One of the consequences of the rising rate of inflation and the cost-of-living
crisis is a resort by many people to getting enmeshed in debt. Credit card debtstands at £65 billion, rising from £54.9 billion in 2022. Mortgage debts stand at£1,457 billion up from £1, 349 billion from the previous year. Consumer debt hasrisen to £147 billion from £141.5 billion in 2022. Student loan debt is up to£181.6 billion from £140.1 billion in 2022. ---- In addition, payday loans andutility bills debts have shot up. These are all according to figures supplied bythe Bank of England, the personal finance firm AJ Bell, and the consumer lenderFluro. ---- The Covid pandemic put many in a shaky financial position, and highinflation, rising energy bills and food prices have aggravated this further.There was a 22% increase in requests for loans in April 2023 from the previousApril, and a 29% increase in loans requested by homeowners with a mortgage, dueto rising interest rates. The Office of National Statistics reported that 1.4million homeowners have their fixed-rate mortgage deals expiring this year, withmonthly repayments rising massively. These fixed-rate loan deals were mostlyfive and two-year deals taken out in 2018 and 2021 respectively when mortgagerates were at all-time lows at around 2%. A succession of eleven rate rises bythe Bank of England since December 2021 means that fixed-rate mortgage rates nowstand at an average 5.28 % for two-year deals and 5% for five-year deals. TheBank of England did this in attempts to slow down inflation.This situation is also reflected among renters with an 18% increase in loanrequests. A recent report from Zoopla showed rents rising by 11%.More than 1 million people borrowed money from loan sharks in 2022 up from310,000 in 2010, according to the think tank the Centre for Social Justice.https://www.anarchistcommunism.org/2023/07/01/building-a-debt-mountain/_________________________________________A - I N F O S N E W S S E R V I C EBy, For, and About AnarchistsSend news reports to A-infos-en mailing listA-infos-en@ainfos.ca
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