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20% Of Population With Debt At 10k Are Considering Bankruptcy

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http://news.bbc.co.uk/1/hi/business/5238952.stm

Last Updated: Wednesday, 2 August 2006, 23:08 GMT 00:08 UK

One in five 'consider insolvency'

One in five people with more than £10,000 in unsecured personal debt, such as loans and credit cards, are considering going insolvent.
The same survey, conducted in March by debt consultancy Thomas Charles, found that one in seven people were considering insolvency.
The level of personal insolvencies has been rising over the past two years.

Say no more.

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It's been said before that IVAs are far too easy nowadays and that there isn't the stigma attached to bankruptcy these days that there used to be ... and I have to agree! There HAS to be some sort of comeback on these people in the long term!?! If the banks are just going to write-off huge amounts of debts just like that, what's to stop people just doing the same thing again and again? It makes me think I should have just borrowed a shed load of money myself ... but I don't believe in living outside your means!

Still, on the plus side, it's all good news for my debt shares! :ph34r: One company I've invested in said yesterday that they're moving to new premises next month to accomodate business of around 500 IVAs each month! That's almost 6000 each year! :o They only did about 1200 in the last 12 months, so that's five times as many! :o

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The issue is the entire inequality of it all - these people have spent - and I don't believe they spent it putting a roof over their heads - our money and are getting away with not paying it back.

You just have to read some of the stuff on moneysavingexpert - a few deserving hard luck stories but mostly a lot of people who spent big with no consequence for the future - and they mostly to a greater or lesser extent get away with it by not paying it back - then all moan about the big nasty evil banks doing something as horrible as actually wanting their money back and their contracts enforced. Drives me mad.

If you go bust, you lose everything - make it easy to do, but the effect catastrophic - you may stop a lot of these people...

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that's a big increase.

If the stigma of bankruptcy fades, many more will chose this option.

The banks deserve what they get. But teh UK needs a new "Good" Bank, that the good credit risks can flock to, as the Old banks sink with their bad debts.

Maybe the Swiss will come here?

Check Out : The UK's Balance Sheet

I think you are spot on about the banks, as they try and gouge profits by charging for current accounts, raising interest rates on borrowing and reducing rates on savings to offset their highly leverage rubbish that they are STILL ouring out then the first new entry into the market has a good chance of cleaning up. Could be Indian, could be Chinese even.

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that's a big increase.

If the stigma of bankruptcy fades, many more will chose this option.

The banks deserve what they get. But teh UK needs a new "Good" Bank, that the good credit risks can flock to, as the Old banks sink with their bad debts.

Maybe the Swiss will come here?

Good banks.....

Banks make money out of risk - the question is where they pitch it - plus most of their lending is not retail - it's loan syndication, mezzanine investing, lending to private equity shops, business, hedge funds and the like - not good little people on the high street who pay their bills on time who they make little money out of. If you did that, you would not last long as an independent bank.

i think the banks will be happy to take on these bad debts - OK, so they lose a lot, but the smoke and mirrors taken away will show just how much extra they have made out of this sort of lending - they will have done the sums and they don't often get it wrong (ahem Barings, BCCI)....

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Good banks.....

Banks make money out of risk - the question is where they pitch it - plus most of their lending is not retail - it's loan syndication, mezzanine investing, lending to private equity shops, business, hedge funds and the like - not good little people on the high street who pay their bills on time who they make little money out of. If you did that, you would not last long as an independent bank.

i think the banks will be happy to take on these bad debts - OK, so they lose a lot, but the smoke and mirrors taken away will show just how much extra they have made out of this sort of lending - they will have done the sums and they don't often get it wrong (ahem Barings, BCCI)....

When you have finance layered the way it is at the moment the risk is shoved around like a game of pass the parcel, for a while it allows far higher risk ro be absorbed by the system and gives many more opportunities for the risk to concentrate at different points and for the actual risk level to be disguised - do the eventual owners of securitised debt have any idea about the real detail of what is going on at the broker level where a lot of the debt sales are originally made? I doubt it. When one or two catch a cold this layered finance can fall apart and the real level of risk taken on by participants quickly revealed. Same goes for hedge funds in the bonds/stock market and leveraged buyout business - more gearing, more leverage = higher risk, too many people creaming off the fee income whilst the going is good to worry about what happens at the pinch point.

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Same goes for hedge funds in the bonds/stock market and leveraged buyout business - more gearing, more leverage = higher risk, too many people creaming off the fee income whilst the going is good to worry about what happens at the pinch point.

The last big deal I did had two primary lenders who then syndicated out to 146 other banks. Hedge funds have actually performed quite poorly over the last 18 months on the whole. LBOs are booming, but only because the cheap credit is still there and the banks have to lend it to get their bankers' bonuses - excessive multiples and borrower friendly terms - plus easy refinancing at the moment to take out poor terms - securitisation usually takes a couple of years to get costs down in the target and produce increased (sustainable !) revenue streams to justify the securitisation.

[although a number of banks have securitised part of their retail portfolios - only small bits but has improved the cash collateral so they can lend more....]

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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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