You are here: Home - Uncategorized -

ED’S COMMENT – The true cost of debt

0
Written by:
11/09/2007

For far too long it was just too easy. Invitations to take out credit cards and personal loans dropped through the nation’s letterboxes by the ton and, boy, did we go for them. Life, as the poet Philip Larkin once said, was “A brilliant breaking of the bank/A quite unlosable game”  courtesy of the credit-mongers.-more->

But it wasn’t, of course, and now the losers are counting the cost of their profligacy, as the Citizens Advice Bureau (CAB) grimly reports in its latest debt update report.

The CAB is handling 6,600 debt queries every single working day, up 20% in the last year, and it’s not just credit repayment issues that are causing concern. “Hundreds of thousands of people are increasingly struggling to meet day-to-day living expenses and that’s a real worry,” said CAB boss David Harker.

“Gas and electricity problems shot up by a third (33%), while council tax enquiries went up 25% and telephone debt problems 19%. Problems with mortgages and secured loans were up 11%, which of course impact on people’s homes.”

Well, yes, of course they do. It would have been better if the credit companies had heeded Harker’s current advice, say 10 years ago, before things had gotten this bad: “Lenders need to do much more to check that borrowers are really in a position keep up repayments when they take out credit.”

But they didn’t, hence the current mess and one, moreover, that looks as if it will get a lot worse before it gets any better. It wasn’t Larkin’s bank that was broken – it was us.

Tagged:

Tag Box

Debt

Pension

Spending

Financial fitness

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Are you a first-time buyer looking for a mortgage?

Look no further, get the help you need by searching for your perfect mortgage

Which ISA is right for you? A round up of the six products available in 2017

From cash to innovative finance to lifetime, here's our guide to the ISA products available to savers this yea...

Guide to buy-to-let tax changes

In late 2015, former Chancellor George Osborne announced a range of  tax measures aimed at landlords, which t...

A guide to switching energy provider

All you need to know about switching from one energy supplier to another.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Five fund tips for a 0.25% interest rate environment

With interest rates stuck at a record low 0.25% and expectations rates could fall to close to zero, here are ...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Investing your money

Alliance Trust Plc gives you smart insight into how to invest your money

Money Tips of the Week

Read previous post:
UK debt problems mount as price is paid for easy credit

The number of people seeking advice on debt has gone up 20% in the past 12 months, according to the...

Close