interest rate cuts could be on their way

HugoSP

I'm a fan of stricter lending controls with a reduction in interest rates.

If you think about it, the social cost of the credit world we live in today has been high for a long time. Increased personal financial committment has lead to stress in family life, which in turn has helped lead to a breakdown of society.

My solution, which I have posted on another thread is to reduce rates, but restrict extra credit to tight criteria. This will give the over committed a way out whilst others will not be allowed to fall into the trap of debt.

I know this smacks of a nanny state, I would nor argue otherwise, but we do need controls, as some people just need protecting from themselves.

lieutenant_dan

HugoSP wrote: »

I'm a fan of stricter lending controls with a reduction in interest rates.

If you think about it, the social cost of the credit world we live in today has been high for a long time. Increased personal financial committment has lead to stress in family life, which in turn has helped lead to a breakdown of society.

My solution, which I have posted on another thread is to reduce rates, but restrict extra credit to tight criteria. This will give the over committed a way out whilst others will not be allowed to fall into the trap of debt.

I know this smacks of a nanny state, I would nor argue otherwise, but we do need controls, as some people just need protecting from themselves.

I think the lenders are already seeing the errors of their way throwing money at people mindlessly which can't be repaid and ends up as bad debt.

Then there's the secured debts, fine in theory to a point in a buoyant housing market, but what about if there's a downturn in the market as anticipated?

I know some recklessly get into debt, but others claim they get into debt through circumstances out of their control, not really their fault etc, such as losing a job or other changes. But I wonder how people in previous generations coped with these setbacks, when easy credit wasn't available?