In Focus Consumer Credit
Borrow now, more later
Is there a case to be made that the UK should keep on borrowing?
Arthur Kaufman Independent writer and speaker
arthur35art@hotmail.co.uk
It goes without saying that reputable banks and credit firms do not want individual clients to borrow more than they can afford to pay back within a reasonable time, since it is not in the interests of either creditors or debtors, particularly the latter? But before you ask “explain why”,
remember that on a national level, it is acceptable to borrow in multiples of billions extending into the trillion range, with the number of digits increasing accordingly, leaving the question of how many more noughts will be added in the foreseeable future or not 'before too long’, neither of which is of much use when trying to predict just when the actual 'when' will occur.
No full stop As for the currently corvonarised UK, it looks that its latest debt load is breaking all records, but with no sign of society coming to a full stop, or by a sudden rush on wheelbarrows
to carry enough cash (or wallets full of credit cards) for purchasing essentials items. Luckily the fiscal wagon is still running
on four wheels, although how long its horse power will hold out is uncertain because the country will soon be so deep in hock and in danger of being drawn into a gigantic redder than red hole where even the most minute quark cannot escape from. If the UK can obtain as much money just
when it decides to, why not the same for its regions, its counties or its cities large and small? I suspect that most economists or bankers – especially the latter who, it is alleged, got us into the 2007-2008 debacle – might offer us ready-made reasons why this cannot not be done, even though they would not openly object to the government accruing an expanding universe of sovereign debt. The way things are at the moment, it
seems the advice of astrophysicists could prove more helpful instead.
I suspect that most economists or bankers – especially the latter who, it is alleged, got us into the 2007-2008 debacle – might offer us ready-made reasons why this cannot not be done, even though they would not openly object to the government accruing an expanding universe of sovereign debt
Prior to Covid Interestingly enough, prior to Covid-19, the government was becoming increasingly concerned about the worrying rise in personal debt, when the nation's financial state was apparently affected by, on average, how much each of us owed when credit and instant loans were so readily available. Even worse, there was lots of advice on
how to how to apply for more, including by smart tapping into smarter devices in order to pay off an existing balance at an enticing offer, entirely free of interest to begin with! Still, the monthly statements of balance
due would not go away, no matter how sophisticated the electronics, nor would the likelihood of having to ask for more, sooner or not much later.
Incomprehensible What seems odd, if not incoherently incomprehensible, that the UK is able
September 2020
www.CCRMagazine.com
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