£180bn Debt

[rov1200]

If I refuse to pay my council tax on time I am threatened with court action, a hefty fine and baliffs. If I was allowed to delay my payments I could continue splashing out on life's essentials.

Why is the government allowed to postpone its debts?

[jno]

because they're the government and you're not? The question is who has the authority to 'allow' (or forbid) them to do so.

[R1Geezer]

They are not postponing their debts, they pay their commitments, eg national savings interest is paid on time. The headline figure is what is owed in total, it's just like personal debts as long as you continue to pay your commitments eg minimum payments on credit cards etc everyone is happy. Money is constantly comming and going out.

[craft1948]

I've just got my council tax bill for the year and it's gone up 2.67%...........my basic state pension is going up 2.5%................worrying now about how to send my extra money.........oh hang on I'm in deficit.

[McMouse]

Craft your council tax is less than your pension.

[craft1948]

No mouse............my council tax is more than the basic state pension.....even with the wonderful 25% discount for being a single occupier........

[craft1948]

sorry mouse I got carried away there.......my council tax is substantially more per month than my weekly state pension so all of my pension increase, and a bit more, will go on my council tax

[jake-the-peg]

Government debts are different from personal ones

(Shh don't tell Margaret Thatcher she still thinks running a country's like managing your housekeeping money)

Hate to break it to you rov but you will die one day as will we all - but the country will go on that makes a substantial difference when working out repayments of loans.

We only stopped paying for WWII 20 minutes ago

Another significant difference is we are partly the ones lending to the government for spending on us

So sending the Bailiffs around is a bit problematic!

[rov1200]

There's truth in the saying:

If you owe the bank a miniscule amount the problem is yours

If you owe the bank a colossal sum its a problem for the bank.

Maybe thats why the government can get away with it!

[rojash]

rov1200, obvioulsy you don't have a credit card, or you'd understand that banks like debtors, and they particularly like long term debtors.

[R1Geezer]

In fairness to the government this is not really that bad. imagine if you earned 10K a year, would you think that a loan of 3K outstanding as a terrible thing? I think you need to study government finance a bit more rov. The headline figure looks bad but in reality it's not a disaster. Oh and I'm anti Noo Labour believe me.

[rov1200]

Geezer so you think a debt of £180bn is a drop in the ocean? Get real!

[R1Geezer]

yes the government has a trillion a year income. £180bn total debt is like earning 10k a year and having a loan for 2k.