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Thousands More In Debt Trap


Guest Charlie The Tramp

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Guest Charlie The Tramp

Thousands more in debt trap

Darren Behar

The Mail

The number of borrowers struggling to meet their debts is growing, analysts warned yesterday.

Thousands are falling behind on repayments to their banks.

Halifax-Bankof Scotland, for example, revealed that the value of unsecured lending-such as credit cards and personal loans-where borrowers were three months in arrears or more rose by over 20 per cent in the last year.

The increase, from £1.4 billion to £1.7 billion suggests that five interest rate rises since November 2003 have had a dramatic impact on some borrowers. They have made debts more expensive, leaving many finding it hard to meet payments.

Consumer credit experts believe HBOS is not the only bank to see such a rise. It will add to concerns that many Britons are facing a debt crisis that could leave millions in financial ruin.....................

The Consumer Credit Counselling Service said: " There seems to be signs that debt levels are going up and some people are getting into trouble. If there is a change in unemployment or interest rates, it will be bad news"

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..facing a debt crisis that could leave millions in financial ruin.

And they only have themselves to blame. Still, I'm sure the media - especially TV - will pull some bleeding-heart stories from somewhere about some poor souls who 'just happened' to run up debts of thousands they can't now pay. And how it must be someone else's fault - like those Nasty Banks or Over Zealous Credit Card Companys.

And don't get me started over the 'poor souls' who now find themselves in negative equity. That, once again, will get blamed on the government and/or the banks - not the stupid gits who actually took out the loans in the first place, and hence pushed prices way out of kilter for the sensible members of society.

Let 'em burn! :angry:

Nomadd

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Oh, yes, those poor souls who have been gloating away nearly every day about their new car/house/holiday/designer clothes/raised decking in garden/ipod/plasma screen/botox injections/M&S ready meals/Pinot Grigo x3 per night/beauty wax and blow dry x1 weekly/saville row shirts/nannies/implants (men and women)

People who are paid (by an employer) are not upper class, so why do they read Elle and try to match their lives accordingly? They have all done it to themselves and very soon I will say to all and sundry "I'm alright Jack" and with no remorse.

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Guest Charlie The Tramp
Four million people could be living in households with debts greater than they can afford, according to a study published today which calls on the government to make it illegal for finance companies to overburden customers with loans.
Make it illegal to knowingly over-indebt a borrower (with the courts determining when this has occurred).

And the Bulls say it is different this time in comparison with the 1989 crash.

Well I must agree with them it most certainly is, the coming year will bring forth many shocks.

The lenders will be forced to act more responsible, back to 3.5 earnings, tightening self cert, insisting on proof of investment for IO mortgages, and BTL mortgages capital repayment only.

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And the Bulls say it is different this time in comparison with the 1989 crash.

Well I must agree with them it most certainly is, the coming year will bring forth many shocks.

The lenders will be forced to act more responsible, back to 3.5 earnings, tightening self cert, insisting on proof of investment for IO mortgages, and BTL mortgages capital repayment only.

here here, banks should also loose their self-regulations.

could have something like ofdebt! or a D ebt S upport A gency

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Oh, yes, those poor souls who have been gloating away nearly every day about their new car/house/holiday/designer clothes/raised decking in garden/ipod/plasma screen/botox injections/M&S ready meals/Pinot Grigo x3 per night/beauty wax and blow dry x1 weekly/saville row shirts/nannies/implants (men and women)

People who are paid (by an employer) are not upper class, so why do they read Elle and try to match their lives accordingly? They have all done it to themselves and very soon I will say to all and sundry "I'm alright Jack" and with no remorse.

Yes, some people have just got too greedy.

I heard a good quote the other day, we're no longer living in times of 'keeping up with the Jones', more like 'keeping up with the Beckhams' - very true.

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Guest Charlie The Tramp
Yes, some people have just got too greedy.

I heard a good quote the other day, we're no longer living in times of 'keeping up with the Jones', more like 'keeping up with the Beckhams' - very true.

Who will be the next to buy their six year old son a £25k pair of diamond earrings for his birthday, it beggars belief. :(

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1) people in debt 'generally' have only themselves to blame (this excludes unforseen thinkgs like redundancy)

2) you cant always blame the finance companies becuase they don't necessarily know what other finance with any other company the borrower has.

3) Equifax and Experian, who are credit referencing agencies do not hold all details of finance agreement from all finance companies. IE, there are some companies that do not use both services.

4) there has just been intoduced a computerised 'consumer indebtedness' package that will help identify people who can'rt afford to take on more finance, but its only as good as the data thats kept on a person.

5) credit card companies with zero % balance transfers should do something to ensure that the 'old' card is not kept open as well as the 'new' card.

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1) people in debt 'generally' have only themselves to blame (this excludes unforseen thinkgs like redundancy)

Not always the fault of the debtor!

2) you cant always blame the finance companies becuase they don't necessarily know what other finance with any other company the borrower has.

Why the hell don't they!

3) Equifax and Experian, who are credit referencing agencies do not hold all details of finance agreement from all finance companies. IE, there are some companies that do not use both services.

Why not!

4) there has just been intoduced a computerised 'consumer indebtedness' package that will help identify people who can'rt afford to take on more finance, but its only as good as the data thats kept on a person.

Its a bit late!

5) credit card companies with zero % balance transfers should do something to ensure that the 'old' card is not kept open as well as the 'new' card.

No follow up checks!

And there you have it Derek, is the debt really the fault of so many that are not financially educated or the fault of a dislocated financial system which fails to communicate internally, check the use of its own money etc etc!.

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1) people in debt 'generally' have only themselves to blame (this excludes unforseen thinkgs like redundancy)

I agree that personal responsibility is a virtue that is missing amongst western societies at the moment. This could be due to the nanny state and the litigation culture. However I do think that the banks should share some of the responsibility for todays debt.

2) you cant always blame the finance companies becuase they don't necessarily know what other finance with any other company the borrower has.

3) Equifax and Experian, who are credit referencing agencies do not hold all details of finance agreement from all finance companies. IE, there are some companies that do not use both services.

They should do though shouldn't they? Is it unresonable to expect there to be a central database?

4) there has just been intoduced a computerised 'consumer indebtedness' package that will help identify people who can'rt afford to take on more finance, but its only as good as the data thats kept on a person.

5) credit card companies with zero % balance transfers should do something to ensure that the 'old' card is not kept open as well as the 'new' card.

Whilst I believe that people should be made resonsible for not taking on too much debt, and should face the concequencies when they do, I also believe that we should make it harder for banks to push people further into debt then they need to be. Unless we start making GCSE Economics part of the national curriculum then I don't see how we can expect people to understand financial management.

Likewise most of the banks could do with a crash course in ethics. The CEO of HSBC recently said that a successful economy always has sucessful banks. I trust the CEO of HSBC didn't use the same line on the Argentineans after they refused to honour their account holders deposits in dollars.

The argument about credit is very similar the the argument about drugs. Is the addict the criminal or the victim?

But which ever way you look at it, the banks are the pushers!

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Guest Charlie The Tramp
is the debt really the fault of so many that are not financially educated

They may not be financially educated, but they are always clever enough to know their rights to benefits. My accountant who is also an insolvency practitioner told me he cannot believe the number of these uneducated financial people who know about the new bankruptcy laws.

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With people able to rack up 40 odd or 60 odd credit cards and get into totally unpayable levels of debt I don't think that the credit databases are worth a pile of beans - either that or lenders are simply ignoring the warning signs.

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People who are paid (by an employer) are not upper class, so why do they read Elle and try to match their lives accordingly?

Because David and Victoria Beckham (spelling? - sorry, don't read The Sun) are working class. If they can live like a King and Queen, then all the other 'working class' folks believe they should to. Of course, they forget the £50 million that the Becks have in the bank to fund their lifestyle. The current population think that endless credit will easily deal with that ever so small problem. I mean, £10,000.00 in DEBT is the same as having £10,000.00 in SAVINGS, isn't it? :blink:

Nomadd

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1) people in debt 'generally' have only themselves to blame (this excludes unforseen thinkgs like redundancy)

2) you cant always blame the finance companies becuase they don't necessarily know what other finance with any other company the borrower has.

I don’t completely blame desperate people. the herd mentality comes

from being shepherded by the institutions.

I along with plenty other people got stitched up on endowment mortgages

at the time you got shepherded into it, didn’t have much choice

The government handed control of the economy to the Bankers

A Banker’s business is to make money out of debt

It’s no wonder we’re in this type of mess!

We’re in the biggest debt crisis in history, no ones going to be unaffected!

in debt or not, the knock-on effect will hurt.

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'Ahh, bring back the good old days of the debtor's prison'

You mean having to slave away at the office every day !

For the last couple of years i must have been offered a loan a day yet i have not borrowed one penny others chose to get as much 'credit' as possible it was a free choice of lifestyle but now the big bill has arrived and the banks will repo and engineer a depression ready for the next cycle.

The bankers control the world.

I do have some sympathy for BTL investors at least they borrowed to make money it is the credit card junkies who borrowed to consume i have less sympathy for.

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A central database is there, maintained by Equifax and Experian BUT there is no compulsion for a finance authority to contribute to it (the finance company has to pay to access it). Plus it might not be in a finance companies interest to put its loan book on shared access.

Even then, different lenders take different views on 'indebtidness'

I guess only legislation will force a central database, and that is not going to happen in the short-medium term.

I really don't know what the answer is. If someone really wants finance they will find a way to get it.

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3) Equifax and Experian, who are credit referencing agencies do not hold all details of finance agreement from all finance companies. IE, there are some companies that do not use both services.

I have exactly this problem, with equifax showing no accounts whatsoever and experian showing two. So much for "up to date" and "accurate" records, which is an obligation under the regulations for credit agancies, ALL of whom are in breach of the Data Protection Act in this regard.

Equifax and Experian indirectly contribute to the culture of excessive credit, since they will only give you a decent score if you already have a credit card, and preferably more than one. If you have a bank account with a healthy balance, NO debt, NO overdraft and run a debit card, none of these is likely to be registered.

In other words you can be deemed UNcredit worthy by having no credit and running no debt whatsoever. On the other hand if you have multiple credit cards and use one to pay off the other in rotation, you will still show as having a high credit score. You could be indebted up to the eyeballs and still have a high credit rating and access to FURTHER credit.

This is completely the wrong way round. But of course nearly all the financial institutions think this is perfectly acceptable.

Crazy world.

VP

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VacantPossession,

The last post is a typical misconception of 'Joe Public', who often blame Equifax and/or Experian for excessive credit, not being able to get credit etc.

I actually WORK for one of these 2 agencies - they are credit REFERENCE agencies.

Neither of them recommend acceptance or refusal for finance. All that they do is store the information for the finance companies to use.

As far as data protection goes, yes the information must be accurate BUT that does not mean that Equifax must have a duplicate of Experian data and visa versa.

It is up to the finance company to decide who they use (and they have to pay for the priviledge), some finance companies use both agencies, some use one or the other, some use neither agency.

Equifax and Experian get a lot of stick 'they refused my credit application', when in fact they had nothing to do with it.

As you will probably appreciate, all finance companies have different ways that the information is used. One might accept you for a loan and the other refuse you, it up to the fincance company NOT Equifax or Experian.

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Guest Charlie The Tramp
Has it really affected there lifestyle?

Whats the story with going bankrupt nowadays - was at a wedding talking to a liquidator - she was saying its a breeze.

Maybe it is, lets wait for the first bankrupts under the new laws to be discharged after 12 months, to see if they can then obtain credit. I think they may find they wished they had paid their debts. The only credit they get will be secured and at a higher rate. Personal bankruptcy is still a stigma and people will come to realise that.

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  • 439 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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