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Britons Are Mortgaged To The Hilt

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do you Get the feeling that sentiment has changed?

Spiralling levels of debt threaten to ruin tens of thousands of families, shocking figures have revealed.

Repossessions, mortgage arrears and bankruptcies have all rocketed over the last year.

The number who risk losing their home has returned to levels not seen since the dark days of the early 1990s.


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Even the Guardian has sensational headlines saying that the problem is so bad it is literally "out of control"


Problem of personal debt spiralling out of control, say insolvency experts

· Record number of people throw in repayment towel

· Official figures said to be tip of the iceberg

Larry Elliott, economics editor
Saturday August 5, 2006
The Guardian
Insolvency experts warned last night that the problem of personal indebtedness was "spiralling out of control" after official figures showed record numbers of borrowers are losing the battle to keep up their payments on loans, overdrafts and credit cards.
Amid concern that Thursday's increase in interest rates from the Bank of England will be the final straw for many struggling to keep up their payments, the government said a record 26,021 people gave up the fight and became insolvent in the second quarter of this year.
The 66% rise over the past year left insolvencies on course to break through the 100,000 barrier for the first time this year. But there are concerns that the official data only scratches the surface of a nation with debts in excess of £1 trillion.

Its worth repeating the bottom line again:

But there are concerns that the official data only scratches the surface of a nation with debts in excess of £1 trillion

Gordon mate, what HAVE you done? :o

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Yes, tip of the iceberg. I know several people who are sailing close to the wind.

I also know other people who are not close to being in trouble, but are simply living a much lower quality of life than their earnings would suggest due to a massively excessive mortgage. Only needs a period of illness or unemployment and their buffer would be wiped out.

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i just can't believe that people have taken on so much debt so lightly, personally debt scares the bejesus out of me which is why i've tried not to take on much debt throughout my life (biggest was my student loan which was around the £5k mark).

I had to try and persuade and 18year old girl that i work with not to take out a £3k loan to buy her first car recently, i was like 'it's your first car, your insurance is already going to be extortionate and you'll probably bash it about a bit anyway' but her thoughts were that she wanted a pretty modern car.

Nobody is prepared to start at the bottom these days...sigh

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"she wanted a pretty modern car"

EXAMPLE of the over-reaching expectations that are spoiling our society

She should buy a bicycle

Our first car was a 106, was ok for a year. The second car we got was a new Corsa 1.2, first bought on finance and then I changed it for a graduate loan. After moving house for about the 4th time in 3 years and I me getting another job I then required the car (a 30 minute car journey that takes a bus, 2 trains then probably a 2/3 mile walk, which must take almost 2 hours). My girlfriend is a nurse and it was more desirable and lot easier for her to get a second car, an old banger would have been great but with no money in the bank we went for a hire / purchase option. If she does two extra shifts at work she makes up the cost of the car per month.

Now, I admit buying a new car seems like a waste of money. I don't regret it though, for either cars. We use my car for travelling around (holidays etc) and my girlfriends car is only used for getting her to work. In hindsight both are pretty crap choices but we can afford the debt and these are the only debts we have ignoring our student loans.

I would love to ride to work, can't see myself riding down the motorway though..

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I live in an urban area. I can work to work. I chose to live where I do to avoid a car. Actually, I haven't driven for so many years, I'd probably want someone to give me a couple of hours refresher.

Funnily enough, many of the people I work with could also walk, cycle, or bus a short distance but they all have cars and many use them to get to work. Most week's you hear someone moaning about their latest £500 repair bill, how someone went into the back of them, how their 17 year old son just wrote of the car they bought him for his birthday, how they were stuck in traffic for 30 minutes to go 20 minute walk down the road.

I freaking hate cars.

Edited by CrashedOutAndBurned

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