Debt is not really something that Sylvester Stallone is familiar with, however his partner, Arnold Schwarzenegger, in a new film called Escape Plan, having being the Governor of the bankrupt state of California, is well used to the ravages of debt, despite being worth more money than a man could count in a lifetime.
It is Sylvester’s Birthday today so Happy Birthday!
Debt is all consuming and is always around the corner. The mortgage rates in the UK are at their lowest and yet many home owners are signing up to mortgages that will definitely get them into severe debt.
History is only useful if it is taught. In 1979 the interest rates were at 17% so if you had a mortgage the rate you would have been paying was significantly higher than that. If the interest rates now were to move to the historic average rate of 8% then most home owners would face a doubling of their mortgage payments. That will happen and when it does, we really will see debt in its most evil form.
The 2008 crash has been strange as the destruction that it has caused has not wrecked havoc across the population to the expected extent that was predicted. In fact, many households have seen constant increases in income. That’s because the UK Government has protected households and controlled the Bank of England. But this can’t last as the money is getting tighter month by month – when it runs out and it will, this will be the time that debt soars on the back of interest rate hikes.
For help and advice contact TaxGone today.