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30% Yo Y Increase In Those With Serious Debt Problems

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http://uk.news.yahoo.com/rtrs/20070801/tuk...bt-fa6b408.html

Eight million adults in serious debt
By Jennifer Hill Reuters - Thursday, August 2 12:16 amLONDON (Reuters) - More than eight million British adults are in serious debt, an increase of 30 percent in the past year, largely due to rising interest rates, according to research published on Thursday.
Some 8.2 million people, equivalent to 18 percent of the adult population, have 10,000 pounds or more of unsecured debt -- such as credit cards, overdrafts, loans and store cards -- according to a quarterly survey by debt consultancy Thomas Charles.
The number of people struggling to meet debt repayments has also increased....../
"A record rise in house prices -- especially in London and the south-east -- has led to a growing discrepancy between mortgage payments and salaries.
"The high pressure to maintain social and commercial status, particularly experienced by women, often goes hand in hand with high expenditure on the high street.
"Borrowers affected by the higher interest rates now are storing up debt problems for the future; instead of making cuts in their personal expenditure, they are taking on further unsecured loans and credit cards."
The Department of Trade and Industry is due to report personal insolvency figures for the second quarter of 2007 on Friday.

They should consider themselves very fortunate indeed that they live in Gordon's miracle economy where debt is just illusion. Have a problem? Just take out another home equity loan or accept that offer for another credit card. What could be easier for your peace of mind as your financial troubles melt away.

Edited by Realistbear

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So what this article is saying basically is instead of doing what they should and cutting back they do the exact opposite... all simply because their ego's are so inflated and they have to let everyone they know see how much better than them they are.

This is nothing new. I knew of a couple who were at least 15 payments down on their mortgage and not surprisingly facing repossession from their mortgage lender. These people had the outwards appearance of luxury, kids in private school etc.

Anyway before going through repossession mortgage providers have a due care to provide borrowers with as much support as possible and use repossession as a last option. The company I worked for at the time sent an arrears councillor out to see them, and said look you need to cut your monthly outgoings and pay your mortgage or you will loose your house.

He said the first thing that had to go was £5000 a term private schooling, as this would be money seriously better spent saving the house. He was told in no uncertain terms that this would not happen and the kids were to remain where they were.

People like this deserve to loose the house and everything in it.

Rant over…… sorry for such a start to the day think I must be tired from staying up late to watch the excellent program on the collapse on Enron on More Four last night.

Did anyone else see it? And if so did anyone get the impression that the CDO/CDS/Mortgage market is looking like a larger scale version of Enron. Note that all the usual suspects were involved. [The large investment banks Merrill, Bear Sterns etc]

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Enron is a pinpick in comparison, sure there were many other dubious deals, the investment banks will sell anything as anything if they can get away with it, but this situation is far far larger, everything has been affected to some degree or other.

See the "Headwaters" article I linked to - apparently AAA mortgage debt has been sold with as much as 45% of the content of the bond actually being sub-prime - gadzooks!

As for the banks and their councillors - this is the softly, quietly approach to covering up the problems they in many cases they themselves have fostered in or to skim off maximum profits from lending. No doubt they will say - strip out all other non-necessary spending and keep paying our mortgage, well people wouldn;t be in this situation if they weren't able to brrow so much in the first place and the lenders have been pressing the greed buton themselves all the way through this charade - they knew the risks right from the outset and it takes two to tango.

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maintain social and commercial status, particularly experienced by women

It would be interesting to know what proportion of households, rather than just individuals, I guesstimate 3-4 million maybe. This is before the fixed rate mortgages stop too...

I've quoted that bit above as I've noticed the majority of the MSE mob tend to be female...

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One day somebody with real clout is going to start asking some serious questions of the the govt/BOE and the way in which they are running the economy.

It will probably happen when it is in the gutter, the medical bills and knock-on problems alone could possibly wipe out all the financial advantages their current one-track economic management is affording the UK, some would say the end result of their current economic management will be entirely negative once it all pans out.

http://icwales.icnetwork.co.uk/0100news/02...-name_page.html

Debt piled on stressful jobs hits new workers

Aug 2 2007

Western Mail

THE stark reality of stress in the workplace is today laid bare, as tens of thousands of people in Wales are exposed to unhealthy levels of pressure.

Experts are becoming increasingly concerned about the toll our long-hours culture, coupled with massive levels of debt, is having on the Welsh workforce.

Research has revealed that high-pressure jobs can double the risk of depression and anxiety in those just starting to climb the career ladder.

And one in five people have debts of more than £10,000, while a quarter can barely afford to meet their monthly minimum repayments.

Dr Richard Lewis, Welsh secretary of the British Medical Association, said, “Inevitably, a combination of increased stress in the workplace and private lives, with the accumulation of debt and worry about debt, will lead to increased anxiety and mental health-related illnesses.”

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Some 8.2 million people, equivalent to 18 percent of the adult population, have 10,000 pounds or more of unsecured debt -- such as credit cards, overdrafts, loans and store cards -- according to a quarterly survey by debt consultancy Thomas Charles.

This is why buying property in 2007 is a complete waste of time.

The banks sell you a mortgage that you obviously can't afford to pay and then they loan you the money to buy food and to live once you start paying

the mortgage.

The bank gets 100% of your salary, you end up a slave to them - FOREVER. :blink:

The banks gets it all in the end - and they know it.

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Enron is a pinpick in comparison, sure there were many other dubious deals, the investment banks will sell anything as anything if they can get away with it, but this situation is far far larger, everything has been affected to some degree or other.

See the "Headwaters" article I linked to - apparently AAA mortgage debt has been sold with as much as 45% of the content of the bond actually being sub-prime - gadzooks!

As for the banks and their councillors - this is the softly, quietly approach to covering up the problems they in many cases they themselves have fostered in or to skim off maximum profits from lending. No doubt they will say - strip out all other non-necessary spending and keep paying our mortgage, well people wouldn;t be in this situation if they weren't able to brrow so much in the first place and the lenders have been pressing the greed buton themselves all the way through this charade - they knew the risks right from the outset and it takes two to tango.

'Pressing the greed button' - brilliant.

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One day somebody with real clout is going to start asking some serious questions of the the govt/BOE and the way in which they are running the economy.

It will probably happen when it is in the gutter, the medical bills and knock-on problems alone could possibly wipe out all the financial advantages their current one-track economic management is affording the UK, some would say the end result of their current economic management will be entirely negative once it all pans out.

It's not surprising that people are stressed! The standard of living is being eroded before their very eyes. It's astonishing that only 8 million people have financial difficultly but there must be one hell of a lot more worrying about their jobs at the moment. Where exactly are the real jobs? With the 'insourced' Polish, the outsourcing to Bangalore and the unproductive strain of the huge public sector there's little cheer. The most frightening thought is that we haven't even touched on high interest rates yet. This is just a tap on the chin. The roundhouse is on the way!

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It's not surprising that people are stressed! The standard of living is being eroded before their very eyes. It's astonishing that only 8 million people have financial difficultly but there must be one hell of a lot more worrying about their jobs at the moment. Where exactly are the real jobs? With the 'insourced' Polish, the outsourcing to Bangalore and the unproductive strain of the huge public sector there's little cheer. The most frightening thought is that we haven't even touched on high interest rates yet. This is just a tap on the chin. The roundhouse is on the way!

Gordon has pulled off what his predeccessor Dennis "Pips Squeak" Healey could only dream off. He has increased taxes dramatically through stealth and done so without the sheeple noticing as they are too busy talking about how much their house is "worth." Thus, people have never been worse off in real terms with less and less discretionary cash but far more debt. Where are we now? 1.34 trillion?

When the great British public wake up one morning and realise that house prices were just opinion whereas debt is real it will dawn on them that they have been had. Once the sense of wealth through house prices devaporates there is nothing left other than bills. An alternative name for the "miracle economy:"

Le Grande Deception

Edited by Realistbear

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http://uk.news.yahoo.com/rtrs/20070801/tuk...bt-fa6b408.html
Eight million adults in serious debt
By Jennifer Hill Reuters - Thursday, August 2 12:16 amLONDON (Reuters) - More than eight million British adults are in serious debt, an increase of 30 percent in the past year, largely due to rising interest rates, according to research published on Thursday.
Some 8.2 million people, equivalent to 18 percent of the adult population, have 10,000 pounds or more of unsecured debt -- such as credit cards, overdrafts, loans and store cards -- according to a quarterly survey by debt consultancy Thomas Charles.
The number of people struggling to meet debt repayments has also increased....../
"A record rise in house prices -- especially in London and the south-east -- has led to a growing discrepancy between mortgage payments and salaries.
"The high pressure to maintain social and commercial status, particularly experienced by women, often goes hand in hand with high expenditure on the high street.
"Borrowers affected by the higher interest rates now are storing up debt problems for the future; instead of making cuts in their personal expenditure, they are taking on further unsecured loans and credit cards."
The Department of Trade and Industry is due to report personal insolvency figures for the second quarter of 2007 on Friday.

They should consider themselves very fortunate indeed that they live in Gordon's miracle economy where debt is just illusion. Have a problem? Just take out another home equity loan or accept that offer for another credit card. What could be easier for your peace of mind as your financial troubles melt away.

Yeh but they have a nice big house,all the mod cons,nice news cars ,but they have trouble sleeping at night and own very little of assets in reality.Will all end in tears.

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"Fantasy Island - Waking up to the incredible economic, political and social illusions of the blair legacy" by Larry Elliott and Dan Atkinson.

Larry Elliott - economic journalist for The Grundiag has been holding his cards close to his chest. Spills the beans in this book! Excellent read! Relates well to RB's post.

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