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Debt Facts and Figures - Compiled 3rd October 2005

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    Debt Facts and Figures - Compiled 3rd October 2005

    http://www.creditaction.org.uk/debtstats.htm


    cripes....

    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 August 2005 the total UK personal debt was £1,122bn. The growth rate remains strong at 10.5% 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 August 2005 was £931.8bn.

    Total consumer credit lending to individuals in August 2005 was £190.5bn.



    Total lending in August 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 £7,713 (excluding mortgages) and £45,437 including mortgages.

    Average owed by every man, woman and child in the UK is approximately £18,757 (including mortgages).


    Average consumer borrowing via credit cards, motor and retail finance deals, overdrafts and unsecured personal loans has risen to £4,087 per average UK adult at the end of August 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 October 2005):



    Total UK personal debt has increased by £513bn (84%) from £609bn to £1,122bn
    Total secured lending on homes has increased by £438bn (89%) from £494bn to £932bn
    Total consumer credit lending has increased by £76bn (66%) from £115bn to £191bn
    Total credit card debt has increased by £24.2bn (76%) from £32bn to £56.2bn
    Base Rate has decreased by 1.5% from 5.5% to its current rate of 4.5%
    Average house price has increased by £89,867 (93%) from £96,340 to £186,207
    Average earnings have increased by £5,077 (28.5%) from £17,803 to £22,880


    Milan.

    #2
    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.
    But as The Economist said a few weeks ago, as this is secured against approximately £3 trillion worth of assets this is not a macroeconomic problem. Sure, Mondeo man might have an issue when his property is seized to repay his debt, but the big picture can accomodate it.

    Of course, if a recession wipes out large chunks of the value of those assets...

    Comment


      #3
      Average household debt in the UK is approximately £7,713 (excluding mortgages) and £45,437 including mortgages.
      Is that all? Is it a lot?
      Maybe it is, but we'd have to compare it to other countries etc... usual stuff about figures not meaning very much unless you put them in context...
      Chico, what time is it?

      Comment


        #4
        Originally posted by Lucifer Box
        But as The Economist said a few weeks ago, as this is secured against approximately £3 trillion worth of assets this is not a macroeconomic problem.
        It is really - it affects the pensions timebomb, which is a massive macroeconomic problem coming over the horizon.

        People are already not saving enough for retirement, but instead of saving more, people appear to be doing the opposite and getting into more debt. This can only make the pensions issue worse, and for millions, a lot worse.

        Comment


          #5
          Fewer than one in 10 people over the age of 50 will suffer an impoverished old age, the Institute for Fiscal Studies (IFS) has said in a report.

          The research body looked at the likely retirement income of people over 50 but below the state pension age.

          It took into account state and private pensions as well as money tied up in property and any likely inheritance.

          The group concluded 9.8% of people would have an inadequate income in retirement.
          Mind you, I expect this is on the assumption that they all sell their properties and sub-let a room in AtW's house.

          Comment


            #6
            Originally posted by Rebecca Loos
            Is that all? Is it a lot?
            Maybe it is, but we'd have to compare it to other countries etc... usual stuff about figures not meaning very much unless you put them in context...
            45K is nearly twice the average annual wage in the UK. But that isn't the point.

            Our economy is kept in balance by people going further into debt to buy stuff. You don't need to compare the UK with other countries to know that this is an unsustainable situation - it is like eating yourself to stay alive, or using wood from the hull of your boat to keep repairing the deck.

            Comment


              #7
              Clearly the only answer is to increase taxes and introduce some new laws. It's only fair you know.

              Comment


                #8
                Originally posted by Lucifer Box
                Mind you, I expect this is on the assumption that they all sell their properties and sub-let a room in AtW's house.
                I wouldn't be surprised. If I sold my home at last year's prices I'd be most of the way to a decent retirement fund, but (a) I like my home, and (b) where would I live?

                Without it, I've got a long way to go.

                Comment


                  #9
                  Originally posted by wendigo100
                  I wouldn't be surprised. If I sold my home at last year's prices I'd be most of the way to a decent retirement fund, but (a) I like my home, and (b) where would I live?

                  Without it, I've got a long way to go.
                  Well this has got me to thinking. If the valuation of a similar house to mine over the road is correct at £465k (I think this is a bit on the high side, so let's say £430k to be safe), I could sell that, stick the money in the bank, and earn ca. £21.5k pa in interest. There is no mortgage to pay off so I would then be free to sub-let a room in AtW's house and pocket the change.

                  Ker-ching.

                  Comment


                    #10
                    Lads,

                    you need to take a leaf out of mine and MF's book and focus on setting up
                    a plan b.

                    Milan.

                    Comment

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