Long but interesting article in Independent on debt

Prudent

http://news.independent.co.uk/uk/this_britain/article2103690.ece

Think the civil servant in one of the case studies has found mse by his approach to debt.

Mrs_Sparkle

Interesting article- thanks!

Broken_hearted

That was scary. Reading it made me feel like we had no choice, that debt would eat us up whether we liked it or not. I hope it's not like that, that I can become and stay happily debt free.

Megatimbo

Hello,i`ve just read the article from the link you gave,interesting but a rather doomy point of view,in that people are just credit card drones with no free will,who forces you to "max out" as the author puts it.

Most people on this site have realised that they cant go on as they are hence the light bulb moment so a shift in atitude is part of the overall plan to get out of debt,i must disagree in thats its all hopeless if you plan your finances correctly,it can be done,and many people have.

regards M

I_was_a_fool

"As industry executives warn against regulating their sleek new profit machines, arguing that it is up to the consumer alone to inject responsibility into their system......"

Very telling quote from the article. I have heard this point of view over & over again on this forum, other forums, in the media, from the finance industry. Yes, people, the consumers, the borrowers must be more responsible, but that is NOT ENOUGH!

A huge industry is at work normalising debt & rampant consumerism and it needs regulation and responsibility on the part of the lenders AS WELL.

This is a much bigger issue than individuals debt problems. Our whole economy is now being driven by debt, funded by money that has not yet been earned, but has been spent. I fear that when the collapse comes, it will be the worst we have seen so far.

cathybird

very interesting article ... it is doomy but I suppose that gets the message that Consumer Debt Is Bad For The Consumer through a lot more clearly to whoever reads it. Whenever I read anything along those lines I feel so grateful for realising that I had to pay my debts off before they got out of control, ie for having my lightbulb moment. Thanks Prudent, good link

georgiasmum

wow!!! I am amazed at this powerful article.

Pobby

Great link.I particular I strongly second the theory that the U.K has split into 2 classes,the ones with capital and those that rent it from them.This seems like a return to days when Victoria was in the throne or even earlier when Britain had a system made up of landowners and serfs.So what has happened?

I was talking to a long time friend today.His son has a phd and is married with a double income and yet rents an ex-council flat in a high rise development for a breath taking £900 per month.He has no chance of buying somewhere for himself.

My wife and I have a joint pre tax income of nearly £50k a year and bar £5k are mortgage free but certainly we don`t feel wealthy.30 years ago with a joint income of around £14k and a mortgage we felt very comfortable.

Something intangible has happened and I find it hard to put my finger on it.

Remembering when interest rates shot up in the early 90s and people were going bankrupt,I can fully understand.I can also understand folks may find themselves in difficulty because of illness or changes in circumstances.However interest rates have been very low so what is going on now????Beats me!

roswell

Pobby, The answer isnt whats happening but whats happened, Wages havent kept up with REAL inflation, people have found that for a small fee they can borrow huge amounts of money so they have cashed in the equtiy from there properties to pay of debts and ran these up again. There was to much cheap money but that is changing. We as people have found that 10 years of low interest rate means we have forgot what the NORM is.

Kevicho

"""wise old souls will observe that society is regressing into a feudal state with only two classes - the owners of capital and those who rent it from them. Politicians will wash their hands and say that nothing can be done because the financial industry is too large and too woven into the fabric of society to be regulated.""""

Thats the quote for me in that piece, interesting read, but nothing really new

Tootsie_Roll

It's not very accurate and makes a lot of assumptions based on those inaccuracies.