You cannot fail to be aware of the mounting crisis in the economy. The Bank of England has now cut interest rates to the lowest level ever at just 1%, in a bid to get people and businesses to spend more money.
The problem is that whilst many people have the advantage of lower mortgage payments, the cost of personal loans and credit cards is actually rising.
MBNA the largest provider of credit cards in the UK has been raising its rates steadily for months and many of their customers are finding that when the 0% rate finishes on new cards, the APR is suddenly 36% or more, much higher that advertised when they originally took out the agreement.
America Express has been doing the same thing with its customers, with interest rates as high as 46% APR, when they started at less than 17%.
Business failures are running at almost 22,000 for 2008, the highest level since the recession of 1992, with a much higher level expected in 2009.
The Financial Times today reported:
“The number of people who declared themselves insolvent was broadly the same as in 2007, at 106,544. This equates to around one in every 400 adults.
However, there was a sharp rise in the fourth quarter as 29,444 individuals declared themselves bankrupt or took out an Individual Voluntary Arrangement – up 18.5 per cent from the fourth quarter of 2007. This suggests that the numbers are likely to increase in 2009 as unemployment rises, placing further strain on over-indebted consumers.”
What does this mean for ordinary people?
In simple terms it means that the cost of unsecured debts like personal loans and credit cards is rising, whilst people ability to pay them is declining.
The only real advice for people is to get out of debt and build up the security of their income.
There are several way to secure your income, firstly, it is advisable to diversify your income sources, this can mean taking on a second job, or starting your own part time business working from home.
Obviously you need to make sure that you are able to keep you full time job, so you must be careful how you decide to create income, for example, if your current job finished at 5:30 and you take on another job starting a 6pm and finishing a 2am, you are not going to be able to get enough sleep and general rest, which could have a big affect on you performance at work and the quality of your life.
Therefore choose your work carefully and ensure that you will enjoy it.
When it comes to getting out of debt fast there are a number of options, including getting you personal debts written off. This simply means that the bank decides that they cannot collect the money and so the write it off. If this is done in the correct way it also will not affect your credit rating.
So take action now! Don’t wait until the “stuff hits the fan”, plan now to set yourself free to live your life without fear or stress.
To your future,
Chris
P.S. If you want to know if your debts can be written off take a look at http://www.IDeserveDebtFreedom.com
P.P.S If you are looking for extra income and a way to secure your future, take a look at http://www.IDeserveMoneyNow.com
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