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Are there more people in debt or credit in the UK?
If you deduct the balance of most people's bank accounts (assuming that they are in credit) from the amount that they owe on credit cards, loans, etc., would the average person be in credit or debt? (This, of course, excludes that fact that most people will have plenty of assets to cover their financial debts if they were pushed).
asked in money, debt, credit



CGA answers:

Well, overall the amount of money invested has to balance with the amount of money loaded + the reserve the banks hold.

However, give the relatively small numbers of extremely rich investors and the large numbers of ordinary people with loans of various sorts (including mortgages) it would seem that there are more in debt than credit.


Supplement from 09/10/2007 12:42pm:

loaded = loaned


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Military-Lass answers:

Would it not work that the % of people would be in credit.
Most debt would be from Student to 30's.
(Most people I know in their late 30's/40's have only their mortgage and a low credit card that is paid off monthly.)
And as the older end of the population is not deminishing as it did years ago there most be loads of older folk with no debt. - Just an observation


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PocketDemon answers:

Not quite an answer, but whilst they 'may' be biased on the high side, http://www.creditaction.org.uk/debtstats.htm gives some interesting figures...


...however the problem is how you define 'the average' person, for example -

Whilst it's possible to say that there is x amount of debt & x million people do such & such, etc a significant proportion of the debt will be held & the behaviours carried out by a more limited no of the same people...

Likewise, do children whose parents are in debt or non-working partners of people in debt count?

Do NI contributions & other payments into pension schemes count as savings? (the government counts pension scheme contributions as being savings)

Whilst x amount of debt may be secured against, for example, property, if all of the debt were called in what would the property actually then be worth? Or, take the late 80's when many people were left with negative equity as an example of what could happen.

is someone who pays for goods/services using a credit card but pays the balance off by the due date in debt?

Likewise, items like utilities are usually paid after they have been used so is that a debt until it's paid? (well you normally couldn't change suppliers without clearing it even if you were before the due date, so...).


Supplement from 09/10/2007 05:30pm:

- yeah, it just depends hugely on how you define everything.

(missed this at the end)


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