The Debt Nightmare
As people began to lose jobs their tendency to borrow has increased tremendously because during the time of falling salaries this was perhaps the best way to survive. Increased amount of borrowing lead to a debt trap which only got vicious with each passing day.
Governments in every country have stepped in to stabilize the interest rate to maintain a standard level of consumption among the people. However the picture is anything but hopeful.
Income rates in USA has not increased, on the contrary has gone further south. It has been found that the cost of living in UK has outstripped the pensioners annual income. The financial health of Britons has hit an all time low in the past 5 years. People today prefer to use their debit cards in spite of credit cards to save the credit card bills.
Studies show a rise in the personal debt rate in UK, giving rise to speculations that the bank of UK may further announce a cut in the interest rate.
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