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Realistbear

People More Than 100k In Debt Has Doubled In The U K

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http://news.bbc.co.uk/1/hi/business/5104716.stm

'Extreme debt' levels get worse

Levels of 'extreme debt' in the UK are worsening, says a charity which has seen the number of its clients owing more than £100,000 nearly double.
The Consumer Credit Counselling Service saw the number of clients in extreme debt rise from 1.4% to 2.7% in a year.
Statistics for its 280,000 customers for 2005 showed
people aged between 40 and 59 had the highest level of debt
- owing an average of £34,456.

With house prices so high people do have to borrow more. For those who already own its too easy to sell the home back to the banks through endless MEW. Its what the Miracle Economy is all about folks. :lol:

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I'm assuming this includes mortgage debt? In which case is it that bad? MEWing 100K is a bit mad, but a mortgage for 100K wasn't all that unusual when house prices were sane 10 years ago. I think they need to qualify what they mean by "extreme debt". I would consider 100k on credit cards extreme, but not to buy a house. It would be a big mortgage, but not extreme.

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I'm assuming this includes mortgage debt? In which case is it that bad? MEWing 100K is a bit mad, but a mortgage for 100K wasn't all that unusual when house prices were sane 10 years ago. I think they need to qualify what they mean by "extreme debt". I would consider 100k on credit cards extreme, but not to buy a house. It would be a big mortgage, but not extreme.

I think it may just relate to any debt which cannot be repaid. Hence the need for counseling. In other words, the borrow and spend culture fostered by the Miracle Economy is destroying more and more lives.

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I think it may just relate to any debt which cannot be repaid. Hence the need for counseling. In other words, the borrow and spend culture fostered by the Miracle Economy is destroying more and more lives.

It does make one wonder how some people manage to survive. I really doesn't take a genius to figure out it's not a good idea to take on more than you can afford to pay back. Perhaps it's just a lack of education. Lenders should put up big signs in plain English - "You do realise you will have to pay this back with interest, don't you? :blink: " and "No, it won't be alright on the night!". Or make it really simple - "If you fail to pay us back, we'll take your BMW off you, and you won't be able to pull anymore, innit"

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It does make one wonder how some people manage to survive. I really doesn't take a genius to figure out it's not a good idea to take on more than you can afford to pay back. Perhaps it's just a lack of education. Lenders should put up big signs in plain English - "You do realise you will have to pay this back with interest, don't you? :blink: " and "No, it won't be alright on the night!". Or make it really simple - "If you fail to pay us back, we'll take your BMW off you, and you won't be able to pull anymore, innit"

:lol:

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I'm assuming this includes mortgage debt? In which case is it that bad? MEWing 100K is a bit mad, but a mortgage for 100K wasn't all that unusual when house prices were sane 10 years ago. I think they need to qualify what they mean by "extreme debt". I would consider 100k on credit cards extreme, but not to buy a house. It would be a big mortgage, but not extreme.

I guess it depends if you are including pensions. Between 40 and 59 you should be making big surpluses to pay into pension funds/savings, not replaying debt.

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I've said many a time that lenders should be also be held responsible for letting people borrow money when they are clearly already in enough debt. Loans to consolidate are a good idea mainly because they will do their utmost to help someone pay off their debts at a far lower interest rate.

If you are linking the doubling of £100k debts to house prices, don't forget their are now far more (asset) millionaires because of it too.

I find it difficult to understand how people with the highest level of debt are aged from 40 to 59. Surely these debts are including mortgages :huh:

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I think it may just relate to any debt which cannot be repaid. Hence the need for counseling. In other words, the borrow and spend culture fostered by the Miracle Economy is destroying more and more lives.

Also - although there is secured debt, there are many, many people who build up huge amounts on their credit cards, you frquently hear of people with 50/60k on their credit cards. You only need to look on the debt website forum (i forget what it's called), to see people with 4/5k on several credit cards.

I do think people should take responsibility with what they borrow, when the banks say things like "that money is to do with what you like", "oh, it's flashing on my screen - you've been selected to have a credit card with x amount on", i don't think it's on.

Lenders should put up big signs in plain English - "You do realise you will have to pay this back with interest, don't you? " and "No, it won't be alright on the night!". Or make it really simple - "If you fail to pay us back, we'll take your BMW off you, and you won't be able to pull anymore, innit"

Tentpeg - you're absolutely right - the banks have no comeback then, a bit like warnings on cigarette packets, they're telling them how it is. Even if it doesn't stop people, at least they can't say they didn't know.

Edited by Bubble Pop Electric

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I told a colleague to take the second of two jobs on offer - not the one with the credit card company who encourage people into more debt who then may kill themselves. Her cringing was palpable as she said I know, I know.. Sad story this morning on ITV about just this occurence, about a guy who killed himself because of mounting , normal household bills, not wild spending. :( :angry:

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I told a colleague to take the second of two jobs on offer - not the one with the credit card company who encourage people into more debt who then may kill themselves. Her cringing was palpable as she said I know, I know.. Sad story this morning on ITV about just this occurence, about a guy who killed himself because of mounting , normal household bills, not wild spending. :( :angry:

Thats as maybe, but according to moneyweek

Bankrupts – and remember at present, personal bankruptcies in the UK are at record levels – are victims not of life-changing events such as divorce, surprise tax bills or business failure, but instead of having taken on too much credit. They spent too much money on things they mostly didn’t need with money too easily borrowed.

A recent survey found that 83% cited excess expenditure over income as the reason for financial failure. In other words, they did it to themselves – amazing!

http://www.moneyweek.com/file/14282/how-th...t-property.html

This suggests that while there maybe a number of people who are genuinely in debt through no fault of their own, the majority are not. But they go bankrupt. Perhaps the one's that end up very depressed about it (and therefore more likely to kill themselves) are less likely to go bankrupt because of the stigma and shame - they are propbably otherwise very proud individuals.

tc

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I don't doubt that at all, there's nothing more substantial to wish for for many people seduced by todays society than the latest tat and shiny technology or popularity purchased through alcohol and socialising, hence brainless taking on of debt with no thought of any consequence.

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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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