The current credit crisis seems to be slowing, but the economy is incredibly frail and many things could tip the balance either way. Interest hikes versus inflation? Which is the lesser of two evils? One thing's sure borrowing just got harder!
There are so many conlficting opinions and prognoses on the potential outcome of our current economic downturn, that nobody quite knows what to believe. If house prices continue to plummet and as yet there seems to be no sign of them slowing, then the economy is sure to shrink. A lot of the UK personal debt mountain is attributable to secured borrowing against property. If the value continues to fall and repossessions increase as is forecast, what will become of the lenders who are desperate for injections of cash, but unable to liquidate their grwoing property portfolio? Will lending get tighter? Interest rates higher?
People are going to have to live with the fact the freely available credit at low rates is; for the time being at least, very much a thing of the past! Confidence is at an extremely low ebb and confidence whether from consumer or lender is the only thing likely to drive our economy forward. The UK is going to see a radical shakeup of the finance industry from within. The lenders will not be quite so gung-ho about their business models and reticent to plunge themselves back into the same chasm where they now find themselves.
A carefully structured policy needs to be adopted by the credit industry, Government, regulators, bank chiefs and consumers alike. We need a rethink of what constitutes necessity and what is luxury. Many Britons seems to have lost sight of this and all the latest modern gadgets etc are all of a sudden essential. As the PM Gordon Brown has stated, we need to look very carefully at the amount of waste in our country. By being more prudent and careful, we can all "Make the money go further."
Personal debt needs to be put firmly under control. Failure to do so means debt controls the consumer. That is why we find couples having to work 4 or 5 jobs between them just to meet the bills and feed their family. This is in part to blame for the breakdown in our social fabric. There's a real stigma about asking for help though. It would seem that people will only ask for any form of assistance when the situation is desperate and often there is little hope of redemption.
Anybody suffering from personal debt should do the sensible thing and seek professional advice and help at the earliest opportunity. All financial bodies state that if you have any kind of difficulty repaying your debts you should go to them for help. However, as a charity we are approached by a constant stream of people who have tried to do so and been rebuffed. The general consensus is that the response they get is, "Pay up or else!" The sympathetic ear seems to be profoundly deaf!!!
If you find yourself a victim of the credit crunch, have difficulty meeting your repayments and feel as though you might be fighting a losing battle, please visit our website and check out how we can help you, totally free of any charge. As a debt charity we pride ourselves in offering a first class totally free service that is simple to use and freely available. Our address is www.sterlingtrust.org.uk
By using the site you will be taking a huge step towrds getting your finances back on track and taking an element of control in your life. None of the information is ever disclosed and everythig is secured using 128bit encryption technology. Do the right thing now and get the help you deserve.
Free debt help charity that enables anybody with an unsecured debt problem to manage and control it themselves. Simple to use but very powerful and totally free from charge. There are 3 simple steps to debt freedom, take the first one now!
www.sterlingtrust.org.uk
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