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Households on 'money knife-edge'

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    Households on 'money knife-edge'

    We're all doomed...

    Two million households are living on a financial knife-edge, susceptible to an economic downturn, a Financial Services Authority (FSA) survey has suggested. A further half million households are already having difficulty paying bills and meeting debts, the report found.

    The FSA identified a lack of consumer knowledge, particularly amongst the 18-40 age group, as key to low levels of saving in the UK. The FSA pledged £10m this year to boost financial knowledge amongst consumers.

    -Seven out of 10 consumers have no savings in place to see them through a sudden drop in income

    - 42% of working age adults do not have a personal or workplace pension, yet 81% recognise that the state pension will not be enough for them to enjoy a comfortable retirement

    - Four out of 10 consumers who have an equity Individual Savings Account are unaware that its value can fluctuate with stock market performance.


    Read On: Households on 'money knife-edge'

    #2
    And to think a few minor incremental increases in interest rates could precipitate financial ruin for very large numbers of over-indebted households.

    Oh bugger....the USA Federal reserve have already and continue to persue a policy of increasing USA interest rates, therfore our own "independent" (yeah right) MPC follow their lead or risk a serious devaluation of sterling.

    Fed's Bernanke sees price risks

    I dont think we are "All Doomed", but I do think that people who are heavily indebted or over geared in the property market are well and truly ferked.

    Comment


      #3
      Not exactly a surprise though is it? Been working in Banking for 15 years and frankly the writing has been on the wall since 1998.

      Comment


        #4
        Originally posted by eternalnomad
        And to think a few minor incremental increases in interest rates could precipitate financial ruin for very large numbers of over-indebted households.

        Oh bugger....the USA Federal reserve have already and continue to persue a policy of increasing USA interest rates, therfore our own "independent" (yeah right) MPC follow their lead or risk a serious devaluation of sterling.

        Fed's Bernanke sees price risks

        I dont think we are "All Doomed", but I do think that people who are heavily indebted or over geared in the property market are well and truly ferked.

        Yeah but, no but...yeah but....mortgage lending is on the rise http://news.bbc.co.uk/1/hi/business/4848654.stm see. House prices are going to shoot up

        Comment


          #5
          Originally posted by TwoWolves
          Not exactly a surprise though is it? Been working in Banking for 15 years and frankly the writing has been on the wall since 1998.

          No, its no suprise for anyone who took a passing interest in current affairs other than "Big Brother" and "I am a D list celebrity, please keep my fizzog on TV"

          But, remember our glorious chancellor "prudent" Gaydon Brown has already promised the electorate of this country there would be "no return to boom and bust"

          The hard of thinking (for this read 85% of the british electorate) have been conned big time, sadly the economic pain will, as always disproportionally affect those least guilty of personal financial stupidity.

          Comment


            #6
            Originally posted by eternalnomad
            But, remember our glorious chancellor "prudent" Gaydon Brown has already promised the electorate of this country there would be "no return to boom and bust"
            Well at least he's half right.

            Comment


              #7
              Originally posted by eternalnomad
              The hard of thinking (for this read 85% of the british electorate) have been conned big time, sadly the economic pain will, as always disproportionally affect those least guilty of personal financial stupidity.
              Cue five and channel 4 to start churning out documentaries about how evil banks are to loan unemployed people many thousands of pounds, and how the 'stupid' people who borrowed far more than they can repay believe its the banks fault and not their own greed, stupidity and chavness

              Comment


                #8
                Sorry, but it is the banks fault. Lending money to people knowing they are unlikely to be able to pay it back is reckless.
                Insanity: repeating the same actions, but expecting different results.
                threadeds website, and here's my blog.

                Comment


                  #9
                  I don't think there's any problem, economic or otherwise, that can't be solved by a sharp increase in taxation.

                  HTH

                  Gordon

                  Comment


                    #10
                    Originally posted by threaded
                    Sorry, but it is the banks fault. Lending money to people knowing they are unlikely to be able to pay it back is reckless.
                    The point is, Threaded, that the overwhelming majority of people do pay it back. Look at the profits the High Street banks make, even with extra provisions for bad debts.
                    We must strike at the lies that have spread like disease through our minds

                    Comment

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