The Government hope that the latest cut in interest rates will help to “Jump start” our beleaguered economy. The trouble is, much rot has already set in and confidence levels are extremely low. For any noticeable improvement in the economy, what we need is confidence bolstered by genuine trading and not financed on credit.
At Sterling Trust we have seen a noticeable increase not only in the number of debt enquiries, but also the increase in a lot of the debt levels, the crossing of socio-economic boundaries and the severity of action being levied by creditors and their collection agents. Basically, more people are more hard up and getting more flak because of it!
People are for once becoming aware of just how much trouble uncontrolled debt has got them into. For long enough creditors and retailers have been pushing cheap credit down the throats of the masses saying, “Buy now and pay later.” In reality it has become a case of “Buy now and pay forever!”
The country as a whole needs to concentrate on generating reasonable levels of sustainable wealth based on productivity and NOT speculation in global markets. “Chasing the dragon” where the dragon is profit, has become a global phenomenon and favourite pastime of the nouveau riche in our society. Now they may actually have to learn to knuckle down and do some proper work to earn their keep!
The UK can become in many ways self-sufficient and needs to look at leading the world out of recession (if we’re allowed to call it that yet!) by example. This once great nation can become great again and show the rest of the world how to manage their economies. All sustainable growth has to be based on tangible assets and commodities, not intangible, fickle and transient capitalist, greed fuelled daydreams.
The whole structure of commerce has been shaken to its roots and needs to be rebuilt in a dynamic way that can cope with change and market frailties. Paying CEO’s millions of pounds a year merely to sit on a board and have no meaningful input into a company’s survival or growth is an outrage, but has become the accepted norm. Everyone will now be in the spotlight as businesses look at where the hammer should fall. Many will not survive at all, as witnessed by the fiascos with Northern Rock, HBOS and more recently Bradford and Bingley.
Debt is not the way forward and a close look will have to be taken at wages, profits, how those profits are distributed and what they are used for. Cash rich companies and individuals are the only one’s likely to come through these troubled times unscathed. These people may feel the pinch, but can if needs be tighten their belts. For many, due to borrowing heavily and getting into uncontrollable debt, they have already honed expenditure to the bone and have nowhere to turn.
There are many tips and ideas on our website for helping people to try and save money, as well as an interactive debt management facility for those who need extra help in managing unsecured debts. This includes such things as credit cards, personal unsecured loans, overdrafts, store cards, catalogues and door to door collectors.
Visit www.sterlingtrust.org.uk for more information. It’s a totally free charity site, so there’s absolutely nothing to lose and possibly everything to gain!
