
The cost of owning and running a house rose by 7% in the financial year 2004/05, more than three times the rate of CPI inflation, according to research by Halifax. Total annual housing costs increased to £6,366 in 2004/05. For the average UK homeowner, housing expenses take up 17.5% of their disposable income
Around 15 per cent of 18 to 24- year-olds think an individual savings account (ISA) is an iPod accessory, and one in 10 reckon it's an energy drink. With rising personal debt levels in Britain, and a lack of long-term savings, better money management seems a pressing issue.

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Its little wonder with a government that has been setting such an appalling example. Buy what you cannot afford because everyone is doing it. Forget about debt because in a miracle economy you need never pay it back. If you buy a house you will have your own bank that prints its own money in the form of MEW. Interest rates never go up and house prices never go down so debt is just a state of mind and has no basis in reality.

And here we are today. :blink:

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Dear All

The figures quoted in the first post I can well believe.

I am now 27, I have been to uni and now consider myself to be educated (mostly from my life experiences over the last 5 years - not from paying for my education - but it has help me become educated more rapidly!). However, it has only been this year that I have finally got completely debt free (weel £100 or £200 a month over draft before pay day, but am currently saving avg £600 a month, often £1000).

That because for the last 9 years of my adult life I have been in debt, and for the most part it just felt normal.

It wasn't until I spend some forced time abroad, and saved rather well, paying back £5k in 6 months that I thought life could be better with no debts.

Of all my friends I am the only one with no debt. That sometimes p*sses me off, as I don't own my own house, a new car (mine is 10 in July), but it does give me my security. I can do what I want when I want, currently starting to think OZ could give me a better future. Out of all my friend I am the only one that could do it I I chose to, apart from one that inheritaed 250K.

So what the point of this rant.

IF YOU HAVE ONLY EVER EXPERIENCED DEBT, AND LETS FACE IT FEW HAVEN'T, IT JUST FEELS NORMAL!

In my case I was saved by a sudden shock to the system - IRAQ. Most don't ever get that in their lives until its too late to escape - i.e. kids!

Be good

JJ

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this ones a gem..

""The average person has just £27 a week left to live on after meeting all their bills and essential outgoings, a survey has showed. Recent rises in council tax and utility bills, combined with high levels of debt, have left the average Briton with £954 worth of monthly commitments to pay from an average income of £1,070, according to Combined Insurance.""

but i thought the average uk wage was £72k !!! B)

that makes it easy to afford the uk average house price of (cough) £164k

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this ones a gem..

""The average person has just £27 a week left to live on after meeting all their bills and essential outgoings, a survey has showed. Recent rises in council tax and utility bills, combined with high levels of debt, have left the average Briton with £954 worth of monthly commitments to pay from an average income of £1,070, according to Combined Insurance.""

"The average loan approval for house purchases in April increased to £ £140,400, some 9% higher than a year earlier." (25bp rise = £6.75 per week)

"The average house price in the UK in March 2006 for first time buyers now stands at £145,214" (25bp rise = £6.98 per week)

So an interest rate rise to 4.75% would push alot of people nearer the edge!

Edit: for my crap calculations

Edited by Jason

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this is why i have faith in a big property crash.

people are RIGHT on the financial edge.

none of this make believe average huge wage bullcrap or this cpi of 2%.

thats utter nonsense. the figures quoted here match what i really see on the street level.

and dont think btl will save the day for the market, as during this nightmare, banks wont be that keen on lending massive self cert btl mortgages on a dying asset. + i doubt anyone would want to.

i hope it wont drag the rest of the economy with it, but when you see the graph for the doubling of personal lending within the last 5 years you can suddenly see where the money for the high street has come from. in leyland, lancashire - where i frequent. they used to have huge industry employing people and sold buses all over the rest of the world. today there is a new morrisons and a new tesco on all the former sites. all industry closed. ROF - CLOSED. leyland motors - CLOSED. BTR works - CLOSED. Prestec - CLOSED. Lucas - CLOSED. GEC - gone. BAe - gone.

where people now work to earn this spending power - me and my dad simply cant work it out.

-and btw. my dad was heavyweight champoin of the world. and his dad (my grandad) was the heavyweight champoin of the previous world.

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I'm one of the permenantly withdrawn ones. Although it's interest free, so I just make sure I have enough in the current account to not go over my interest free limit for the next few days and put the rest in the savings account, might as well earn some interest on there money whilst I can.

Edited by squeek

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Guest Bart of Darkness
IF YOU HAVE ONLY EVER EXPERIENCED DEBT, AND LETS FACE IT FEW HAVEN'T, IT JUST FEELS NORMAL!

What's debt?

I must be out of step with the times as I've never had a bank load or a credit card. Never been overdrawn or been called in to see the bank manager for a "friendly chat" about my finances.

I do however enjoy a worry free night's sleep.

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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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