Four million households are paying their mortgage or their rent with their credit card or a personal loan, reports the Times. That is quite, quite terrifying. The loan could very possibly be fraudulent in that its true purpose has not been declared, and if discovered risks the loss of the house. Credit card default risks the loss of the house also, regardless of the use to which funds have been put - funds carrying 15% and upwards interest rates at that. Effectively these households have sunk already. Four million of them, and there must be a strong suspicion that many of these borrowers are in so deep only to buy former council housing.
Nothing like 11 years of New Labour and Gordon Brown managing the economy to beggar the poorest and leave them homeless as well.
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Desperate times for people.
We never were 'rich' as the Nu Lab propogandists and far too much of the Conservative press were telling us. The boom was an entirely false one which I expected to burst 4 years ago.
The real crime here is that people on such obviously low incomes even have access to credit cards.
Last month with no request from me I was informed by my bank that my credit limit had been raised by a further (unwanted and unnecessary) £5000.
My second card issuer (a hangover from many years ago when it was a building society with whom I had a small savings account) recently up-graded my card to Platinum status, again off their own bat, with the concomitant credit limit increase too, which is very odd as I do not use that card more than once every year or so (just to keep it alive really). Happily they do not charge fees for just holding a card at that level and if they did I would simply close the account completely.
I use my cards sparingly and make a point to pay them off in full every month so the bank makes little or nothing from me and the credit limits have now reached a quite ridiculous level.
If banks do this sort of thing with people in dire straits who are unable to manage their finances properly they should be prosecuted for loan sharking.
It's terrifying.
Absolute melt-down by Autumn.
Darling slung out by then, Balls installed and already hopelessly out-classed by institutions.
And all because that bloody Brown wanted to be Prime Minister. He really has started a bad time for this country, and he still believes he can pull everyone out alive.
They really have sunk to a new low.
UK PLC, currently borrowing to pay the interest on UK PLC's debts.
Gordon, as the song went, is (truly) a moron.
Oh Gordon Brown! The only Prime Minister where "incompetence comes as standard". Great idea trying to build an economy on the foundations of bad Debt loans and over-inflated property prices. Now the storm is breaking but unlike the man who helped plunge the UK into financial suicide, the people are going to feel real financial hardship for the forseeable future.
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