They think its all over....It is now...

ChopperST

brit1234 wrote: »

In a reality we would be in a better position. All the stimulus has done is increase asset prices and miss-allocate resources. Personal debt is now at a record high and national debt is at a record high. Instead of bad practice being allowed to fail it was bailed out and allowed to multiply.

If house prices were allowed to correct then people could buy for less and have more money to put into the economy. Cheap credit just fuels debt and what do you do when that debt bubble burst. Interest rates are technically zero, when this debt bomb goes off there is almost no stimulus left to save you.

I've often wondered about the so called debt time bomb and how many people are just actually being savy with credit. Personally we have around £10k of "debt" on 0% credit cards and 0% deals. But with £50k in savings. Whenever we buy something we will always look to purchase it on credit if someone is offering a 0% deal. Pointless giving up your hard earned if someone else is willing to lend you the money for nothing while you can leave the money in the bank in relatively easy access at 3, 4, 5 or even 6% This net effect of savings v credit will not be quantified in the "debt time bomb."

7clubs

ChopperST wrote: »

I've often wondered about the so called debt time bomb and how many people are just actually being savy with credit. Personally we have around £10k of "debt" on 0% credit cards and 0% deals. But with £50k in savings. Whenever we buy something we will always look to purchase it on credit if someone is offering a 0% deal. Pointless giving up your hard earned if someone else is willing to lend you the money for nothing while you can leave the money in the bank in relatively easy access at 3, 4, 5 or even 6% This net effect of savings v credit will not be quantified in the "debt time bomb."

Would you be kind enough to point me in the direction of these bank accounts offering easy access and 6% interest? I would fill my boots at that rate!
Thanks.

chucknorris

7clubs wrote: »

Would you be kind enough to point me in the direction of these bank accounts offering easy access and 6% interest? I would fill my boots at that rate!
Thanks.

First direct regular saver (not easy access) pays 6%, but don't hold your breath, you can only save £300/month. The good news though, is that you can easily get 3-4% in dividend income with equity funds, with no limits on how much you invest.