British economy

Tsalagi

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#1
I've been watching a show on Netflix called "You Pay or We'll Take it Away". It's really depressing, with High Court Enforcement evicting folks left and right (because they haven't paid rent for a year, or businesses that are months behind and facing bankruptcy).
The show starts off with scary stats of the great rise in defaults, saying the average debt in Britain is about 6,000 pounds.
Is it really that bad?
 

Vinnie

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Oct 30, 2006
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#2
Define average debt?
I have a mortgage that is CONSIDERABLY more than £6000 but no other debt to speak of. Since I need somewhere to live and the payments of the secured loan is much less than the payments of rent that I would be making to live here, is this a "debt" or an investment?
secondly, there has been a rise in defaults but that has actually been the law moving more to the simpler bankruptcy processes you see in the US than an increase in debt itself (although there has been an increase in that).
Some companies are "walking zombies" carrying so much debt they cannot get out from under it and now it is worth their whiule closing and starting again while previously they'd have soldiered on.
 

stevent222

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#3
I went to a convertion chart and found out that £6000 sterling equals $8,039.07 U.S. dollars. And I am a man of low means although when married have been in debt for well over $300,000.00 and know that if I don't some how win a lotery I'll never be able to pay that off to the government and other loan companies.
 

Bamber

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#4
From what I have read you are quoting a figure excluding mortgage. Much (about 85%) of this can be blamed on the "buy now, pay later" culture, roughly £4000 consumer credit and £1200 credit card debt.

I was brought up with a background of "if you can't afford it, save for it", but the majority don't seem to have learned that and have been sucked in to the "instant gratification" trap set up by lenders. This is in general not a poverty of underpayment but a poverty of overspending.