Goverment, Corporate & Private Debt Going Up And Up, When Will It Blow?

[Truthteller88]

Are you seeing your debts increase or your family's, friends, neighbours, etc?

[Buenchico]

Given that many regular member of this site are of an age where they've managed to pay the mortgage on their property off, I suspect that there will be plenty of people here who have far lower levels of debt than they had in years gone by.

Corporate debt NEEDS to be high. It's a sign of a healthy economy when banks are prepared to lend to businesses so that they develop their businesses and employ more people. A business which doesn't owe money is probably a stagnant one.

[cassa333]

No

[cassa333]

Although to be fare my ex-tenant owes over £7,500 in rent. But that's just because she spends too much and for her rent was not worth paying.

[ummmm]

I don't know what debts people have.

We use a credit card for larger purchases because of the extra insurance you get with it. It's a 0% card and doesn't get used again until the previous purchases have been paid off.

[Peter Pedant]

Hi Cassa
if you have that amount owing and you have your CCJ I would send in the sheriffs no agonising over storage charges ....

debt in Europe - mainly born by the Brits I think
80% of card debt is on english cards
so Brexit will be good for everyone if you think debt is necessarily bad

[Peter Pedant]

// I dont know what debts people have//

oh I do - average £13 000 per household

http://www.bbc.co.uk/news/business-38534238

not counting mortgages ( =secured debt)

[albaqwerty]

an average is £13,000?!!

dear lawd, I'm very glad I'm not average.

[ummmm]

Besides what's left on our mortgage (3 years left) we owe 1k on a credit card. I don't consider it a debt though as we could pay it today if we wanted.

[Old_Geezer]

Finding it impossible to recall a time I was anywhere near that amount of debt (exc. mortgage). If that's truly an average I think it must indicate how society has shifted to a, "Must have it now", one. One can imagine a small percentage in financial trouble getting into that situation, but not the average citizen.

[woofgang]

How would we know the detail about any private debt except our own?

[ummmm]

Exactly, Woof, I've never in my life asked about someones debt.

[Old_Geezer]

Lenders know. ONS get the data. From there one divides by the population for averages. But not specifics.

[ummmm]

But Truthteller is asking about our family, friends, neighbours...how would anyone know?

[youngmafbog]

//average £13 000 per household //

As ever that figure cannot be taken on face value. It does include student loans, without student loans the figure drops to more than half that. Much of that will be take account in 0% interest loans on furniture, cars and TV's etc.

To understand any real problem the figures need to be broken down.

[youngmafbog]

OG, whilst I am all with you on the "must have it now" attitude surely 0% interest is no different to saving up for it? And at present due to low interest rates more companies are offering this.

[ummmm]

Young...No different imo and credit cards give you extra protection.

I only applied for a credit card because our holiday last year, although fine for us, the company went bust 2 weeks after we returned. Had I picked different dates we would have lost our money and had no holiday.

[ummmm]

btw...I'm not allowed access to the credit card :-D

[pixie374]

I've never had a credit card, or debt, except for a small mortgage. Would rather save up.

[ummmm]

We've always been the same, Pixie, but they are handy for extra protection. Not good for people who are crap with money though.

[youngmafbog]

It's actually a good idea to have a credit card, it increases your credit rating.

I have an ASDA money card, get cash back on it (both in ASDA and others). Every month I simply repay the full amount same as if I bought it with cash. And as ummm points out CC give you extra protection (although be careful of using them via paypal etc as your protection is not quite the same).