• From This is Money:

    It fears that households who have failed to pay back debts could be pushed to the brink should the economic recovery falter.
    Under greatest threat are credit-hungry families who use credit cards and loans to keep up an affluent lifestyle, and young professionals who borrowed many times their income to get onto the property ladder.
    In a bleak analysis, the Financial Services Authority forecast that any rise in unemployment, interest rates or a further crash in property prices could drastically slash the already stretched incomes of many middle class families.
    This would lead to them missing mortgage repayments, and eventually losing their homes.
    It will come as a timely warning to thousands of homeowners. Yesterday, it was reported how more than a million desperate borrowers are applying for credit cards with interest rates as high as 60%.
    Many economists believe interest rates will start to rise at the end of this year. And this month Halifax and Nationwide both reported falls in…

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    Posted by Jon @ 12:00 pm

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