This is probably one of the biggest financial problems facing the UK because at some point our financial systems will recover and interest rates will start to rise. On that basis what will happen to those who are in debt up to their arm pits and have incorrectly assumed that historically minute interest rates are the norm and that they will be in the future.
Some people will sadly be ruined.
With thanks to story spotter Roy Connell
The Daily Telegraph has the story, check out the link above.
His analysis of what has happened is frankly pretty much spot on; we have been living on too much borrowed money for far too many years so when the recession hit we were in a poor condition and unable to ride it out without massive cuts in public expenditure.
But of course the present Government is a coalition and one of the partners in that government seems to one that borrowed too much prior to Labour following suit. It wasn’t the Lib Dems so self-righteous Tories must have been borrowing too much as well!