Monday, August 23, 2010

Groundhog day

New 'debt boom' fears as banks offer 'more generous credit card deals'

Despite warnings of a potential double dip recession, banks are presenting struggling customers with offers of cheaper debt than they made available before the 2007 economic crash. Experts warned that Britain could face a new “credit card boom” leaving families heavily in debt as they borrow to make ends meet and struggle to pay off the money.

Posted by flintster1994 @ 07:58 AM (4300 views)
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29 thoughts on “Groundhog day

  • tyrellcorporation says:

    Climb aboard!!! I’m not going to make the same mistake again. If there is going to be a new credit boom I’m going in with both feet. After all, you know you’ll simply get bailed out when the music stops. The banks will still be ‘too big to fail’. Borrow like you’ve never borrowed before and buy gold, housing, artwork, fine wines, classic cars, etc. That’s how the world works now isn’t it?

    A mate of mine spent the last 20 years buying the most expensive clothes and cars and exotic milky white beers at the pub while I’ll pottered around in 10 year old shirts, jeans with holes in and drank bitter. I now have a reasonable nest egg which is being eroded at an alarming rate and he had £25k wiped off his debt with the stroke of a pen about 2 years ago.

    Who’s the mug in all this?

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  • Tell me, who are ‘they’ the government, any government, likely to support, the sprawling masses of
    simple folk who will make their political allegiance on the colour of a tie or the promise of a few scarps
    of welfare.

    Or a few crackpots on a “well I played it by the book” internet lounge.

    You will never win, you are sandwiched between the victorious classes who look up and down and
    just laugh at your resolve.

    Let go and admit that you just made the wrong move.

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  • 1. tyrellcorporation

    So true.

    I have always suspected that some smart people got rich doing this, knowing there would be future chaos and in the moments of

    collapse defaulted. I’m referring to the smaller, not the obvious ones.

    It all makes so much sense now. No need for future loans anyway, as one would have the hidden treasures.

    There is no respect for the lending industry now, as the last cloak has fallen.

    Groundhog day indeed.

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  • tyrellcorporation says:

    ‘Let go and admit that you just made the wrong move.’

    Smuggy I admitted that to myself about a year ago now. I lived in hope but it never materialised and I don’t think it ever will. I think we’re withnessing a re-run of the 1970’s housing boom when Labour had their boom and then let inflation eat away at things for a few years until wages caught up.

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  • Getting into debt through living beyond your means is never the smart way forward. Charles Dickins had it spot on when he gave Mr Micawber this line:

    “Annual income twenty pounds, annual expenditure nineteen six, result happiness. Annual income twenty pounds, annual expenditure twenty pound ought and six, result misery”

    Personally, I would like to see a maximum interest rate, of perhaps base + 10%; so lenders only advance loans to people who they are confident can adequately afford to repay them.

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  • cat and canary says:

    “You will never win, you are sandwiched between the victorious classes who look up and down and
    just laugh at your resolve.”

    heh heh!! ..its a Brave New World we are entering! We are mere Beta, Gamma, Delta and Epsilons!

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  • The social pyramid requires this sort of injection or else the whole pack comes a tumbling down.

    It’s a wicked monster that we ‘all’ have nurtured in some way.

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  • Anyone with savings either needs to remove it from teh system, convert it to gold, or move it to a new bank. There must be some new entrants springing up, but I saw one on the telly and I wouldn’t let them look after my shoes, let alone my money. Seemed their USP was they let dogs crap inside the bank. Proper wierdos

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  • mark wadsworth says:

    @ Tyrell. We have to be careful here.

    If you have credit card debts, then those are “bad debts” and the government will not bail you out (unless you count going bankrupt as a bail out).

    If you have mortgage debts, then those are “good debts” and the government will cut the interest rate and even pay the interest for you if necessary.

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  • @8MW
    What if your mortgage debt includes MEWing cash spent on”stuff” just like a credit card? Do we pay the interest on this ?

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  • cat and canary says:

    🙂 …you have to give the Beta, Gamma, Delta and Epsilons seemingly endless supplies of “cheap free happy debt” to keep them compliant with the system!

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  • mark wadsworth says:

    @ Tyrell, 3.

    The blue wing of the HO party which is currently in government would probably dearly love to “do a Labour mid-1970s” and have inflation so that house prices don’t fall in nominal terms, but there is a big difference between then and now!

    Remember that we can only have high or hyper inflation if we also have currency controls, which we very much still had in the mid 1970s. With freely tradeable currencies, you just don’t get hyper inflation (I’m not entirely sure why this is so, but it is always borne out in practice).

    So the correct analogy is Japan, where they had QE coming out of their ears but no currency controls, and they’ve had modest deflation and sliding house prices for ten or twenty years.

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  • based on personal experience my credit cards get a monthly reduction on the credit limit, so IMO it looks like banks are tightening the credit.

    as for smugdog I am curious what qualifies him to make sweeping statements

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  • I dont want to wait 10 or 20 years – so the tories wont ever get my vote if that happens – and I doubt if 10 to 20 years of HP deflation is going to encourage many votes from teh homeownerists either!! If the tories have a shred of intelligence, they will crash it quick. A lot quicker than they are currently managing.

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  • mark @11 – Try paying off just the minimum each month. I think your credit limit will start going up.

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  • Regarding the actual article, why is it such a surprise that credit cards are getting cheaper? With interest rates near 0%, I’d have thought all credit would be cheaper – regardless of whether it’s a mortgage, car loan, credit card, or anything else.

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  • 12 inbreda

    I have heard a rumour the credit rating for UK is in serious danger of being down graded, this if it happened would push the uk in the Greek spiral .

    personally I think the government are trying to crash houses, but BOE has too much of a vested interest in properties, I think each MPC member should be investigated on the assets they own

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  • As for Mark, I’m not at all curious as to what qualifies the majority of self appointed experts on this blog.

    After all, they haven’t got very much right so far as far as I can see.

    Except Techie of course, who is seldom wrong :).

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  • smugdog try going through the history you will see i have got share prices right and make good money from it.

    I am also own a successful business.

    now it is your turn or have you had your tail docked lol

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  • “household debt will top £1.8 billion by 2015”. That would be £1.8 trillion. That’s more than GDP. Govt debt is about 60% of GDP (although some would point to unfunded liabilities on top of that. It’s still worth remembering when we talk about the evils of govt debt.

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  • Well done, I bow to your undoubted success and superiority.

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  • Ha ha smug had his tail docked and kahoonas chopped off, he clearly isn’t qualified to make any statements all he can do is offer daft or stupid remarks and cannot offer any defence.

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  • And that, Mark, is the reason I allow all his comments to go unchallenged. He’s a troll, plain and simple.

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  • Hey… leave the mutt alone….. he brings colour and balance…… He dont go on an on bout how many companies…gold…shares he’s got….. he may take the pee but he’s good value in my eyes…….. LAY OFF

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  • Clearly! (one anonymous blogger to another).

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  • Mark, I’m up at the Grosvenor in Pulford next week, fancy meeting for a chat?

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  • Insolvencies


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  • smug I have no idea where that is.

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  • Sure you do, just past Gerald Grosvenor’s pad, out of Chester from the Posthouse roundabout towards Rossett.

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