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More go to the wall as credit crunch begins to bite
THE credit crunch is
claiming ever more
Hampshire residents,
with the numbers of
people declaring
themselves bankrupt
in the county rising
by a quarter.
The latest statistics show a
25 per cent increase in people
petitioning for their own
bankruptcy in the county, as
opposed to being forced into
bankruptcy by a creditor,
from 289 cases in the fourth
quarter of 2007 to 360 cases in
the first quarter of 2008.
The increase in
Southampton was slightly
lower than the rest of the
county with a rise of 15 per
cent, from 123 in the fourth
quarter of 2007 to 142 in the
first quarter of 2008.
Nationally, the three
months to March 31 saw an
increase of 11 per cent in the
number of people making
themselves bankrupt, according
to new figures from the
Department of Justice.
The figures reveal that
13,275 people successfully
petitioned the court to bankrupt
themselves and 8,805
agreed an IVA in the quarter
January to March 2008.
Mark Sands, director of
personal insolvency at
accountants KPMG's South
Coast office, said: "People
carry on digging a hole without
realising they're in too
deep.
"Typically they are £50,000
in debt. It starts with a few
small things - conservatory
or a holiday or whatever.
After that they're recycling
the debt with credit offers
with a view to saving money
but in reality they're just
building it up.
"Someone could end up
bankrupt with £50,000 of debt
but they've probably only
spent £20,000 of that, the rest
is interest and household
expenditure.
"Now, because of the credit
crunch, people can't borrow
and I think the increase in
the numbers declaring themselves
bankrupt is down to
people realising they've got a
problem earlier than they
otherwise would."
Christine Wall, debt advisor
for Southampton Citizen's
Advice Bureau, said: "We
have noticed that the numbers
have gone up quite considerably.
"People can't cope anymore
and they are trying to find a
solution. You pay what you
can afford but it doesn't do
anything to the debt and you
think you are going to be paying
it for 50 years, then going
bankruptcy is an attractive
proposition.
10:56am Tuesday 20th May 2008
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CommentPosted by: hulla, baloo on 11:12am Tue 20 May 08
Too many greedy people, spending more on the never, never,than their income allows.
Is far too easy to get credit and about time to ban credit cards, and to have a serious overhaul of the lending criteria and methods.
Too many greedy people, spending more on the never, never,than their income allows.
Is far too easy to get credit and about time to ban credit cards, and to have a serious overhaul of the lending criteria and methods.
Posted by: Fred on 11:13am Tue 20 May 08
The rates for bankruptcy have been rising year on year since Parliament made it easier to avoid your debts for those "small things" such as a "conservatory or a holiday or whatever".
When the recession does bite watch for 500% increases in bankruptcy rates.
The rates for bankruptcy have been rising year on year since Parliament made it easier to avoid your debts for those "small things" such as a "conservatory or a holiday or whatever".
When the recession does bite watch for 500% increases in bankruptcy rates.
Posted by: Doom Mongers on 11:40am Tue 20 May 08
Stop being talked into a recession by the media. If people are fearful and stop spending for no other reason than constant inaccurate financial reporting by sound byte journalists,the result is a knock on effect for the whole country i.e. higher interest rates,higher inflation etc...
Stop being talked into a recession by the media. If people are fearful and stop spending for no other reason than constant inaccurate financial reporting by sound byte journalists,the result is a knock on effect for the whole country i.e. higher interest rates,higher inflation etc...
Posted by: hmm on 11:43am Tue 20 May 08
[quote][bold]Doom Mongers[/bold] wrote:
Stop being talked into a recession by the media. If people are fearful and stop spending for no other reason than constant inaccurate financial reporting by sound byte journalists,the result is a knock on effect for the whole country i.e. higher interest rates,higher inflation etc...
[/quote] 100 % nail on the head
The media have a lot to answer for
Doom Mongers wrote:
Stop being talked into a recession by the media. If people are fearful and stop spending for no other reason than constant inaccurate financial reporting by sound byte journalists,the result is a knock on effect for the whole country i.e. higher interest rates,higher inflation etc...
100 % nail on the head
The media have a lot to answer for
Posted by: Clark Kent, Metropolis on 11:44am Tue 20 May 08
[quote][bold]Doom Mongers[/bold] wrote:
Stop being talked into a recession by the media. If people are fearful and stop spending for no other reason than constant inaccurate financial reporting by sound byte journalists,the result is a knock on effect for the whole country i.e. higher interest rates,higher inflation etc... [/quote] So journos are immune to higher interest rates and inflation are they?
Perhaps they are just reporting what is happening...
Doom Mongers wrote:
Stop being talked into a recession by the media. If people are fearful and stop spending for no other reason than constant inaccurate financial reporting by sound byte journalists,the result is a knock on effect for the whole country i.e. higher interest rates,higher inflation etc...
So journos are immune to higher interest rates and inflation are they?
Perhaps they are just reporting what is happening...
Posted by: Gilmore, Shirley, Southampton on 12:17pm Tue 20 May 08
People shouldn't stop [italic]spending[/italic] , but it seems more and more people need to think about how much they're [italic]borrowing[/italic] . Does nobody have cash in the bank anymore? Personally I only spend it if I know I have it, result = zero debt. Admittedly, I don't have a house, pension, savings, car. In fact all I have is a computer and super-fast internet connection so I can spend all day trolling the Echo website ;)
But seriously, journos need to stop sensationalising and panic mongering, lending companies need to stop encouraging the poor and weak to borrow more and more money and the government needs to revise how debt agencies operate.
People shouldn't stop
spending , but it seems more and more people need to think about how much they're
borrowing . Does nobody have cash in the bank anymore? Personally I only spend it if I know I have it, result = zero debt. Admittedly, I don't have a house, pension, savings, car. In fact all I have is a computer and super-fast internet connection so I can spend all day trolling the Echo website ;)
But seriously, journos need to stop sensationalising and panic mongering, lending companies need to stop encouraging the poor and weak to borrow more and more money and the government needs to revise how debt agencies operate.
Posted by: John B, Eastleigh on 1:28pm Tue 20 May 08
[quote][bold]Clark Kent[/bold] wrote:
[quote][bold]Doom Mongers[/bold] wrote: Stop being talked into a recession by the media. If people are fearful and stop spending for no other reason than constant inaccurate financial reporting by sound byte journalists,the result is a knock on effect for the whole country i.e. higher interest rates,higher inflation etc... [/quote] So journos are immune to higher interest rates and inflation are they? Perhaps they are just reporting what is happening...[/quote] The housing market is stagnant at the moment - not because of lack of credit - but because the media are predicting a fall in prices - who wants to buy when the press constantly say prices will go down.
The market is reacting to what the press report so yes, it is (partly) their fault.
Clark Kent wrote:
Doom Mongers wrote: Stop being talked into a recession by the media. If people are fearful and stop spending for no other reason than constant inaccurate financial reporting by sound byte journalists,the result is a knock on effect for the whole country i.e. higher interest rates,higher inflation etc...
So journos are immune to higher interest rates and inflation are they? Perhaps they are just reporting what is happening...
The housing market is stagnant at the moment - not because of lack of credit - but because the media are predicting a fall in prices - who wants to buy when the press constantly say prices will go down.
The market is reacting to what the press report so yes, it is (partly) their fault.
Posted by: REBECCA,PORTWOOD, southampton on 2:27pm Tue 20 May 08
There are lots of people in debt but we don't all go bankrupt some of us are even on low incomes just carrying on repaying the debt as we are the ones that have over spent. I WOULD IMAGINE US TAX PAYERS WILL PAY FOR THE ONES THAT TAKE THE OPT OUT OPTION BUT WHY SHOULD WE!!!!!
There are lots of people in debt but we don't all go bankrupt some of us are even on low incomes just carrying on repaying the debt as we are the ones that have over spent. I WOULD IMAGINE US TAX PAYERS WILL PAY FOR THE ONES THAT TAKE THE OPT OUT OPTION BUT WHY SHOULD WE!!!!!
Posted by: lowe and behold, st marys hotseat on 3:03pm Tue 20 May 08
The majority of people are now doubt living in council flats cant afford to re pay the catalogue money back. Dole cheats credit cheats
The majority of people are now doubt living in council flats cant afford to re pay the catalogue money back. Dole cheats credit cheats
Posted by: We're all doomed!!!!!!!!!!!!, Glasshalfemptyland on 3:35pm Tue 20 May 08
[quote][bold]lowe and behold[/bold] wrote:
The majority of people are now doubt living in council flats cant afford to re pay the catalogue money back. Dole cheats credit cheats [/quote] If the scaremongering is to be believed, it is the middle class "keep up with the Jones" bigger house better car types which are destined to struggle.
I don't think that too many bedsit/council flat/council houses will be repossesed!
lowe and behold wrote:
The majority of people are now doubt living in council flats cant afford to re pay the catalogue money back. Dole cheats credit cheats
If the scaremongering is to be believed, it is the middle class "keep up with the Jones" bigger house better car types which are destined to struggle.
I don't think that too many bedsit/council flat/council houses will be repossesed!
Posted by: lowe and behold, st marys hotseat on 3:53pm Tue 20 May 08
[quote][bold]We're all doomed!!!!!!!!!!!![/bold] wrote:
[quote][bold]lowe and behold[/bold] wrote: The majority of people are now doubt living in council flats cant afford to re pay the catalogue money back. Dole cheats credit cheats [/quote] If the scaremongering is to be believed, it is the middle class "keep up with the Jones" bigger house better car types which are destined to struggle. I don't think that too many bedsit/council flat/council houses will be repossesed![/quote] yes these low life are to blame.
ps i dont suffer from the above my home is paid for so are my cars and money in the bank life is such a struggle. watch out repo man is comeing for you dole cheats
We're all doomed!!!!!!!!!!!! wrote:
lowe and behold wrote: The majority of people are now doubt living in council flats cant afford to re pay the catalogue money back. Dole cheats credit cheats
If the scaremongering is to be believed, it is the middle class "keep up with the Jones" bigger house better car types which are destined to struggle. I don't think that too many bedsit/council flat/council houses will be repossesed!
yes these low life are to blame.
ps i dont suffer from the above my home is paid for so are my cars and money in the bank life is such a struggle. watch out repo man is comeing for you dole cheats
Posted by: Ron the Pole, Petersfield on 4:14pm Tue 20 May 08
Your country used to be cheap but not any more.I
am going home to Poland.
Your country used to be cheap but not any more.I
am going home to Poland.
Posted by: Banker on 6:47pm Tue 20 May 08
[quote][bold]Clark Kent[/bold] wrote:
[quote][bold]Doom Mongers[/bold] wrote:
Stop being talked into a recession by the media. If people are fearful and stop spending for no other reason than constant inaccurate financial reporting by sound byte journalists,the result is a knock on effect for the whole country i.e. higher interest rates,higher inflation etc... [/quote] So journos are immune to higher interest rates and inflation are they?
Perhaps they are just reporting what is happening...[/quote] Perhaps. But, actually, not. Believe the media, and apparently it's virtually impossible to get a mortgage now unless you've got a huge deposit. Not in the least bit true. 5% deposit will still get you a pretty decent mortgage. Doom Mongers and his cohorts above are spot-on.
What does bankruptcy have to do with the credit crunch anyway? If inability to obtain credit affects your ability to live day-to-day, bankrupcy was only round the corner anyway
Clark Kent wrote:
Doom Mongers wrote:
Stop being talked into a recession by the media. If people are fearful and stop spending for no other reason than constant inaccurate financial reporting by sound byte journalists,the result is a knock on effect for the whole country i.e. higher interest rates,higher inflation etc...
So journos are immune to higher interest rates and inflation are they?
Perhaps they are just reporting what is happening...
Perhaps. But, actually, not. Believe the media, and apparently it's virtually impossible to get a mortgage now unless you've got a huge deposit. Not in the least bit true. 5% deposit will still get you a pretty decent mortgage. Doom Mongers and his cohorts above are spot-on.
What does bankruptcy have to do with the credit crunch anyway? If inability to obtain credit affects your ability to live day-to-day, bankrupcy was only round the corner anyway
Posted by: jason bourne, can't say on 7:51am Wed 21 May 08
[quote][bold]Ron the Pole[/bold] wrote:
Your country used to be cheap but not any more.I am going home to Poland.[/quote] make sure you fill your car up with all your freinds
Ron the Pole wrote:
Your country used to be cheap but not any more.I am going home to Poland.
make sure you fill your car up with all your freinds
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