I repeat: WOW!
You want to know how retail sales aren’t falling off the cliff and how millions of folk, in the UK, are surviving?
Rising house prices? No.
Rising incomes? Behave.
Falling costs of living? Say, what?
Falling fuel costs? Now you’re making me laugh.
No. It’s rising unsecured debts. Yesterday, the British Bankers’ Association announced lending statistics up to September 2013.
The British Bankers’ Association is the representative body for the UK’s banks.
Oh, everyone knows that mortgage debts are rising Davis. It’s rising mortgages and house prices. Don’t waste our time.
Oh, do they know that now?
According to the Bankers’ mouthpiece, mortgage lending is DOWN year on year. See the red line above. First time it has been down y-on-y for many years. No, everyone DOES NOT KNOW mortgage debts are rising. They are brainwashed.
No, the real news is that unsecured lending is UP year on year. Overdrafts, car loans, kitchen loans, other personal loans.
Pay day loans are ON TOP.
This is how hundreds of thousands or millions of families are not going under. Yet.
They’re taking out more and more loans. To tide themselves over.
Until what??? They get a better job? They win the Lottery?
Households are drowning in debt. They can barely survive even with the lowest borrowing rates (mortgages) in history. Yet they need YET more debt just to survive.
We have an army of debt slaves in the UK (and many other countries). As I’ve said before, they are working for the taxman, the bank and themselves – in that order. And the last is not seeing anything. Hence the annual rise in unsecured lending.
People are so stupid to take on yet more debt. They think “we can’t pay the bills. We’ll borrow more.” Yeah, that’ll solve the problem.
Look, if you’re up to here in debt, the thing you HAVE to do is get out of debt. Sell your house and pay off all your debts. If you have to move in with relatives, well welcome to the real world. Not the one that the elite wants you to believe in – that, for example, house prices will rise for ever. That is pure fantasy. Get out of debt then build your life debt free.
If you don’t have any equity then sell it anyway and get rid of debt. How can you not have equity with prices where they are? What the Hell did you do all these years you lived in it? Oh, you borrowed against it. Again and again. And you blame someone else?
If you have loads of equity and not too much debt (eg less than 2 x joint income) AND your income is very secure, then don’t sweat. Enjoy!
If you are a tenant, congratulations. Rents are cheap in relation to capital prices. Dirt cheap. 4% to 2% of capital value is the norm. Dirt cheap.
Even in London renting can be cheap. Really nice 2 bedders are c £1700/m – £850/m per person sharing. Against a capital value of £600k. Dirt cheap.
Stay out of debt. Pay back the Pay Day(s). Then the high interest loans and cards, and so on.
DO IT NOW. OR YOU’LL REGRET IT FOR THE REST OF YOUR LIFE IF YOU DON’T.
Gosh what a thought! Get out of debt. Preposterous!
What’s the title of this blog?
The whole system is messed up. Due to excessively low interest rates the Government (any Government) continues to borrow vast amounts to pretend all is well and buys votes at elections. Low rates means a weak currency which means high import costs which means rising costs of living for everyone in the country. It also means higher house prices so the rich get richer and the less rich are increasingly screwed. The poor are always poor.
Borrowing rates (mortgages) will not always be this low.
The middle class – the bulk of folk – will not be middle class in the future.
The taxpayer is the guy who works for the Government but who hasn’t taken the Civil Service exam.
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