Britain: People Find It Difficult To Pay Off Loans…

India lives at two levels. Urban India is enthusiastically chasing a mirage that Western style consumerism holds the key to happiness. But nearly 70 per cent Indians still live in villages or small towns where contentment, and living within one’s means, is still the prevalent traditional mantra. What is best option for an average person with limited means? The debate goes on…

Many people in big “rich” Western consumeristic societies have now begun to tear their hair as the big bubble seems about to burst. Says The Times of London: “Almost 600,000 people (in Britain) will be unable to refinance their debts this year after finding their usual lines of credit cut off, forcing them to go bust or sign expensive ‘bankruptcy-lite’ agreements.

“About one million Britons are struggling with £25 billion of unsecured borrowings that they cannot repay – ‘problem debt’ averaging £25,000 each – according to a report by TDX Group, which provides detailed debt-collection information to banks. TDX said that last year 400,000 people remortgaged or applied for new credit cards or personal loans to pay off old loans.

“A further 300,000 people took more dramatic options to escape their debts, such as bankruptcy, debt management plans or individual voluntary agreements (IVAs). IVAs are called bankruptcy-lite because they involve the creditor, usually a bank, accepting a reduced sum to be paid off over a set period. Debt management plans are a higher-risk, unregulated form of IVA.”

And then there is the prospect of looming unemployment…click here…

Asks a reader of The Times: “Whilst every bankruptcy or IVA is a personal story, there is a bigger question for society to ask: What are the social implications for a society that has grown fat and complacent on unfettered consumerism?

“Could it be strikes, lawlessness and general disorder in our neighbourhoods. We have a whole generation that have never had to be content with less and able to value things by saving for them.” — Steve Marchant, Broadhempston, UK

Point worth considering…