Household Debt soars
Household debt is a topic that is increasingly on everyone’s lips and Mark Carney, the Governor of the Bank of England, has recently weighed in on the subject. Carney spoke out about household debt, describing it as an ‘indirect threat to the economy’. He also admitted that rising levels of debt will have an impact on the severity of an impending recession.
In order to avoid racking up household debt, homeowners are encouraged to be more responsible with their spending habits. With car finance climbing as it is in other big UK cities, using a company which provides finance to people with bad credit history is a good way to ensure that homeowners can still afford to buy a car without getting into financial difficulties.
According to the BBC household debt is at its highest levels for five years, with the average home owing £11,800. This, many claim, is a sign that problems in the economy still need to be addressed.
Homeowners with bad credit history find it increasingly hard to get hold of much-needed loans, which is why many turn to specialist companies offering deals to those with bad credit history. An online search will bring up results for a specialist loan companies and it is this type of car finance specialist that people with bad credit ratings need to turn to in order to ensure they can afford to own a car without getting into debt.
According to The Guardian one of the biggest problems is that many people fail to realise how much debt they have accumulated until it has spiraled out of their control.
Some of the things that people tend to spend on is home improvements which in some ways can actually be an investment. If your adding a driveway, building a conservatory or getting your roof done with a Roofer Gloucester way at sites like gloucester-roofer.co.uk/ then this could help you in the long run. After the recession in 2008, many households reduced their debt and the government spent more to run large deficits to offset the financial crisis. However, the government is now cutting public spending in order to meet a budget surplus by 2019-2020, which means households are accumulating more debt to maintain consumption.
Slowing the mortgage debt bubble is key to reducing the amount of household debt in the UK and this can only be achieved with effective social support and increased wages.