How many people in the UK are in debt?

[pablito-uk]

I ask this question because my parents are always tutting when I say I am travelling abroad; to see friends or simply to see other places on this planet of ours. I am self-employed and I work enough simply to pay the rent on my tiny bedsit, feed and clothe myself, and of course travel.
I have never been in debt, and I always keep some money in the bank 'just-in-case'.
I would like to explain to my parents that in this country I am probably one of the few who doesn't live on credit.
Cheers for your help. I like percentages and statistics so sock it to me!

[Loosehead]

You are indeed a rarity in today's have it now society. You are not alone however. For the record my only debt is a mortgage which I think is necessary because you cannot save fast enough to buy a house so gearing in this case is necessary. I am amazed at the things people will get themsleves into debt for, holidays? new sofa!?? car? I suppose I just hate paying interest so I use a system of "reverse loans" ie what monthly payment can I afford? what do I want to buy? Save the former until you have enough to buy the latter, genius!

Any way congratulations on not being in debt I don't know the stats but you are indeed rare. Do your parents have a lot of debt? the reason I ask is because my parents where always up to there eyeballs in debt collectors, CCJ's, bailiffs etc so I think that made me like I am.

[kempie]

This may be of some use to you.

[pablito-uk]

Thank you to both of you.
I'm encouraged that I am not the only one living the way I do, but when I read the linked page (well worth a look) it nearly scared me to death!
How do people survive in today's society? I'm sure there are other pages elsewhere on this website or the web to answer that question so we won't get into that now...
Thanks again for your help. And I guess if you are desperate and in debt and you happened across this page, best of luck. There are good people out there to help you if you look carefully.

[THECORBYLOON]

I have never been in debt but I believe that as a nation we owe �1,000,000,000,000 in debt (or we did a couple of months ago, so no doubt it's more now.) There are many who think nothing of buying on credit but I never have, it's ma money so why give more than I need, to a company that has millions already?

[kempie]

'We' passed �1 trillion over 15 months ago and hit �1.1 trillion 4 months ago.

Luckily personal debt exclusive of mortgages is a manageable �191 billion.

[THECORBYLOON]

kempie judging by the size of ma neighbour's plasma tv, that increase in debt is down to him......

[kempie]

...but surely that saves you trekking to Cineworld.

[THECORBYLOON]

It would do if it weren't for the price of his seats.....

[pablito-uk]

Ah Kempie, I must've missed that part. If personal debt exclusive of mortgages is a only 'manageable' �191 billion we can sort that out in a flash... hold on, I'll get my wallet...

...or we could make that bloke sell his plasma TV. What do you think?

Cheers for the posts. It's cheering up my days & making me feel alot happier!

[WoWo]

Thing is people have been borrowing against the value of their property, rather than this being a good situation people are now paying for a car which will be worthless in 10 years time for 25 years.

[pablito-uk]

Good point WoWo... I hadn't even thought of that.

[Otrere]

I have a mortgage, credit card and overdraft. So I am in debt. Shame on me. Good on you being in such a positive credit situation. Wish I had your willpower.

[madein1978]

All I can say to the question posed is fair play to you, you obviously don't subscribe to this 'I want it and I want it now' culture, the idea of waiting for something and saving up for it might be an old fashioned notion but it works. why hock yourself up in debt for a car which will be in need for replacement when you've paid it off, just to be seen with the latest reg, or a new house which has quality control problems, its silly. I couldn't sleep at night if I thought I owed something like 30 or 40,000 pounds and no means of paying it off, some people don't care though and I just don't understand them.

[tellboy]

I think that everyone is supposed to owe about �8000 as my bit is only about �300 on credit card I guess some people can not sleep at nights.

[loupea24]

I am 24 and roughly �25,000 in debt, i dont know quite how i got in so much debt, but i do know i havent really anything to show for it, no house or car, my partner who is 29 is in about the same amount of debt but he has part of it because of his car and he has some tied up in his house.

[alexjlight]

almost everyone!

[mash]

My brother bought an �8000 kitchen for his first house after just three years of being there. He added this to his morgage so will pay something in the region of �23000 for it. He moved 2 years later! Debt for some is due to poor wages, however for most people it is often driven by greed or impatience. We live in a society driven by materialism and an expectation to 'keep up with the jones's'. Drive round any new housing estate and look at the cars people now have, necessity? NO because next door have one (but mine's better)!

[twopennorth]

My mother tutted at me buying a new toilet seat - couldn't I have just mended the old one? Apparently I was being "extravagant".

If you were born into a poor family in the war you might well think like her, especially if you are not very flexible in your thinking. Fine, but I refuse to take criticism off someone who hasn't organised the payment of a family bill since the early 60s.

I can understand disliking waste, and feeling critical of people who live beyond their means, but it doesn't sound like that is anything to do with you. If you can afford to pay for your holiday, what is the problem?

As for the number of people in debt - that seems hard to assess - wouldn't you have to balance debts against assets? Add property into the equation and it gets even more complicated.

I'm sure thought that the statistics could be frightening - why else would there be so many loan adverts on the television? The cost of property doesn't help - something older people are unlikely to have had to face.

The real problem in the U.K is not spending on credit cards and taking the odd holiday - it is inadequate pensions, the problems of which cannot be held entirely against the individual. This is an issue which pensioners such as my mother have not had to face - but we will have to in the future.