The day of reckoning has arrived for a debt-soaked nation living for too long on easy credit. And it's going to hurt

 

The day will soon come for a debt-soaked society that has seen outstanding household loans double to £1.3 trillion in just seven years.

 

So far, the level of repossessions is a far cry from the days of the early 1990s recession and property crash. Between 1990 and 1993, 247,000 homeowners lost their homes as house prices slumped and unemployment rose sharply.

 

But the Council of Mortgage Lenders estimates this measure of affordability, or arguably unaffordability, reached a 15-year record even before the latest mortgage rises kicked in, this spring.

 

For this reason, others think we have already reached the point where the credit crunch is biting. "I doubt the housing market can even take another quarter point," adds Boulger, one of the most respected mortgage commentators.

"Only in London, Scotland and Northern Ireland are house prices still climbing. Another rate rise would choke this off and push prices in much of the rest of the country into reverse."

 

To make matters worse, the biggest impact of higher mortgage rates is still to come for many homeowners. Analysts at Credit Suisse estimate a million borrowers who took advantage of cheap two-year fixed rate loans at the end of 2005 are about to experience the shock of their lives.

Ouch :kink:

Most important is the high amount of people due to retire and also them living longer. Which means they require money to live on and that invariably means withdrawal of money from the stock market. Same situation exists in the US.

I was brought up to live within my means. I know this sounds pompous / superior but I think it is a concept that is rare in todays greedy society.

 

I consider myself fortunate to have bought my house before prices got silly - it is A LOT harder (if not impossible) to get started on the property market now!!

The majority of this debt is the scarily high mortgages needed for even the smallest house these days.

 

Every shop / company want to sell you a lifestyle - and if you can't afford it no problem - 4 years credit with nothing to pay for a year (they will just pop the credit costs onto the price of whatever you buy)

 

And if you can't repay all your debts - some credit management firm will sort it all out for you!!!

 

Again no responsibility!!! ...... "not my fault - is the credit card company's for giving me credit!!"

 

Not a popular concept but without paying interest / credit charges everything is cheaper - altho may take a little longer to get.

 

I may be old (:o ) but I don't owe a penny to anyone - and haven't done for 15 years. Is how I can afford 3 skiing holdiays a year on a teachers wage :rofl:

 

 

I was brought up to live within my means. I know this sounds pompous / superior but I think it is a concept that is rare in todays greedy society.

 

I consider myself fortunate to have bought my house before prices got silly - it is A LOT harder (if not impossible) to get started on the property market now!!

The majority of this debt is the scarily high mortgages needed for even the smallest house these days.

 

Every shop / company want to sell you a lifestyle - and if you can't afford it no problem - 4 years credit with nothing to pay for a year (they will just pop the credit costs onto the price of whatever you buy)

 

And if you can't repay all your debts - some credit management firm will sort it all out for you!!!

 

Again no responsibility!!! ...... "not my fault - is the credit card company's for giving me credit!!"

 

Not a popular concept but without paying interest / credit charges everything is cheaper - altho may take a little longer to get.

 

I may be old (:o ) but I don't owe a penny to anyone - and haven't done for 15 years. Is how I can afford 3 skiing holdiays a year on a teachers wage :rofl:

 

i fully concur... its strange really that thatcher often said 'live within your means' yet stoked up the greed culture that has blossomed today.

 

that stupid picture advert for loans... borrow £25k , repay £43k !!! thats just fukkin STUPID!. £18k down the drain... just for being greedy and not saving.

I agree ... as a student, I often find myself struggling to always make my finances work, but I've also been brought up to not buy what I know I can't afford. I rarely ever buy ANYTHING even at this stage of my life thinking "I can pay it back in a fortnight", and I NEVER borrow money from my friends.

 

I hate getting myself into a financial mess over a hundred quid, so I have no intentions of getting myself into thousands of pounds worth of debt!