Personal debt in Britain has reached £1.4tn
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Personal debt in Britain has reached £1.4tn
Article in the Guardian.
• Personal debt in the UK, including mortgage lending, stands at £1.4tn – an average of £54,000 per household compared with £29,000 a decade ago.
• Consumer debt had trebled since 1993 and now stands at £158bn;
• More than 8m households have no savings, including half of low-income households;
• Outstanding debt on credit cards has almost trebled since 1998 to reach £55.6bn;
• There were 300,000 arrears on mortgage in 2012 – with 34,000 homes repossessed. This is a reduction of 30% from the peak of the recession but a 60% overall increase since 2006.
No surprise that house prices roughly correlates with the level of household debt I think!? We almost doubled debt in 10 years and house prices did similar.
Although everyone seems confident about the housing market it looks pretty exposed to an interest rate rise because as a nation we are so leveraged up.
What do you think?
• Personal debt in the UK, including mortgage lending, stands at £1.4tn – an average of £54,000 per household compared with £29,000 a decade ago.
• Consumer debt had trebled since 1993 and now stands at £158bn;
• More than 8m households have no savings, including half of low-income households;
• Outstanding debt on credit cards has almost trebled since 1998 to reach £55.6bn;
• There were 300,000 arrears on mortgage in 2012 – with 34,000 homes repossessed. This is a reduction of 30% from the peak of the recession but a 60% overall increase since 2006.
No surprise that house prices roughly correlates with the level of household debt I think!? We almost doubled debt in 10 years and house prices did similar.
Although everyone seems confident about the housing market it looks pretty exposed to an interest rate rise because as a nation we are so leveraged up.
What do you think?
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But yes rents pumped up by private landlords together with the 'everybody must own their own house' government initiatives are plain scary
I guess all those bulgarian will need a place to stay for a few months though
I guess all those bulgarian will need a place to stay for a few months though
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#13
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Its sometimes difficult though when the government pull the rug from under you.
Family living in a house well within their means - suddenly a job loss here, reduction in salary there, 10% on your gas bill, 15% on your council tax, reduction of your house price.....
That's when it becomes FUBAR
Family living in a house well within their means - suddenly a job loss here, reduction in salary there, 10% on your gas bill, 15% on your council tax, reduction of your house price.....
That's when it becomes FUBAR
#16
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If you can get over the sensationalist headline and dig a little deeper, you'll find that consumer debt including mortgages have been at this level since the financial crisis in 2008. Consumer spending is up and is one of the reasons why GDP is rising again whilst debt has remained flat over the last five years. 90% of household debt is made up of mortgage payments and cash and credit card borrowing has come down from £210bn in 2008 down to £160bn in 2013. Bottom line is the growth we're seeing is not fuelled by debt. So we're not that f*cked IMO.
Last edited by jonc; 20 November 2013 at 05:29 PM.
#21
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I've said it before - and I'll say it again - it's mainly due to the fecking *insane* house price levels in this country......
I'm lucky - we bought at right time, now have no mortgage - debt free - but for my kids to afford a house like we have now - I can't ever see it happening without them being hocked up for 50yrs with a huuuuge mortagage, thats if they can ever get one when (if) they leave university already £50k in fecking debt!!!!!!!
RANT OFF..... and breeaaathe
I'm lucky - we bought at right time, now have no mortgage - debt free - but for my kids to afford a house like we have now - I can't ever see it happening without them being hocked up for 50yrs with a huuuuge mortagage, thats if they can ever get one when (if) they leave university already £50k in fecking debt!!!!!!!
RANT OFF..... and breeaaathe
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If you can get over the sensationalist headline and dig a little deeper, you'll find that consumer debt including mortgages have been at this level since the financial crisis in 2008. Consumer spending is up and is one of the reasons why GDP is rising again whilst debt has remained flat over the last five years. 90% of household debt is made up of mortgage payments and cash and credit card borrowing has come down from £210bn in 2008 down to £160bn in 2013. Bottom line is the growth we're seeing is not fuelled by debt. So we're not that f*cked IMO.
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I've said it before - and I'll say it again - it's mainly due to the fecking *insane* house price levels in this country......
I'm lucky - we bought at right time, now have no mortgage - debt free - but for my kids to afford a house like we have now - I can't ever see it happening without them being hocked up for 50yrs with a huuuuge mortagage, thats if they can ever get one when (if) they leave university already £50k in fecking debt!!!!!!!
RANT OFF..... and breeaaathe
I'm lucky - we bought at right time, now have no mortgage - debt free - but for my kids to afford a house like we have now - I can't ever see it happening without them being hocked up for 50yrs with a huuuuge mortagage, thats if they can ever get one when (if) they leave university already £50k in fecking debt!!!!!!!
RANT OFF..... and breeaaathe
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Yeah what do you think being a property developer?
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If you can get over the sensationalist headline and dig a little deeper, you'll find that consumer debt including mortgages have been at this level since the financial crisis in 2008. Consumer spending is up and is one of the reasons why GDP is rising again whilst debt has remained flat over the last five years. 90% of household debt is made up of mortgage payments and cash and credit card borrowing has come down from £210bn in 2008 down to £160bn in 2013. Bottom line is the growth we're seeing is not fuelled by debt. So we're not that f*cked IMO.
Plus also there is the issue of servicing it which we are just managing with record low interest rates.
#29
Yes but interest on the debt as a percentage of GDP is relatively low at 3.7%, similar to what it was in 1995.
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