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British households repaid record amounts of debt racked up on credit cards and personal loans in April as consumers stayed away from the high street during lockdown.
Figures from the Bank of England show £7.4bn of consumer credit was repaid during the first full month of strict restrictions on business and social life, the largest net repayment since records began in 1993.
Reflecting a record plunge in retail spending in April as people stayed indoors, the Bank said £5bn in credit card debt was paid off in April, more than double the previous month and far more than the typical £300m paid back monthly by consumers.
However, outstanding debts on credit cards remain about £64bn. Experts also warned that while many households managed to repay their debts during lockdown, the hit to workers’ wages and rising job losses at the onset of the deepest recession in living memory would force others deep into the red.
Figures from the Bank of England show £7.4bn of consumer credit was repaid during the first full month of strict restrictions on business and social life, the largest net repayment since records began in 1993.
Reflecting a record plunge in retail spending in April as people stayed indoors, the Bank said £5bn in credit card debt was paid off in April, more than double the previous month and far more than the typical £300m paid back monthly by consumers.
However, outstanding debts on credit cards remain about £64bn. Experts also warned that while many households managed to repay their debts during lockdown, the hit to workers’ wages and rising job losses at the onset of the deepest recession in living memory would force others deep into the red.
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Yes well when they were/Are Paying people 2.5 Bags to sit in Doors, I would imagine there were spare funds , So the rest of us have ended up
Paying peoples Debts by Proxy , fooking Scandalous tbh ... With mortgage and Loan payments suspended Why were people being paid such an amount ?? |
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WE have people Gloating on here about having 7.5 bag Banks for betfair , Meanwhile Pensioners and the Unemployed living on Fook all .
Beyond belief tbh . |
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Nice to see folk paying down debt when they have a few spare quid.
Just goes to show that debt is forced upon folk, and isn't first choice |
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WHAT A LOAD OF BOLLIX ,If your paying tax you are paying their DEBT ,WHY SHOULD THE TAX PAYER BE PAYING PEOPLES CREDIT CARDS AND CAR LOANS ?
The unemployed get F.a to live on as do those on sick benefit who came up with the 2500 figure ? |
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Billions gone ,that we will have to foot forever ..
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So, I take it that you are against the furlough scheme.
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3 cheers for the tory,s
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Self-employed can get a zero interest loan for 12 months. Ideal way of paying off more expensive credit cards debt.
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there,s even talk of writing the loans off,magic money tree blossomin well in the sunshine, nice bit of rain and even more money to giveaway,
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You will have some couples in the Top Bracket Given 5 grand a month to live on
Spending foook all other than basics And clearing debt ... Years of repayment by us to follow , I am not anti furlough But I find it hard to understand if someone loses a Job they are expected to live on 80 quid a week ,Yet some people are been given 600 quid a week to live on ,Long term sick people About a oner a week ,The state pension can only be 600 a month ?? Why see fit to give people 2500 a month if others are expected to Live on a lot less ?? The payment is over the top ,with Loan and Mortgage holidays available That should have been used .. |
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A bsic furlogh payment of Perhaps 1200 a Month would have been plenty , Rent and Mortgage clsims dealt with seperately , and where
Possible claimants told to use the Holiday ,as for other debts I do not see what that has to do with the Government .. |
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young house buyer,s especially in s east/London will find 6 month mortgage holidays in a house market crash isnt free money
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They are not getting more than they previously earned
Lockdown has moderated their spending and they are doing best thing possible in paying down debt. It is to be celebrated |
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6 month holiday added to 25 year mortgage will cost a few bob.
Should be plenty free calculators on line to calculate it for them. |
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look at next months figures think they were only saving up to go to ikea and mcdonalds,
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No it isnt , Why should the State be paying Peoples Debt ?? Do they include a bit extra in Benefit/sickness payment to pay Debts ??
No one needs 5 bags a month to live on NO ONE ... I have no interest in Banks or other peoples Debts , the Tax Payer has been fleeced , Pay peoples DEBTS when thew UK is going to have to borrow billions Give yer head a wobble ffs |
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Furlough is up to 2.5 k a month
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Yes if a Couple that is 5k a month ?? There are alot of Working couples ,Re 2.5 k are you tell me that the Average Family need 600 quid a week to live on ?? Bar Debt Car loans/Mortgage etc ??
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The state isn't paying people's debt, as you put it.
People are choosing to repay their debt from their income, some of which may have come from the state. A subtle, but significant, difference. |
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Might have 2 kids and get 10k
If they have been running up debts then they are clearly spending more than They are earning, most on furlough do not get 2.5 k by the way, that is maximum. Somebody on 1k a month is now likely getting 800 |
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People are choosing to repay their debt from their income, some of which may have come from the state.
Yes my Excact Point , if they are repaying EXCESS DEBT as your o.p suggest they have too much money to live on .. I know the 80 % scheme D , I am suggesting that some of the payments are more than generous . |
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But they are getting same or less than previously
So they must have chosen or been forced to overspend, and now choose to pay down debt on same money. That is great |
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case, you may not have noticed, but the vast majority of retail outlets have been closed during the last twelve weeks
do you think that it might just be relevant as to why individuals have been in a position to reduce their debt levels ? |
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It will be one extreme to the other as next few months will see record bankruptcies.
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£80 gym -
Football sat £120 - Few beers after work weekly £80- Travel daily £10 - Food at work daily £10 - Kids clubs all gone £££ - Child care £££ - Mortgage break £££- No holiday this year £££- Can see £2500 max will go Far Can see people paying the debts off |
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There will be lots of extra money around if people go without holidays abroad for a year, if they spend it here or reduce their personal debts that is good.
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Food Shopping and diy and garden centre Be roaring
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saddo03 Jun 20 18:51Joined: 04 Dec 05 | Topic/replies: 39,312 | Blogger: saddo's blog
There will be lots of extra money around if people go without holidays abroad for a year, if they spend it here or reduce their personal debts that is good. That was actually official government policy in a number of countries after 1945. Rigorously enforced as well. Still is in one or two (e.g. North Korea). |