Converted Lurker Posted February 6, 2008 Share Posted February 6, 2008 One in four home owners struggling to meet mortgage payments - KPMG One in four home owners struggling to meet mortgage payments - Reducing credit limits and the end of cheap fixed mortgage deals likely to push many over the edge... Almost one in four (22 per cent) people with mortgages and other debts find it difficult to meet repayments according to a new survey commissioned by professional services firm, KPMG. This is the equivalent to nearly seven million people in the UK struggling to cope with their existing debt. The outlook for the next 12 months does not offer any respite. When polled by YouGov 35 per cent of those living with debt - equivalent to 11 million people - admitted that they are likely to find it increasingly difficult to meet repayments in the coming year. http://firstrung.co.uk/articles.asp?pageid...&cat=44-0-0 Quote Link to comment Share on other sites More sharing options...
Leonard Hatred Posted February 6, 2008 Share Posted February 6, 2008 Just how much is Britain in the shit? Well, we're seeing stories like this with interest rates at FIVE AND A HALF PERCENT. Quote Link to comment Share on other sites More sharing options...
OurDayWillCome Posted February 6, 2008 Share Posted February 6, 2008 Just how much is Britain in the shit? Well, we're seeing stories like this with interest rates at FIVE AND A HALF PERCENT. ...and, according to the Halifax, sound fundamentals. Quote Link to comment Share on other sites More sharing options...
It is different this time Posted February 6, 2008 Share Posted February 6, 2008 Chickens "must have/own, buy now pay later culture" come home to roast! Quote Link to comment Share on other sites More sharing options...
Converted Lurker Posted February 6, 2008 Author Share Posted February 6, 2008 there is so much negative news of late it's gone past the point of return for so many. I reckon the only 'glue' preventing mass panic is clever meeja control to protect vested interests (way above the usual suspects). That drawbridge of protection is close to being shut, once the super wealthy financial masters of the universe have 'called it' and we're surely very close now, they'll start pouring the hot oil on the rest of us plebs from their towers and barricades. Quote Link to comment Share on other sites More sharing options...
bobthe~ Posted February 6, 2008 Share Posted February 6, 2008 there is so much negative news of late it's gone past the point of return for so many. I reckon the only 'glue' preventing mass panic is clever meeja control to protect vested interests (way above the usual suspects). That drawbridge of protection is close to being shut, once the super wealthy financial masters of the universe have 'called it' and we're surely very close now, they'll start pouring the hot oil on the rest of us plebs from their towers and barricades. Absolutely this is scary stuff. What's the new avatar btw? Is it from "Warriors"? Quote Link to comment Share on other sites More sharing options...
Guest Charlie The Tramp Posted February 6, 2008 Share Posted February 6, 2008 Credit Action Stats February 2006 two years ago, so what` new. Credit Action February 2006 Research from AXA shows money worries are a significant cause of worry, anxiety and stress according to GP and leading mental health expert, Dr Roger Henderson, who recently published a paper identifying the condition Money Sickness Syndrome (MSS). Almost half (43%) of the UK adult population is affected by money worries and have experienced MSS symptoms. 3.8m people admit money worries have caused them to take time off work and more than 10.76m people suffer relationship problems because of money worries, with almost one in five complaining of a sex life slump. ( Now that is worrying Whilst the concept of ‘spending the kids’ inheritance’ may be nothing new, it appears that many of those in their forties or fifties are prepared to spend their own retirement funds to finance their current lifestyles. According to Insight Investment, well over a quarter of forty and fifty somethings (29 per cent) say that enjoying their money now is more of a priority than investing for the future. This ‘live for the moment’ attitude is despite well over a third (39 per cent) of those aged 45-54 admitting to having no investments other than residential property, a situation in which more than one in four (27 per cent) of the over 55s also find themselves. The majority of Britons would be unable to cope financially in the event of a minor household emergency according to the Alliance & Leicester. Just 28% said they had money put aside which could be used to replace household appliances, such as a cooker or fridge. Even in the current benign economic environment, the Financial Services Authority (FSA) are seeing signs of growing distress among consumers, including more insolvencies, more late payments on credit cards and a rise in mortgage repossession orders. Their consumer research shows that many consumers with significant borrowing commitments are currently struggling to keep up with repayments. They say it is important that, before taking on new debt, consumers assess their ability to service it, especially if their circumstances change unexpectedly. Quote Link to comment Share on other sites More sharing options...
Lepista Posted February 6, 2008 Share Posted February 6, 2008 What's the new avatar btw? Is it from "Warriors"? My guess is either 'mad max' or 'waterworld'? Quote Link to comment Share on other sites More sharing options...
Methinkshe Posted February 6, 2008 Share Posted February 6, 2008 If 1 in 4 home owners are already struggling to meet mortgage payments, what happens when a recession kicks in and people start losing their jobs? The outlook is grim..... Quote Link to comment Share on other sites More sharing options...
Converted Lurker Posted February 6, 2008 Author Share Posted February 6, 2008 Absolutely this is scary stuff.What's the new avatar btw? Is it from "Warriors"? yes mate, that's Swan at the front, reminds me of my youth, two gangs in Liverpool; the Swan and the Brook used to have pitch battles in the early - mid 70`s in the pub car park behind my house. My mate was Ajax, our fighting days are well behind us Quote Link to comment Share on other sites More sharing options...
Converted Lurker Posted February 6, 2008 Author Share Posted February 6, 2008 If 1 in 4 home owners are already struggling to meet mortgage payments, what happens when a recession kicks in and people start losing their jobs? The outlook is grim..... 'Sweet Caroline' Flint better get building some new eco friendly council homes then hadn't she They've built 3 so far, only 150,000 behind target Quote Link to comment Share on other sites More sharing options...
detached Posted February 6, 2008 Share Posted February 6, 2008 The outlook for the next 12 months does not offer any respite. When polled by YouGov 35 per cent of those living with debt - equivalent to 11 million people - admitted that they are likely to find it increasingly difficult to meet repayments in the coming year. http://firstrung.co.uk/articles.asp?pageid...&cat=44-0-0 I wonder how these 11 million people will react in the coming months? Will they reduce their 'non-essential'/leisure spending? This could lead to an abrupt economic slowdown quicly followed by a sharp and sudden rise in unemployment with some much of UK labour force working in the great service economy ....... Growth down and unemployment up - I think the fundamentals of UK plc are going to markedly deteriorate to use the sort of phrase economists relish. Quote Link to comment Share on other sites More sharing options...
marko Posted February 6, 2008 Share Posted February 6, 2008 Well, just out of interest, I have recently moved into a rented house, and the idiot who lived there before me (who moved to buy - this is your first clue) has not managed to get round to redirecting his financial post. I have told him about this and even delivered a load myself to his new address...but it still keeps coming. So the other day I decided f**k it and opened two of his letters...naughty I know, but I am fed up with receiving them, and if he can't manage his financial affairs any better then it is not my problem. I was just curious. He has one loan with Tesco at 4.5k, which he has just requested to lower the monthly payments on (by increasing the term - what a clever clogs he must be to pay less money ). He also has 7.5k outstanding on his Virgin Money credit card, on which he is making minimum payments, and on which the interest rate just went up. Having met him, I have to say he wasn't unpleasant, but he is definitely a podgy wide-boy with that kind of shallow confidence that is obviously backed up by sweet FA - he would be perfect as an EA! God knows how much mortgage debt he recently took on, or other debts he may have swilling around his toilet-bowl finances. I just thought I would post this in order to illustrate two things: 1) A LOT of people who seem fine on the surface are in serious, serious, serious SH1T 2) If there are enough of them, they are going to drag the rest of us down with them. Quote Link to comment Share on other sites More sharing options...
fluffy666 Posted February 6, 2008 Share Posted February 6, 2008 Well, just out of interest, I have recently moved into a rented house, and the idiot who lived there before me (who moved to buy - this is your first clue) has not managed to get round to redirecting his financial post. I have told him about this and even delivered a load myself to his new address...but it still keeps coming.1) A LOT of people who seem fine on the surface are in serious, serious, serious SH1T 2) If there are enough of them, they are going to drag the rest of us down with them. What I find strange is that someone must have given him a mortgage.. why on earth are the banks giving mortgages to people with 5 figure debts (and presumably no savings)?? Surely they actually check on these things..? Quote Link to comment Share on other sites More sharing options...
huw Posted February 6, 2008 Share Posted February 6, 2008 If 1 in 4 home owners are already struggling to meet mortgage payments, what happens when a recession kicks in and people start losing their jobs? The outlook is grim..... I suspect that words like 'hardship' and 'struggle' have been warped in modern, want-it-all-want-it-now Britain. I suspect that many worried respondents to such surveys are still eating out, smoking fags, buying pints, taking holidays etc ... and that they will be in for a shock when the real difficulties start! Quote Link to comment Share on other sites More sharing options...
huw Posted February 6, 2008 Share Posted February 6, 2008 Well, just out of interest, I have recently moved into a rented house, and the idiot who lived there before me (who moved to buy - this is your first clue) has not managed to get round to redirecting his financial post. I have told him about this and even delivered a load myself to his new address...but it still keeps coming.(snip) Be careful, his creditors have your address on their files, far from ideal! Quote Link to comment Share on other sites More sharing options...
marko Posted February 6, 2008 Share Posted February 6, 2008 Be careful, his creditors have your address on their files, far from ideal! I rather think it is stretching it to suggest that my living in his old house makes me somehow responsible for his p1ssy debts. Perhaps I should give them a ring and tell them his new address. Quote Link to comment Share on other sites More sharing options...
huw Posted February 6, 2008 Share Posted February 6, 2008 I rather think it is stretching it to suggest that my living in his old house makes me somehow responsible for his p1ssy debts. Perhaps I should give them a ring and tell them his new address. That's what I meant ... if you just left things you might get bailiffs on your doorstep or even entering your premises and cataloguing/valuing your possessions... Quote Link to comment Share on other sites More sharing options...
benj Posted February 6, 2008 Share Posted February 6, 2008 What I find strange is that someone must have given him a mortgage.. why on earth are the banks giving mortgages to people with 5 figure debts (and presumably no savings)?? Surely they actually check on these things..? They do indeed. Oh yes. In the miracle economy, if you have 5 figure debts but you're making the minimum payments each month, it's considered proof that you're creditworthy. Quote Link to comment Share on other sites More sharing options...
fluffy666 Posted February 6, 2008 Share Posted February 6, 2008 That's what I meant ... if you just left things you might get bailiffs on your doorstep or even entering your premises and cataloguing/valuing your possessions... This is why we are glad we changed the locks and added a padlock to the side gate just after moving into our new house. Last owners were somewhat lacadasical in the whole debt-repayment thing - we've had several debt chasing letters and one baliff visit. Have a nasty feeling that the set of keys that 'went missing' during the house purchase may well have ended up in the wrong hands, although to be fair it could just have been the bad luck that caused the instructions for the burglar alarm to go missing as well.. Quote Link to comment Share on other sites More sharing options...
marko Posted February 6, 2008 Share Posted February 6, 2008 That's what I meant ... if you just left things you might get bailiffs on your doorstep or even entering your premises and cataloguing/valuing your possessions... If anyone tried this I would have them in court faster than they could apologise. Reiteration: living where some debt-junkie used to live does not involve taking responsibility for their debts. Quote Link to comment Share on other sites More sharing options...
Lucinda Posted February 6, 2008 Share Posted February 6, 2008 If anyone tried this I would have them in court faster than they could apologise.Reiteration: living where some debt-junkie used to live does not involve taking responsibility for their debts. This happened to me shortly after I bought my first flat - the previous occupants fled back to Ireland with loads of outstanding debts. Bailiffs turned up (one bloke had two black eyes) after I showed them some ID to prove it wasn't me they wanted, they just went away. I must say Ifound it rather funny - but I was a lot younger then and a lot more carefree than now! Quote Link to comment Share on other sites More sharing options...
The XYY Man Posted February 6, 2008 Share Posted February 6, 2008 (edited) I just thought I would post this in order to illustrate two things:1) A LOT of people who seem fine on the surface are in serious, serious, serious SH1T 2) If there are enough of them, they are going to drag the rest of us down with them. This is very true. Getting people to admit debt is difficult. They'll tell Jeremy Kyle that they've shagged their sister, but own up to debt - no way. In 2005, I'd accrued £36,000 of unsecured debt which I paid off by STRenting. I then started asking colleagues about their situation. Most said things like "a few quid on the credit card", "a small loan for a car" etc etc. I then told them my situation and some of them then opened up and many were worse off than me. Many also earned less. The biggest denial was in the way they discounted mortgages ("that's not a debt"), car HP ("well you HAVE to have a car...") when calculating their total debt. My mortgage was less than £40,000, so my total was £76,000. Many of them had £100,000+ mortgages and other debts well into the tens of thousands. Years of "keeping up with the Joneses" seems to have convinced them they are rich. On the face of it, they are - but peel away the defence mechanisms and denial, and you'll find a lot of your family, friends and colleagues are hocked up to the eyeballs. I sold my house to sort my problems out (and still ended up with 5 grand in the bank) but I fear many of the people I spoke to have now missed that boat, and a lifetime of debt is what they (and the Joneses) will now be facing. Try it for yourselves at work tomorrow - the ones you can get to open up will surprise and shock you. Scary stuff... Edited February 6, 2008 by The XYY Man Quote Link to comment Share on other sites More sharing options...
Andoving Posted February 6, 2008 Share Posted February 6, 2008 MARKO If I was you, get a standard letter saying this d1ck is no longer living her and his new address is and any further correspondance will incur a £40 charge for handling by yourself. Then every time you get a letter addresses to the afroementioned d1ck open it, have a good read, tear the top off the letterhead with the address of the company on it, stick it to the outside of the envelope, put your letter and what what came with the original letter inside and write return to sender - not known at this address on the outside above the torn off, stuck down company address. No stamp needed. You will have to pay for cellotape, but it will be worth it to read the mail. Jobs a gooooooodun Quote Link to comment Share on other sites More sharing options...
debt_scared Posted February 6, 2008 Share Posted February 6, 2008 The biggest denial was in the way they discounted mortgages ("that's not a debt"), car HP ("well you HAVE to have a car...") when calculating their total debt. My mortgage was less than £40,000, so my total was £76,000. Many of them had £100,000+ mortgages and other debts well into the tens of thousands. It is truly amazing how many people don't consider their mortgage to be a debt. Intelligent, well educated people brainwashed. Quote Link to comment Share on other sites More sharing options...
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