Apparently, the national debt means that each household owes between 65 and 70k. That's my new bike down the pan I refuse to take on any more debt!
I’m surprised it’s not more to be honest. Most of the people I seem to know that have a mortgage, have an enormous one. I thought mine was big (woheyy) until I started speaking to others. between say 350k and 900k mortgages on average seems to be the norm. And that’s before toys and credit cards, loans etc. The only monthly payments I have these days is my van, mortgage and bike (which don’t amount to a huge amount tbh as I went in to the mortgage deposit heavy. Which to some will be a lot of money and to some not a lot, but my outgoings used to be relatively horrendous. I had a life admin tidy over the last year or two once I got the divorce out of the way. Much much happier for it. disclaimer: I generally only use finance because it makes sense. I.E zero % etc. oh and stay away from social media. Best thing I’ve done in a LONG time.
When I paid off my mortgage I refused to buy anything for which I didn't have the available cash to buy. This makes me very happy.
I lived my whole life avoiding debt, something that my father taught me. A mortgage was essential at times, but never owned a credit card, never bought a bike or car without having saved the full purchase price first. In the long run I have saved thousands on interest payments, and still have 2 new big BMWs and two Ducatis in the garage.
That statistic in isolation, gives a very skewed picture. For it to be meaningful, I would want to understand the affordability of that household debt before wringing my hands and weeping. Barclaycard are currently on the receiving end of some very negative press in the gutter financial press (Money Mail) at the moment, having arbitrarily reducing 100,000’s of their customers credit card limits, often from £1000’s to £100’s. Their (vacuous) reason being peoples’ financial stability due to the pandemic (without any financial health checks) and as a back up argument, the customer hasn’t spend anywhere near their limit over the last 2 years so don’t need it. Speculation is people paying off credit card debt, which reduces the card issuer’s profits and that Barclaycard in particular, have been lending irresponsibly and it’s going to come back and bite them, hard. The next miss selling scandal (after vehicle PCP) will be the ‘buy now, pay later’ shysters like Klarna and Splitit. The only debt I have currently have is the £5.23 HMRC tell me I owe them for the 20/21 tax year. Andy
I now have my French residents card. The UK still tax me, I have no choice in that, but the lack of money that they will have to spend on roads, policing, NHS etc, has no effect on me at all.
Isn’t this related to national debt from covid meaning it’s the equivalent of every household have 60-70k?
They have a banking obligation now to reduce or check if it needs reducing if not used. We can’t have it all ways. Mine was reduced from 18k to under 10k 2 years ago as I never use it to anywhere near its limit.
And? Everything seems to work fine here. There are numbers and then there is experience of living in many places. I am sure you are aware that anyone can make statistics read anything that they want to prove a point. I am very happy having four motorbikes with no road tax nor MOTs and a car with no road tax either, the MOT equivalent is due when it is 4 years old. My property tax (similar to council tax) has gone up though, it is now around €520 a year for a house on nearly 4 acres.
I love a righteous thread. I’m ok as I can save so no one should have debt From the comfort of gilt edged pensions and equity built because people DO over extend to pay ridiculous prices for houses.
