Together we owe over £1 trillion
We all love to shop and our love of shopping is growing. It has become easier to fuel our love of shopping with a remarkable increase in the number of goods we are able to buy, the number of ways we can buy them and the cheap credit on offer we can use to buy them. But have you taken the time to stop and think about the long-term consequences of this trend?
There is a portion of society that are debt free and live financially independent lives. Then there is a portion that suffers from increasingly spiralling debt. The debt spiral is fuelled by the purchase of consumer goods with unsecured debt. We are buying things we use in everyday life with money we don’t have.
Then we borrow from Peter to pay Paul. When debt is growing faster than household income, insolvency will follow at some point. It is just a matter of time. This is when debt becomes out of control. Because it happens gradually, most people don’t notice it before it is too late.
The simple fact is that national debt cannot keep growing at current rates. As more people are becoming insolvent, lending institutions will become nervous and start taking measures to protect their profits, such as pushing interest rates up. From there, the insolvency spiral begins and affects more and more households.
Statistics show that the insolvency spiral has already begun. It can take years for a person to recover from insolvency.
Cheap
Credit Is Too Good To Be True
Together We Owe
Over £1 Trillion
Debt Can Make Goods More Expensive To Buy
Lending Is Not Properly Regulated
The Threat Of
Insolvency Is Very Real
There Is No Such
Thing As Free Credit
You Can and
Should Use Debt To Make Money