Pay it back

[ace00]

Scary graph:

http://ftalphaville.ft.com/blog/2009/07/06/60536/the-culpability-of-central-bankers/

It really is all new Lie-Bore's fault.

 

[xoggoth]

Excellent graph that needs more publicity.

 

[minestrone]

As I was saying the other day Major used the budget in 1990 to try and stop the increase in consumer debt, bringing in TESSAS. He realised at the time that too much debt is dangerous and looking at that graph it obviously worked.

It just goes to show what an arse Labour have made of the country.

 

[Cyberman]

As I was saying the other day Major used the budget in 1990 to try and stop the increase in consumer debt, bringing in TESSAS. He realised at the time that too much debt is dangerous and looking at that graph it obviously worked.

It just goes to show what an arse Labour have made of the country.

... and then in 1997 Labour abolished PEPS that allowed people to save 9K annually tax free and brought in the ISAs that reduced this amount considerably. On top of this they abolished tax credits on dividends that destroyed pension saving and we all know where that leaves us. A Labour government means tax, tax and more tax. People will learn one day.

 

[BrilloPad]

So in theory interest rate rises should hit people very hard when they come?

 

[Fred Bloggs]

So in theory interest rate rises should hit people very hard when they come?

As they surely as night follows day. 6 or 7% base rate within 2 to 3 years I reckon. Fix your mortgage rate now if you have one.

 

[BrilloPad]

As they surely as night follows day. 6 or 7% base rate within 2 to 3 years I reckon. Fix your mortgage rate now if you have one.

But rates wont need to go that high if people are so indebted? I wonder how the debt is split between fixed and floating?

 

[Fred Bloggs]

But rates wont need to go that high if people are so indebted? I wonder how the debt is split between fixed and floating?

Majority of mortgages are now fixed (remember reading that in the Telegraph a couple of weeks back). Government expenditure and debt will drive inflation/interst rates rather than a consumer side boom this time. A gilt stike and a big downgrade in UK credit worthy-ness from AAA to A- or B+ in the market will see the UK's interest rates rise considerably, IMO.