William Buiter, the chief economist at Citigroup recently said,
“Those who say the European economy is recovering are smoking something.” Even though the UK is supposed to be weaning itself off debt, the UK’s aggregate debt levels have soared since 2007.
In fact, PricewaterhouseCoopers warned that Britain’s total debt will top £10 trillion by 2015, saying that the burden could slow growth for decades as interest rates eventually rise.
Furthermore, the firm believes interest rates on mortgages may end up higher than before the recession, as tougher regulation pushes up lenders’ costs. Every week a new government statistic is released suggesting confidence is up and we are a nation on happy pills.
Apparently our employment rate would make Angela Merkel envious.
The picture painted is an encouraging one, an optimistic one, a remarkable one. The reality is that households have rarely been more squeezed.
But it doesn’t serve any political agenda to highlight the increased burden on homeowners.
A spokesperson for Rescue My Properties, a company that specialises on mortgage debt said, “Personal debt has become an unfortunate way of life for many Brits. “This is hardly the recipe for confidence.
“The reason people aren’t paying the mortgage on their homes is simply because they cannot. They do not have the money to pay that one very imperative debt. This then has a domino effect on personal finances. It means people cannot cover other basics of life, such as electricity and food bills. Feel good headlines or thinktank surveys do not report the reality that households are under constant worry and stress.
“Rescue My Properties have helped over 3000 clients in the past 8 years to deal with their property related problems and get rid of crippling debts.”