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" Uk Banks Write Off Record £6.8bn In Household Debt "

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http://www.telegraph.co.uk/money/main.jhtm...1/cndebt101.xml

UK banks write off record £6.8bn in household debt

By Edmund Conway Economics Editor
Last Updated: 1:39am GMT 01/03/2008
Britain's banks have been forced to write off a record chunk of household debt in the past year in the latest sign that families are struggling to keep up their repayments.
Lenders from around the country wrote off some £6.8bn in individual debts last year, statistics from the Bank of England reveal. It is the biggest annual total since records began in 1993, more than doubling in the past five years.
The news coincides with figures from Nationwide showing house prices are now suffering their worst streak since 2000, after falling for a fourth month in February...../
Alan Clarke, UK economist at BNP Paribas, said: "This is certainly a sign that households are already struggling. The debt burden is high, and you would expect write offs to rise as a result.
"But
it's still early days
and there's more bad news in the pipeline. We haven't yet seen arrears starting to bite, and if these numbers look bad now, they'll look even worse in a year's time. There are plenty more dead bodies out there."
..../

Brown is apprently up in my neck of the woods today attempting to re-launch himself ahead of the May local elections. He is going to tell the Brummies that he has given the nation 10 years of unbroken growth and that mortgage rates are low and inflation the lowest among the G7.

The problem for the miracle man is that mortgage payments are the highest they have ever been due to inflated house prices, inflation in real terms is above 7% for most people and the only reason we have had 10 years of growth is because we have been borrowing too much over that period.

The man is a fool.

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Guest barebear

I dont get it,when they say written off what do they mean ? Are these debts with no security like a house they can repo. They say written off but do they mean sold the debt to a debt collector.If the latter is the case then the debts would have been bumped up before they were sold.I used to work for an organisation that regularly sold of their bad debts but a lot of it had been increased themselves with charges penalties etc,they then sold the debt for 10% of what it was worth.

Anyway I have never had a debt written off,I wonder what they actually mean by this ??

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As banks' profits fall ever lower, I think they'll be less ready to just write off bad debts, and instead they'll begin to chase every last asset these poor barstewards have. It is going to get very nasty.

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As banks' profits fall ever lower, I think they'll be less ready to just write off bad debts, and instead they'll begin to chase every last asset these poor barstewards have. It is going to get very nasty.

I disagree. The costs involved in chasing low value high volume debts are not worth the effort for the banks.

The banks will sell off the debt to Debt Collection Agencies for peanuts because it hasn't really cost them anything.

The DCA's will continue to chase single mothers and those on benefits etc because they don't have any significant operating costs - a ten year old ford escort van, a bit of diesel, a clipboard and a PAYG mobile phone.

The MSE boards are full of tales of these companies.

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I dont get it,when they say written off what do they mean ? Are these debts with no security like a house they can repo. They say written off but do they mean sold the debt to a debt collector.If the latter is the case then the debts would have been bumped up before they were sold.I used to work for an organisation that regularly sold of their bad debts but a lot of it had been increased themselves with charges penalties etc,they then sold the debt for 10% of what it was worth.

Anyway I have never had a debt written off,I wonder what they actually mean by this ??

It means the bank re-values the asset (i.e. the loan) at £0 and do not expect to see it again.

I do not think that high street banks sell their loans on to lower level lenders as it would invite very bad publicity of a "I took out a mortgage with Lloyds but last week was told that Rachman Estates was my new lender" type.

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These type of figures are only going to get worse...new records will be set... and new found levels of woe and blame will be flying about the press. :ph34r:

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It means the bank re-values the asset (i.e. the loan) at £0 and do not expect to see it again.

I do not think that high street banks sell their loans on to lower level lenders as it would invite very bad publicity of a "I took out a mortgage with Lloyds but last week was told that Rachman Estates was my new lender" type.

I can assure you they do. After sorting out a finalisation for a friend who had an IVA resulting from debts to Lloyds, Barclays and Halifax I found that all three debts had been sold on three different times in four years and in the end had been purchased by a company called Max.

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Guest barebear
I can assure you they do. After sorting out a finalisation for a friend who had an IVA resulting from debts to Lloyds, Barclays and Halifax I found that all three debts had been sold on three different times in four years and in the end had been purchased by a company called Max.

Yeh they do for sure,I had a halifax credit card which I never got,a debt collector is chasing me for 157 pounds. No one listens Ive told them I never received it.This was four years ago and there still sending me letters.What makes me laugh is how did a credit card which was never used get a debt on it.

The answer is its all charges,Halifax charges,debt collector charges,court charges. So these write downs, what are they exactly ? Its a bit like me lending someone 50 quid ,he dies and I add charges and say Im writing down 200 quid but all the time Ive only lost 50.

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  • 293 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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