Britain's Streets of Debt

Enuff · 28-07-2006, 21:27

And there was me thinking I had money problems

Quote:

From the hidden story of the elderly and debt, to the explosion of online gambling which is causing financial misery to thousands and the story of the loan sharks and doorstep lenders, BBC One's Britain's Streets of Debt explores five stories of individual debt.

Personal debt in the UK is over Ã‚Â£1.1 trillion and is growing by Ã‚Â£1 million every four minutes.

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Tinky · 29-07-2006, 08:49

Those poor people, how on earth do they manage to sleep at night. Some have absolutely no chance of paying off their debts. Having this worry hanging round them constantly, not surprised some think of ending it all.

**Maggy J** · 29-07-2006, 12:31

It's easy to get into debt and takes a lot of 'bottom' and character to avoid getting into debt.Once the spiral starts it's very hard to get off.

It used to be easy when everyone wasn't offering you tick on everything and anything.No store cards when I was younger,no credit cards.If you couldn't afford it you saved for it or paid on the never,never(hire purchase).Woe betide anyone who lost their source of income and had one of them to pay off.I have to be very firm about saying no to store cards too..they really push them at you these days with all sorts of 'special discounts if you sign up.

The problem as I see it is that we have become a nation of gadget and technology worshippers.We can't say no to the latest must have gizmoe and therefore pay for it on credit which we pretend won't eventually have to be paid for...And believe me I have been down THAT road.I managed to sort myself out by cashing in a insurance policy and boy did that hurt...

These days I seldom resort to 'retail therapy'.I avoid the shops as much as possible and I try to think 'do I REALLY,REALLY,REALLY need this before buying anything.I dither for months about things like water filter jugs.

If I'm going shopping it's for something specific(like underwear or work clothes or to replace something vital like a kettle that's broken down and as soon as it's bought I'm away off home.

Which reminds me I must buy a new stove as my oven isn't working.

Shall have to wait until hubby has a new job.

johndillinger · 31-07-2006, 12:44

god
i blame the banks handing out loans left right and centre for people to buy houses,

brundles · 31-07-2006, 13:10

Unfortunately the current credit check system used by the financial organisations to try and determine if someone is already having problems won't actually tell them that information until it's far too late.

Not to mention that somethings don't show up at all (student and graduate loans for example) and other information might be missing. Remember that the credit file is built up of information voluntarily contributed by other companies.

Chris W · 31-07-2006, 13:11

Quote:

Originally Posted by johndillinger

god
i blame the banks handing out loans left right and centre for people to buy houses,

having one mortgage is not really an issue imo- better to pay a mortgage every month than rent- at least you get some return.

It is remortgages, and then the extra secured loans and credit cards etc that cause the problems imo.

King Of Fools · 31-07-2006, 14:48

Quote:

Originally Posted by Chris W

having one mortgage is not really an issue imo- better to pay a mortgage every month than rent- at least you get some return.

It depends. I know a lot of people who have interest-only mortgages, which can be far worse than paying rent as you are effectively renting your house from the bank but still have to pay all your own maintainance and repair bills!

TheDaddy · 05-08-2006, 15:45

Apparently someone is declared bankrupt every 3 minutes

Taf · 05-08-2006, 16:56

Quote:

Originally Posted by TheDaddy

Apparently someone is declared bankrupt every 3 minutes

...and he's getting very angry

**Graham M** · 05-08-2006, 17:31

LoL this Someone is getting a lot of stick lately

TheNorm · 05-08-2006, 17:54

Quote:

Originally Posted by King Of Fools

It depends. I know a lot of people who have interest-only mortgages, which can be far worse than paying rent as you are effectively renting your house from the bank but still have to pay all your own maintainance and repair bills!

Well, yes, except that in the longer term (five years or more) you will benefit from the increased value of your property should you want to move. Also, if you stick around for the full 25 years, you end up sitting on a nice nest-egg. People paying rent don't have this sort of long-term security.

Barewolf · 05-08-2006, 17:57

I have to goto court before end of the month to go bankrupt, i have been 14K in debt for 3 years, unable to pay it back.

The law changed last year so it is so easy to go bankrupt now. Ã‚Â£325 and its wiped clean

TheNorm · 05-08-2006, 18:39

That must be tough, and a relief as well.

Chrysalis · 06-08-2006, 03:31

Blame the current credit check system.

It favours people who already have credit so once you get on the credit ladder its a fast track to high amounts of debt.

People who dont have credit generally fail credit checks, meaning the lage amount of credit is spread between thin amount of people. Well not thin but the ones who already have credit.

Mortgages are also to blame although they are cheaper then rent in many cases, a mortgage is a commitment that you cant just turn off should circumstances change, and if itnerest rates go up sorry when interest rates go up their will be huge problems.

Barewolf · 06-08-2006, 06:21

Quote:

Originally Posted by TheNorm

That must be tough, and a relief as well.

indeed, it is tough, luckily i have no assets for them to come down on me or i would be screwed, they cant take me to court as i have nothing to give them.

Just wished i done this sooner