I find this incredible........... (Roman)

michel · #1 12-05-2005, 04:42 PM

Debt Facts and Figures - Compiled 1st December 2005

Total UK personal debt broke through the £1.1 trillion barrier (£1,100,000,000,000) in June 2005. This is 11 months since it broke through the £1 trillion barrier in July 2004.

Britain's personal debt is increasing by £1 million every four minutes.

At the end of October 2005 the total UK personal debt was £1,138bn. The growth rate remains strong at 10.2% for the previous 12 months. 2004 saw the largest single-year increase in debt (£116bn) since the Bank of England was founded in 1694.

Total secured lending on homes in October 2005 was £946.9bn.

Total consumer credit lending to individuals in October 2005 was £191.4bn.

Total lending in October 2005 grew by £8.9bn. Secured lending grew by £7.6bn in the month and consumer credit lending grew by £1.3bn in the month.

Average household debt in the UK is approximately £7,749 (excluding mortgages) and £46,085 including mortgages.

Average owed by every UK adult is approximately £24,420 (including mortgages). This is growing £180 every month.

Average consumer borrowing via credit cards, motor and retail finance deals, overdrafts and unsecured personal loans has risen to £4,106 per average UK adult at the end of October 2005. This figure translates into a 10% increase on the previous year's levels and a 45% increase since 2000.

The rapid increase in households’ borrowing has raised total debt to close to 150% of annualised aggregate post-tax income according to the Bank of England. They predict debt may continue to increase more rapidly than income over the next few years.

Since the turn of the century in just over 5.5 years (based on figures available at 1st December 2005):

Total UK personal debt has increased by £529bn (87%) from £609bn to £1,138bn
Total secured lending on homes has increased by £453bn (92%) from £494bn to £947bn
Total consumer credit lending has increased by £76bn (66%) from £115bn to £191bn
Total credit card debt has increased by £24.3bn (76%) from £32bn to £56.3bn
Base Rate has decreased by 1.5% from 5.5% to its current rate of 4.5%
Average house price has increased by £90,383 (94%) from £96,340 to £186,723
Average earnings have increased by £5,077 (28.5%) from £17,803 to £22,880

Fluffy · #2 12-05-2005, 05:07 PM

For some reason the phrase "living on borrowed time" springs to mind

. How long can we continue borrowing before we break the bank, something snaps and we hit a depression?

michel · #3 12-05-2005, 05:20 PM

What is even worse (I have just been watching a taped episode of Trevor Macdonald's 'Tonight' programme); since the bakruptcy laws have been made easier, single young people, who have got themselves into bad debt are being advised to declare themselves bankrupt.

In other words, spend the money, repay by having all your possessions taken (if they are worth anything), and forget the debt. The tax payer will pay for it.

There's something wrong in that..........

Evenstar · #4 12-05-2005, 06:26 PM

Wow! this is unreal, I agree with fluffy. And to think I am proud to be British lol.

Bishka · #5 12-05-2005, 06:33 PM

It's sad how so many people are going for the material possensions that they think they need, and then get themselves into bankruptcy and then do it all over again. By the way, how many times can you declare bankruptcy?

almifkhar · #6 12-05-2005, 07:35 PM

there is one rule i have always lived by, if i don't have cash, i don't buy it. i don't care what kind of emergency comes along, i refuse to pay by plastic. if the majority of other people lived by this standard, there would not be a personal debt problem. what i cant seem to get is why people insist on living beyond their means?

Bishka · #7 12-05-2005, 07:37 PM

Quote:

Originally Posted by almifkhar

there is one rule i have always lived by, if i don't have cash, i don't buy it. i don't care what kind of emergency comes along, i refuse to pay by plastic. if the majority of other people lived by this standard, there would not be a personal debt problem. what i cant seem to get is why people insist on living beyond their means?

Why do people insist on living beyond their means. Human nature. They want more then anyone else does. It's pure human nature and greed.

tasha7891 · #8 01-01-2006, 03:24 PM

Who knows, im a victim of plastic - or should i say a 'user' (Hi, my names natasha and Im addicted to plastic).
Well, i got my plastic to get rid of other debt, fighting fire with fire....being young, im stupid and now atleast ive learnt my lesson. Ive also been ripped off so many times by my bank and employees that it has set me back a lot. I wont go into details but thats another reason why ive had to borrow. Oh well, in a year, after hard work, i will have paid back all my debt and have vowed to save or layby anything i want to purchase - thats the problem with my/our generation - too hasty, too impatient. So was I and now i had to experience the pain to learn. but im young so atleast i know im going to have a healthy bank account in the future because of my experience. :-)

Terrywoodenpic · #9 01-01-2006, 03:38 PM

Quote:

Originally Posted by beckysoup61

It's sad how so many people are going for the material possensions that they think they need, and then get themselves into bankruptcy and then do it all over again. By the way, how many times can you declare bankruptcy?

only once.
a bankrupt can not borrow money or goods
or have a mortgage.
can not even have a debit or credit card
Cant be a director or partner in a company
nor control a businesss in any way.

They must also pay off their debt and taxes, or a proportion set by the court,
before they cease to be a bankrupt.

It would be no fun being a bankrupt.
But you could live hand to mouth.

Terry________________________
Blessed are the gentle, they shall inherit the land