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Debt bubble returns millions to days of 2008 crash


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https://www.theguardian.com/money/2017/jun/17/uk-debt-bubble-queens-speech-consumer-credit-loans-spending

 

Advisers call for action as growing numbers struggle with their bills

 

Charities and financial advisers are calling on the government to use the Queen’s speech to address the “bubble” of unmanageable debt that households are rapidly accumulating.

 

Unsecured consumer credit – including credit cards, car loans and payday loans – is this year expected to hit levels not seen since the 2008 financial crash.

 

There has been concern in the Bank of England that consumer spending is being underpinned by debt, amid comparisons to the run-up to the financial crash. In addition, figures published last week show inflation reached a four-year high in May, meaning shopping is getting increasingly expensive, further intensifying the squeeze on household budgets.

 

 

I noticed quite a few advertisements for 'no interest' loans taken over 4 years with companies such as PC World/Currys - B&Q and a Carpet store.

 

So, it looks like for companies to stay in business they need to sell - people cant afford to buy - so lets tie them up with MORE credit for 4 years !

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Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

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Yep and the car loans being agreed to keep cars being sold. The UK economy is mostly based on credit and the next bust might see more Banks permanently go out of business

We could do with some help from you.

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We could do with some help from you.

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Thanks Andyorch :)

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Uploading documents to CAG ** Instructions **

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2: Take back control of your finances - Debt Diaries

3: Feel Bullied by Creditors or Debt Collectors? Read Here

4: Staying Calm About Debt  Read Here

5: Forum rules - These have been updated - Please Read

BCOBS

1: How can BCOBS protect you from your Banks unfair treatment

2: Does your Bank play fair - You can force your Bank to play Fair with you

3: Banking Conduct of Business Regulations - The Hidden Rules

4: BCOBS and Unfair Treatment - Common Examples of Banks Behaving Badly

5: Fair Treatment for Credit Card Holders and Borrowers - COBS

Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

PLEASE DO NOT ASK ME TO GIVE ADVICE BY PM - IF YOU PROVIDE A LINK TO YOUR THREAD THEN I WILL BE HAPPY TO OFFER ADVICE THERE:D

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the real problem is how much of this money goes out of the UK economy. Most fo the payday loan co's and the gambling sites are based abroad so the money just disappears into thin air as far as our banking system is concerned. This is where capitalism lets evryone down, a lack of proper accountability and intervention by the regulatory authorities. In Italy and Greece, 2 economic basket cases if there ever were, dont allow such rash lending to individuals by such bodies

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Ericsbrother

 

You raise a good point. A number of payday lenders are American and don't have UK staff.

 

Another suspicion i have is that DCA's avoid paying UK tax on the debt profits they collect on, as the debts are held offshore.

We could do with some help from you.

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Charities and financial advisers are calling on the government to use the Queen’s speech to address the “bubble” of unmanageable debt that households are rapidly accumulating.

 

 

Was this situation mentioned in the Queen's speech ?

Have we helped you ...?         Please Donate button to the Consumer Action Group

Uploading documents to CAG ** Instructions **

Looking for a draft letter? Use the CAG Library

Dealing with Customer Service Departments? - read the CAG Guide first

1: Making a PPI claim ? - Q & A's and spreadsheets for single premium policy - HERE

2: Take back control of your finances - Debt Diaries

3: Feel Bullied by Creditors or Debt Collectors? Read Here

4: Staying Calm About Debt  Read Here

5: Forum rules - These have been updated - Please Read

BCOBS

1: How can BCOBS protect you from your Banks unfair treatment

2: Does your Bank play fair - You can force your Bank to play Fair with you

3: Banking Conduct of Business Regulations - The Hidden Rules

4: BCOBS and Unfair Treatment - Common Examples of Banks Behaving Badly

5: Fair Treatment for Credit Card Holders and Borrowers - COBS

Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

PLEASE DO NOT ASK ME TO GIVE ADVICE BY PM - IF YOU PROVIDE A LINK TO YOUR THREAD THEN I WILL BE HAPPY TO OFFER ADVICE THERE:D

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Was this situation mentioned in the Queen's speech ?

Don't think so, any action to curb lending so the rapacious Banksters can make profit would be resisted, after all look at all the DCA's that might go to the wall with no bad debt bought for pennies in the pound for them to chase. ( That would be good if they did go west however, no more Arrows, Lowell,et al)

We could do with some help from you.

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The bailiff: A 12th Century solution re-branded as Enforcement Agents for the 21st Century to seize and sell debtors goods as before Oh so Dickensian!

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My prediction is that there will be a bust before Brexit happens that totally derails Brexit from happening.

 

Just read what it going on in the economy. Second hand car values have started to sink and car finance rates are increasing, as banks looks to cover for potential losses. Credit card balances are on average at a record high, as is household debt. The Tories deliberately allowed banks to pump money into the economy and increase debts. Once the defaults start happening on a large scale those banks will be in trouble again.

We could do with some help from you.

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The demonisation of diesel, and the need to slap fuel duty on electricity used to charge EVs to make up for the loss of revenue from the tax on lower sales of diesel fuel will lead to public disorder before any crash,

We could do with some help from you.

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Have we helped you ...?         Please Donate button to the Consumer Action Group

If you want advice on your thread please PM me a link to your thread

The bailiff: A 12th Century solution re-branded as Enforcement Agents for the 21st Century to seize and sell debtors goods as before Oh so Dickensian!

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My prediction is that there will be a bust before Brexit happens that totally derails Brexit from happening.

 

Just read what it going on in the economy. Second hand car values have started to sink and car finance rates are increasing, as banks looks to cover for potential losses. Credit card balances are on average at a record high, as is household debt. The Tories deliberately allowed banks to pump money into the economy and increase debts. Once the defaults start happening on a large scale those banks will be in trouble again.

 

The demonisation of diesel, and the need to slap fuel duty on electricity used to charge EVs to make up for the loss of revenue from the tax on lower sales of diesel fuel will lead to public disorder before any crash,

 

So the future looks very bleak indeed ?

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Uploading documents to CAG ** Instructions **

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Dealing with Customer Service Departments? - read the CAG Guide first

1: Making a PPI claim ? - Q & A's and spreadsheets for single premium policy - HERE

2: Take back control of your finances - Debt Diaries

3: Feel Bullied by Creditors or Debt Collectors? Read Here

4: Staying Calm About Debt  Read Here

5: Forum rules - These have been updated - Please Read

BCOBS

1: How can BCOBS protect you from your Banks unfair treatment

2: Does your Bank play fair - You can force your Bank to play Fair with you

3: Banking Conduct of Business Regulations - The Hidden Rules

4: BCOBS and Unfair Treatment - Common Examples of Banks Behaving Badly

5: Fair Treatment for Credit Card Holders and Borrowers - COBS

Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

PLEASE DO NOT ASK ME TO GIVE ADVICE BY PM - IF YOU PROVIDE A LINK TO YOUR THREAD THEN I WILL BE HAPPY TO OFFER ADVICE THERE:D

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So the future looks very bleak indeed ?

 

If you noticed today, the Bank of England have ordered Banks to add billions to their contigency reserves or whatever they call them. This is so they can survive if there is an economic shock.

 

Vince Cable recently warned about an economic shock coming and he was right the last time.

 

I have read of people who follow stock markets and investments cashing in their shares, as they believe that now is the time to cash up, before the crash happens. And one person i know who supports Brexit thinks that the UK will be in poor state for years and he is the type who will make money during a ressession.

We could do with some help from you.

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Our economy relies on people being fed the myth that debt equals wealth. As long as they can borrow enough to buy the bigger house, fill it with goods they'll owe money on for years, drive a car they'll never own, then the 'haves' are happy. Consumerism is a wonderful thing.

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http://www.bbc.co.uk/news/business-40416976

 

Bank of England takes action over bad loans

 

Lenders, the committee said, are relying too heavily on borrowers keeping up payments as well as they have recently, and banks and other lenders have started lending to people with weaker credit records.

 

 

The lenders have to scrutinise the borrowers to ensure they could still afford their repayments if the Bank of England raised its official base rate by three percentage points.

 

But some lenders have been assuming they would not in fact pass on all of that increase in higher standard variable rates, thus allowing them to lend slightly more.

 

Mr Carney said these lenders were not "gaming the system" but instead appeared to have forgotten some of the lessons of the recent past.

 

Despite these concerns, Mr Carney stressed that the UK financial system was far stronger than at the time of the great banking crash in 2008-09.

 

He said that since then, UK households had reduced their levels of debt and that it was only in the past 18 months or so that personal lending and borrowing had accelerated again.

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Uploading documents to CAG ** Instructions **

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Dealing with Customer Service Departments? - read the CAG Guide first

1: Making a PPI claim ? - Q & A's and spreadsheets for single premium policy - HERE

2: Take back control of your finances - Debt Diaries

3: Feel Bullied by Creditors or Debt Collectors? Read Here

4: Staying Calm About Debt  Read Here

5: Forum rules - These have been updated - Please Read

BCOBS

1: How can BCOBS protect you from your Banks unfair treatment

2: Does your Bank play fair - You can force your Bank to play Fair with you

3: Banking Conduct of Business Regulations - The Hidden Rules

4: BCOBS and Unfair Treatment - Common Examples of Banks Behaving Badly

5: Fair Treatment for Credit Card Holders and Borrowers - COBS

Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

PLEASE DO NOT ASK ME TO GIVE ADVICE BY PM - IF YOU PROVIDE A LINK TO YOUR THREAD THEN I WILL BE HAPPY TO OFFER ADVICE THERE:D

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Banks are “forgetting the lessons” of the financial crisis, increasing the risk of reckless lending which could land them — and the wider economy — in trouble later, Mark Carney has warned.

 

Credit card lending is booming and the Bank of England fears that banks are becoming complacent, assuming the relatively good economic times will continue indefinitely.

 

As a result lenders are cutting down the amount of capital they put aside to keep them safe if those loans turn bad — something that could leave them in financial trouble if there is a recession and customers cannot pay back their debts.

 

 

Read more :- http://cag.tw/22tb

Have we helped you ...?         Please Donate button to the Consumer Action Group

Uploading documents to CAG ** Instructions **

Looking for a draft letter? Use the CAG Library

Dealing with Customer Service Departments? - read the CAG Guide first

1: Making a PPI claim ? - Q & A's and spreadsheets for single premium policy - HERE

2: Take back control of your finances - Debt Diaries

3: Feel Bullied by Creditors or Debt Collectors? Read Here

4: Staying Calm About Debt  Read Here

5: Forum rules - These have been updated - Please Read

BCOBS

1: How can BCOBS protect you from your Banks unfair treatment

2: Does your Bank play fair - You can force your Bank to play Fair with you

3: Banking Conduct of Business Regulations - The Hidden Rules

4: BCOBS and Unfair Treatment - Common Examples of Banks Behaving Badly

5: Fair Treatment for Credit Card Holders and Borrowers - COBS

Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

PLEASE DO NOT ASK ME TO GIVE ADVICE BY PM - IF YOU PROVIDE A LINK TO YOUR THREAD THEN I WILL BE HAPPY TO OFFER ADVICE THERE:D

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http://www.msn.com/en-gb/money/personalfinance/debt-time-bomb-ticks-as-three-quarters-of-households-forced-into-credit-to-make-ends-meet/ar-BBDtqie?li=AA54rU&item=personalization_enabled:false

 

 

Three quarters of households are forced to rely on credit to make ends meet a new survey reveals.

A third of households are worried about how much debt they owe, while almost half of people hadn’t a clue what rate of interest they are paying on their borrowing, according to research from Scottish Friendly.

 

This adds to fears of a debt time bomb ticking as Bank of England figures show the amount of credit we have taken out has soared 10.3% in the past year to hit £199.7billion - the highest amount since December 2008 during the credit crunch.

 

Debt experts are worried that people are overstretching themselves financially. The amount we owe shot up £1.7billion in the last month alone.

 

While interest rates are at rock bottom most people can cope with their borrowing and keep up repayments.

 

 

 

Citizens Advice says problems with poor affordability checks in the high cost credit market remain the key threat to borrowers.

 

Gillian Guy, Chief Executive of Citizens Advice, said: "We've helped people with over 30,000 high cost credit problems in the last year, including borrowers who've been given expensive rent to own or doorstep loan agreements despite having very little income.

 

 

So, it looks as though lenders are still not making the necessary affordability checks - or is this again, to those who are already struggling, loans are being given at extortionate interest rates !

 

With rumbles from the Bank of England that interest rates might rise.. I think CAG might be busy again in the very near future!

Have we helped you ...?         Please Donate button to the Consumer Action Group

Uploading documents to CAG ** Instructions **

Looking for a draft letter? Use the CAG Library

Dealing with Customer Service Departments? - read the CAG Guide first

1: Making a PPI claim ? - Q & A's and spreadsheets for single premium policy - HERE

2: Take back control of your finances - Debt Diaries

3: Feel Bullied by Creditors or Debt Collectors? Read Here

4: Staying Calm About Debt  Read Here

5: Forum rules - These have been updated - Please Read

BCOBS

1: How can BCOBS protect you from your Banks unfair treatment

2: Does your Bank play fair - You can force your Bank to play Fair with you

3: Banking Conduct of Business Regulations - The Hidden Rules

4: BCOBS and Unfair Treatment - Common Examples of Banks Behaving Badly

5: Fair Treatment for Credit Card Holders and Borrowers - COBS

Advice & opinions given by citizenb are personal, are not endorsed by Consumer Action Group or Bank Action Group, and are offered informally, without prejudice & without liability. Your decisions and actions are your own, and should you be in any doubt, you are advised to seek the opinion of a qualified professional.

PLEASE DO NOT ASK ME TO GIVE ADVICE BY PM - IF YOU PROVIDE A LINK TO YOUR THREAD THEN I WILL BE HAPPY TO OFFER ADVICE THERE:D

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