Friday, February 8, 2008

Collectively Britons owe more than £1.3 trillion and millions are struggling with repayments

Britain's debt by numbers

The number of people whose homes were repossessed last year rose by 21 per cent, but repossessions are just one indication of the UK’s deepening debt crisis. The scale of individual debt, both through mortgages and other debts such as credit cards and personal loans, has increased sharply over the last ten years. By the end of December 2007, total lending to individuals reached £1,409 billion, figures from the Bank of England show. Of this £1,409 billion, £1,185 billion was mortgage lending with the remainder £224 billion consisting of consumer credit including credit cards. This compares to the £419 billion of secured debt and £84 billion unsecured in May 1997.

Posted by jack c @ 11:14 PM (942 views)
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4 thoughts on “Collectively Britons owe more than £1.3 trillion and millions are struggling with repayments

  • we are living in a country that the people have been usa ised , we dont care what we owe as long as we can pay the minimum. the milk snatcher started it and odd couple finished it off. A SCOT CHEERS FOR SCOTLAND, A GERMAN FOR GERMANY AND AN ENGLISHMAN CHEERS FOR ENGLAND. DAVID IS SO STUPID HE CHEERS FOR CAMEROON .

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  • Landofconfusion says:

    I think that this particular problem – rising debt – will be the root cause of the HPC. Right now people are up to their eyeballs in debt and there are a number of things which could easily cause this mess to run into a recession.

    Greenbay, you keep pointing to the employment numbers and interest rates, saying how good they are. Well, while they are late warning signals you should NOT assume that just because they are ok at the moment that everything is peachy. In a recession both will go the wrong way but it’s what happens *before* that which really matters.

    Right now we have an economy based on a huge amount of debt and this obviously cannot be sustained. In fact, it’s so bad I would say that the government (which is in charge of a very large public deficit) will forced to ether increase interest rates, increase taxation, cut spending or more likely all three. If the first two were to happen, what do you think it would do to our job and (overpriced) housing markets?

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  • Landofconfusion says:

    Has anyone read the first response to this article (posted at the bottom of the article’s page)? it reads:

    ” Has anyone thought about the fact that there is now no state help for the first 9 months after losing your job.Isn’t this also capped to £125,000?I believe these changes took effect
    from Monday 2nd October 1995.During the last housing slump,most of the mortgage interest was paid for by the tax payer.This isn’t the case this time round.This is why I think
    things could get very nasty by this time next year.

    stephen hulton, eure, france ”

    It’s a very good point. This time around people who loose their jobs will probably have massive debts and get no help from the government (for 9 months).

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  • mark wadsworth says:

    Altho. the aggregate figures help make comparisons over time, it is still meaningless. If that £1.2 trn mortgage debt were share equally by working age households, it’d be £100,000 each (roughly) and an average household can afford to pay interest on that. It is far more relevant that there are a small number of people whose houses are being repossessed because their debts have spiralled.

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