Personal debt dips for first time

Discussion in 'Current Affairs, News and Analysis' started by whitecity, Sep 1, 2009.

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  1. Sounds like good news, not so?

    Apparently not...

    "Policymakers", apparently, want the UK public to continue racking up personal debt. And that, in a nutshell, is HMG's solution to the economic woes: the general public is expected to go on a consumer spending spree and continue to live far beyond their means.
     
  2. Well, endless consumption is a fundamental part of how our society is made up. Demand has to come from somewhere to oil the wheels so that supply can be a profitable notion. So long as our politicians are too spineless to grasp the nettle and our population too lazy and short-sighted to see the inbuilt limitations, there isn't really much choice but to keep the hamster-wheel spinning.

    I doubt the drop in debt is down to any fundamental rethink on behalf of the Great British Public; it's purely down to a restriction in supply. If more money were to suddenly become available in the lending market tomorrow, we'd go straight back to spunking it up the wall on pointless shite again and the lessons of the past few years would be forgotten in an endorphine rush of 'lifestyle'.
     
  3. I wonder if the GBP is as bad as you make out? I take comfort from the report that it is mortgage debt that appears to have been paid down. In my circle of friends and acquaintances, at least, it is paying off the mortgage that has become important.

    The wider issue is that the money involved is being recycled into the Bank of England and it isn't reappearing, now or anytime soon. That will not help struggling retailers who might not survive until people decide it is safe enough to start spending again.

    Litotes
     
  4. Yes... I wish Baldrick Darling would shove some Fiscal Easment my way..... still skint.... "No Dole, No Super Tenants, No Super Tenants No Hope!" :p :? 8O


    'Save Cash.... Run behind a Taxi....!" Save more cash..... visit Mrs Hands Establishment Tonite...!" :wink:
     
  5. I would say that a lot of the population have decided to pay off their debts rather than purchasing anything new. There is money out there but the majority are being frugal due to the so called recession.
     
  6. "So called" thought it was a definite one
     
  7. Conspiracy by the city and gobment :wink:
     
  8. Never mind all of this, when do I get my tenner back?
     
  9. I'd certainly hope you're right, but my more misanthropic side tells me people are paying off their mortgage iot clear up their credit rating for the future, rather than because of some new-found aversion to being in debt. The proof either way will come if credit becomes as readily available as before: if banks are willing to lend but nobody's willing to borrow.

    I suspect we'd just see the same old habits being repeated.
     
  10. These things go in cycles... we will see the same mistakes again... its just a matter of time.

    If I had a tracker mortgage i'd be paying it off like billy-o, rates only go one way from here...
     
  11. I have paid off all of my debts inc credit card, bank loan etc. And a third off my mortgage, with more to be paid off it shortly. I never liked being in debt, but whilst money prices were low / reasonable I took advantage like many people. I am concerned about an interest rate rebound which is due, maybe next year and am taking appropriate action now. I guess I am lucky to be in a position to do so.
     
  12. This morning's news from Dixons (DSG) reveals a drop in sales of 14% over the last year. That's a lot of people not buying televisions, computers etc on credit - which contributes to the overall reduction in debt.

    I agree that everything goes in cycles; give it another 10 years and we'll all be wondering what all the fuss was about!

    Litotes