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    Who Is Responsible For thASDe UK Consumer Debt Mountain

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    bennyv1990
    The UK consumer debt mountain has reached unprecedented levels, exceeding £1.5 trillion as of December 2014. Personal debt grew 10% in the past year alone, an increase of £114 billion. Mortgage and secured lending on homes reached £1 trillion, rising 11% in the past year and representing 80% of total consumer debt. The remaining 20% is loans and credit cards, which are often used to consolidate other debts. While debt levels are at all-time highs, low unemployment has meant many can service their debts for now. However, this culture of easy credit and materialism risks promoting overspending beyond people's true means, leaving them vulnerable if economic conditions change.

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    Who Is Responsible For thASDe UK Consumer Debt Mountain

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    bennyv1990
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    The UK consumer debt mountain has reached unprecedented levels, exceeding £1.5 trillion as of December 2014. Personal debt grew 10% in the past year alone, an increase of £114 billion. Mortgage and secured lending on homes reached £1 trillion, rising 11% in the past year and representing 80% of total consumer debt. The remaining 20% is loans and credit cards, which are often used to consolidate other debts. While debt levels are at all-time highs, low unemployment has meant many can service their debts for now. However, this culture of easy credit and materialism risks promoting overspending beyond people's true means, leaving them vulnerable if economic conditions change.

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    Who is Responsible for thASDe UK Consumer Debt Mountain

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    The UK consumer debt mountain has reached unprecedented levels, exceeding £1.5 trillion as of December 2014. Personal debt grew 10% in the past year alone, an increase of £114 billion. Mortgage and secured lending on homes reached £1 trillion, rising 11% in the past year and representing 80% of total consumer debt. The remaining 20% is loans and credit cards, which are often used to consolidate other debts. While debt levels are at all-time highs, low unemployment has meant many can service their debts for now. However, this culture of easy credit and materialism risks promoting overspending beyond people's true means, leaving them vulnerable if economic conditions change.

    Copyright:

    © All Rights Reserved
    Download as DOC, PDF, TXT or read online from Scribd
    Download as doc, pdf, or txt
    52 views2 pages

    Who Is Responsible For thASDe UK Consumer Debt Mountain

    Uploaded by

    bennyv1990
    The UK consumer debt mountain has reached unprecedented levels, exceeding £1.5 trillion as of December 2014. Personal debt grew 10% in the past year alone, an increase of £114 billion. Mortgage and secured lending on homes reached £1 trillion, rising 11% in the past year and representing 80% of total consumer debt. The remaining 20% is loans and credit cards, which are often used to consolidate other debts. While debt levels are at all-time highs, low unemployment has meant many can service their debts for now. However, this culture of easy credit and materialism risks promoting overspending beyond people's true means, leaving them vulnerable if economic conditions change.

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    Ben Varian Economics Debt Essay 19/09/2014

    Who is responsible for the UK Consumer debt mountain?


    The situation of debt in the UK is dire; ersona! debt has e"ceeded #1 $
    tri!!ion and at the end of December 200% it &as a!most #1'( tri!!ion' )n the
    ast t&e!*e months it has +ro&n by 10'%, &hich e-uates to an increase
    of #114bn' This amount of debt is unrecedented in the UK.s economic
    history' The amount of debt from mort+a+es and secured !endin+ on
    homes has reached the #1 tri!!ion mar/ as &e!!; this is an increase of
    11'0, in the ast t&e!*e months' This amount of debt from mort+a+es
    reresents 10, of tota! consumer debt'
    The remainin+ t&enty er cent of debt o&ed on is !oans and credit
    cards 2the irony bein+ that the ma3ority of the !oans are bein+ used to
    conso!idate debts' )n December tota! consumer credit !endin+ to
    indi*idua!s &as #21( bi!!ion4 an increase of %'2, o*er the ast year
    Tota! !endin+ in December 200% +re& by #11'%bi!!ion &ith secured
    !endin+ +ro&in+ by #10'%bi!!ion in the month and consumer credit
    !endin+ +ro&in+ by #1'0bi!!ion'
    The nature of debt is a doub!e2ed+ed s&ord4 once you are in debt;
    the on!y feasib!e &ay to rid yourse!f of it is to !oan money4 &hether by
    mort+a+e or ersona! !oan' This incurs further debts !eadin+ to a
    sira!!in+ uncontro!!ab!e !e*e! of debt'
    5o&e*er for that to be considered the so!e reason for debt is
    farcica!4 it mere!y acce!erates the +ro&th of the debt; it does not cause
    debt in itse!f' Therefore there must be another cause4 ossib!y numerous
    causes' But &hi!e debt has been at an a!!2time hi+h the true im!ications
    and e"tent of such hi+h !e*e!s of debt ha*e not been fe!t by the UK
    consumers4 in recent years eo!e ha*e been re!ati*e!y &e!! off; !o&
    unem!oyment has meant eo!e ha*e a!&ays had 3obs to ay off those
    Ben Varian Economics Debt Essay 19/09/2014
    debts4 ho&e*er &ou!d they ha*e the debts if they &ere unem!oyed6 The
    ad*erse effect of ha*in+ a 3ob is that eo!e may consider themse!*es to
    ha*e more money than they actua!!y do romtin+ them to therefore
    consume more' This is the rob!em &ith the materia! society in &hich &e
    !i*e4 eo!e are 3ud+ed on &hat they ha*e and ho& much money they
    earn' 5o&e*er money has become such an e!usi*e and indefinab!e term4
    this is due to the rise in the !ast ten years of 7easy8 money' This is thin+s
    such as credit cards; they a!!o& the consumer to buy no& and ay !ater'

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