£1 Trillion Consumer debt!

[Zedmeister]

Good grief! Is this country now based on greed, self-interest and self-gratification? Are we so short sighted as to not see the problems of debt and credit before its too late?

<Link to bbc news>

Now before I charge off I admit to having 2 loans. 1 is a student loan, which to be honest I HAD to take out before committing to university. The second loan is a career development loan, taken out to cover the fees of a course I undertook. I am quite sure a few are in similar circumstances. There is a purpose to certain types of loans, such as the student loans mentioned. Mortgages are also needed judging from today’s house prices. Even paying for a car is quite a task.

What I can’t understand are those who go and take out dozens of those store cards, credit cards and loyalty cards and just go mad and rack up the debt. Is it greed? Is it an addiction? Or is it a cultural problem?

[nichomach]

Overdraft, car, one store card, mortgage. No credit card at all.

[MD]

I have spent the last 6 months paying off credit cards, I got to a high figure and realised it was just bad news, ok so I have no other debt but even this was enough to make me take hold, down to 20% of the debt now and working on it, I have three cards and two of them are empty the one with the remaining on is interest free till february next year.

It takes alot to get a grip but we all really need to.

1 trillion is just so damn stupid its not even funny.

m@

[Agent]

Im currently clean, but i wont be if i goto uni.

[Knoxville]

Currently not in debt, owe a few quid to my parents here and there but no credit cards, despite the temptation.

[GreenPiggy]

In debt to student loans company but almost have it offset in my ISA now so nearly clean

[Shogun]

Clean but that might be because im too young to have a debt Just wait till next year and uni though and all that should change pretty fast. I've always been told that you shouldn't buy what you can't afford right now and i will be sticking to it.

[Stewart]

Clean in terms of debt that I don't know how to handle. Owe a few quid on my credit card, but I know how and when I'll be paying it off. No 'problem' debts, wouldn't let that happen.

Anyway, most of that £1 trillion is because some poor sod purchased a IDE cable from PC World, instead of Ebuyer.

[Atomic]

Just a Car loan here. Pay my credit card off every few months when they want to start charging me.

A lot of people don't realise how much they are getting charged for their loans, and just se a CC as a way of buying things when the don't have the money.

[Bindibadgi]

By the end of next year i will owe £14k to the govt. from uni loans, but i hope to sod off abroad for 6+ years so i dont have to pay it back.
I also owe ~£100 on my CC, but its trivial and i have income atm (well till summer ends).
No mortgage yet, no car, no wife...

[DaBeeeenster]

This is a SERIOUS problem in the UK, IMHO. It is the asian countries that are financing all our loans. At some point in the future, if this sort of debt continues as it has done, I'd say we are in for a BIG depression. Eventually the asian financiers are going to stop lending us money and start calling in their debts. As it stands, I'd say the majority of households in the UK are fairly stretched...

Be interested to hear what spikegifted has to say about it? You around mate?

[TeePee]

I'm clean, but only because I'm saving for a mortgage deposit.

[megah0]

student loan and a small amount on my CC.

I know people who went crazy at uni and maxed out half a dozen credit cards, they didn't realise that its not free money.

[Zedmeister]

I know people who went crazy at uni and maxed out half a dozen credit cards, they didn't realise that its not free money.

Strange this. People just go on spending sprees and either don't realise or don't know what the consequences are. It seems to be a cross between a lack of education and a lack of honesty from the loan sharks.

This is a SERIOUS problem in the UK, IMHO. ... At some point in the future, if this sort of debt continues as it has done, I'd say we are in for a BIG depression. ... As it stands, I'd say the majority of households in the UK are fairly stretched...

Defiantly agree with you on this one mate, if things go on as they are then we are in deep trouble. Due to low interest rates people just keep borrowing, but if we ever see a return to the boom and bust of the 80's and early 90's housing market then we'll probably see peoples homes and possessions being repossessed by the score to settle the outrageous debts.

[Richie]

Car loan and a credit card.

Not being funny but I personally dont see these 2 as "debts" as I have never missed a payement on them and, if the worst DID happen, the car is worth more than the loan even at a quick sale price so the car loan is just a "formality" so to speak.

CC is different but its not a lot


Debts - I class REAL debt as when ppl cant afford the repayments.

[DaBeeeenster]

A debt is a debt. You owe someone some money. Probably a UK bank, right? More than likely they owe it to someone else. The money you get in your hand has probably come from Japan. Anyway, the point is, it's not necessarily whether YOU can pay off the debt, it's whether the other people up the chain can. If the guy in Japan decides he wants his money back, and your bank are short of a few quid...

Then you go to the ATM to get some money out on a friday night and...