Thursday, June 22, 2006

Biggest debt offenders getting even worse!

'Extreme debt' levels get worse

Levels of 'extreme debt' in the UK are worsening, says a charity which has seen the number of its clients owing more than £100,000 nearly double. The Consumer Credit Counselling Service saw the number of clients in extreme debt rise from 1.4% to 2.7% in a year.

Posted by webmaster @ 09:51 AM (589 views)
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3 thoughts on “Biggest debt offenders getting even worse!

  • The CCCS seem more intent of self publicity than on providing useful and meaningful data.

    Every few weeks we get a press release with an eye-catching headline, but not a lot besides.

    Thie definition of ‘extreme debt’ seems a bit abitrary – for a footballer earning a million a year, 100k debt is not much of an issue, but for someone on 15k a year it’s meltdown.

    A person has an income. From that, there are unavoidable living expenses that have to be paid. If the balance is less than the interest on the person’s debts, then that person is in financial meltdown.

    – that’s my definition of ‘extreme debt’

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  • The single point that stands out for me is the growth of debt problems in the over 60’s. I’m at a loss to understand and the only thing I can think of is that in the past the over 60s group probably grew up in an era where money was stashed in an old tea tin in a kitchen cupboard. Having a pulse seems to be the only criteria required to get a credit card these days maybe this generation are just naive to credit cards and their dangers.
    The same argument can be applied to young teens and those in their twentys too, who have never had much access to money up until being issued a credit card.
    I do wonder when I read articles like this as to whether the British public are developing into a bunch of idiots who have completely lost the ability to think for themselves and allow the media to tell them what they should thinking.

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  • You have to put the doubling of people in debt for 100k+ into perspective. A lot of the rise is insignificant when you take inflation into account.

    Whoops! No it isn’t !

    A friend of mine is moving her mortgage and increasing it at the same time. What’s more, although 6 or 7 years ago it was a 25 year term mortgage, when she moves it, it will be on a new 25 year term. Since buying the house, her mortgage has increased 30% and the term has remained at 25 years (i.e. even after 7 years, she is still facing another 25 years of repayments). If this is what happens when interest rates are at an historic low, what the hell is going to happen if rates go up??

    Her new mortgage will require her to continue payments beyond the age of 64. Assuming she doesn’t extend it further – fat chance!

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