I heard this figure this morning and was rather surprised – what are people using/wearing out that they haven’t finished ( started ? ) paying for ?

Average household income is £26,000 – average debt 50% of that – I wonder how people sleep at night knowing that they owe 6 months of work to financial institutions.

Shiny bikes innit.

Does that include cars?

does that include mortgages?

Does it include Brownie Points?

I’ve earned a shitload of them over the years but still unsure of how to actually redeem them.

Interesting.. surely that’s quite easy to achieve, and exceed, if you have 2 (or even 1) car(s) in the household. A couple good cars could easily set you back £13k, plus the associated running costs on top. That ignores mortgage, house bork & children.

Does that include Intense bikes?

It includes student debt which is at ridiculous levels these days.

Our household debt varies between zero and a couple of hundred quid on the credit cards that are on automatic payment at the end of each month. So some households must have a huge debt to compensate for those like us.

I NEED to buy a LOT of Jaffa cakes a month. Don’t judge me!

Does that include Intense bikes?

LOL

Consumer debt averages £13,000 per household

I heard this figure this morning and was rather surprised

Austerity, low wage economy + low interest rates innit

the ‘recovery’ since the crash is a sham

If that’s excluding the mortgage 😯

A couple good cars One shit car could easily set you back £13k,

Interesting.. surely that’s quite easy to achieve, and exceed, if you have 2 (or even 1) car(s) in the household. A couple good cars could easily set you back £13k, plus the associated running costs on top. That ignores mortgage, house bork & children.

It’s debt tho. Surely most people own their cars?

Does the original number include mortgage? If so I’m much worse, if not then I’m vastly better (zero).

from what i see its not always those you most expect to have the most debt.

i know some folk on seriously good wages that have frighteningly high debt levels.

Its come to a fore when one or both lost their jobs in the industry im in.

It’s debt tho. Surely most people own their cars?

even a sample on here where many folk are bangernomic central there is a high proportion of car renters (its still a debt)

I wonder how many households have zero debt. Cant be many these days.

Does this figure include Tesco Club Card points ?

The Debt pipeline looks ominous.

zero debt? Me. excluding around 10 000 on mortgages

Cool! YOLO

PCP bumps it up I reckon, people don’t regard those as debt.

does that include mortgages?

Not usually.

‘Consumer’ debt (like the consumer price index) is calculated without housing costs.

As others said, £13k is a hatchback on finance though. Not something I’d do, but I can see the appeal of never actually having to buy a car just (effectively) lease it and use the residual value after a few years to pay off the remainder of the debt. In which case if the repayment’s are manageable and income is secure I see no major problem.

Last month my ‘banger’ cost me a grand in tax insurance, mot, tyres and suspension bushes all at once. OK so fingers crossed it’ll be zero for the next 11, but it’s still makes a £200/month all inclusive payment seem appealing!

To be clear – that figure excludes mortgages, but includes Intense bikes and jaffa cakes.

So, what’s the average level of savings?

I wonder how many households have zero debt. Cant be many these days.

If you exclude our mortgage, we have no debt – not even credit cards. Can’t stand the idea of owning something that isn’t really mine, or paying interest when it isn’t absolutely necessary. Perhaps an old fashioned view these days…

I wonder how many households have zero debt. Cant be many these days.

We are, subject to the temporary spending on the credit cards for internet shopping which gets paid off automatically each month. Mortgage is paid, car is paid. We don’t buy stuff on hire purchase or credit schemes.

@Ewan – the figure is “Consumer debt” which usually doesn’t include mortgages.

if it includes things like cars on PCP it’s easy to see why it’s a high figure. Many folk driving around with such deals, self included, with PCP figs 2 or 3 times that.

All that coke isn’t going to snort itself. Then there’s the hookers…

It’s debt tho. Surely most people own their cars?

Nope, nope, [url=https://www.ft.com/content/d340ea28-5040-11e7-bfb8-997009366969?mhq5j=e2]nope [/url]and nope. It’s scary how many cars are in secured/unsecured debt. There’s also the ‘leasing’ debt on top of this in car ownership. 55 page thread and running on Pistonheads on this.

i know some folk on seriously good wages that have frighteningly high debt levels.

Agreed, I’ve got friends earning more than me, but they’ve over stretched the mortgage and finance expensive cars (and holidays) who are in huge debts. A recent friend had their brand new VW Touran reclaimed on failing payments just 4 months in. Keeping up with the Jonses, showing off their ‘success’ and the instant gratification economy.

A friend on Facebook rented a Lambo Huracan with the usual hashtags claiming to have worked hard for it. Turns out it’s a rental and cost £5k for the week, all on a loan.. 😯

We are, subject to the temporary spending on the credit cards for internet shopping which gets paid off automatically each month. Mortgage is paid, car is paid. We don’t buy stuff on hire purchase or credit schemes.

Pretty much the same in our house.

I have a ‘save it then spend’ mentality, she saves then get’s stuff on credit preferring to keep the cash in the bank on the basis we could pay off the credit if needed but can also use it for unforeseen costs too. Which makes sense, it’s easy to get good terms when your not in a hurry and means not having to use the CC at 20% to cover anything unexpected.

So, what’s the average level of savings?

-13K innit.

what are people using that they haven’t finished paying for ?

about that much on a professional loan for law school fees in our household. second only to the mortgage.

I’ve often thought that PCP/lease cars are the next mis-selling scandal.

I remember regularly seeing headlines of this nature in the years leading up to 2008 along with regular warnings that such high levels of personal/consumer debt just weren’t sustainable and there would have to be a major readjustment (i.e. a crash) to rebalance everything.

I think though that the figures being regularly quoted back then were more like £30k.

Graduate debt isn’t really debt it’s more like deferred tax (repayment only kicks in above a certain threshold, it’s progressive in its structure, it dies with if left unpaid etc – all of this makes it more like deferred tax than a debt) and probably should be removed from the calculations if what you want is to represent something meaningful about the sustainable position of personal debt.

Fancy northern trouser made out of animals init

cokie – Member
Interesting.. surely that’s quite easy to achieve, and exceed, if you have 2 (or even 1) car(s) in the household. A couple good cars could easily set you back £13k

That might get you one decent couple of year old family sized car, if you’ve got two of similar vintage that can easily double, if you like the more premium side of things, quadruple it for two.

[/quote]It’s debt tho. Surely most people own their cars?

I think you’ll be surprised

Surely most people own their cars?

I would guess the opposite. I only tend to own a car after the loan has finished but then typically buy a new one with another loan.

Not sure how many students have debt but most are going to have around £40k which will throw out the numbers. As most will not actually be paying it back or paying back a minimal amount it is not really the same as ‘normal’ debt though is it, i.e if I get a job that pays £20k per year I still have to pay my loans…

Ewan – Member 
It’s debt tho. Surely most people own their cars?

In the same way most “own” their home, but it’s all on debt/credit.

Most cars are bought on finance deals, loans and credit cards.

0% interest deals will still count as debt until paid off. Noting that people fail to make payments and then get hit with big fees and interest. Some car finance deals are HP where it’s regular payments then pay a lump early to own it, or otherwise keep regular payments and end up paying fair bit more than the original price, and a lot end up doing this.

It’s scary how many cars are in secured/unsecured debt.

There was an article in the Financial pages of the Guardian a few weeks back saying how the banks somewhat dubious attitude to handing out car loans and finance like confetti, without checking if anyone can actually afford the repayments, is storing up a sort of mini ‘sub-prime’ crisis