Digging ourselves deeper into debt
IS this Government stark raving bonkers?
Yet another interest rate cut has dropped the level down to 1.5 per cent and the difference this makes is astronomical to anyone who's been sensible with their money.
It seems this Government has a fiscal policy of bashing the thrifty to pay the greedy.
I just wish I had known this many moons ago when I would have gladly taken out a 125 per cent mortgage, maxed out as many credit cards as possible, taken as many loans as I could and said Pooh Bear to that savings malarkey!
Yes, I know I am exaggerating a bit, but it has to be said the law helps those who are flash with the cash.
An individual Voluntary Arrangement (IVA) for example can help you clear your debt in months, by writing off the vast majority on your behalf.
At a push there's also bankruptcy, which has relaxed its rules and regulations, making it easier for people to write off their debt and start over after just a short 12 months!
This does damage your credit rating of course, but if you have just blown tens of thousands of pounds and have no feasible way of paying the debt, I do not think that will be your main concern anyway.
In the 315-year history of the Bank of England rates have never been this low.
During the Great Depression and the Second World War, interest rates did not dip below the two per cent level the Bank set last month.
Up to this point, for some reason the Monetary Policy Committee (MPC) has received praise for driving down the cost of borrowing in an attempt to increase borrowing and start spending.
Isn't the British public up to its eyes in enough debt as it is without being encouraged to dig deeper into even greater levels of debt?
"Spending money to get out of a recession is like standing in a bucket and trying to pull yourself up," said Winston Churchill.
Enough said really, but this Government can not comprehend this simple equation!
Dennis Thompson,
Regent Court,
South Shields
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Weather for South Shields
Tuesday 07 February 2012
Today
Sunny spells
Temperature: -3 C to 6 C
Wind Speed: 9 mph
Wind direction: South west
Tomorrow
Sunny
Temperature: -2 C to 1 C
Wind Speed: 10 mph
Wind direction: South
