Forever in your debt - Councillor's Corner by Cllr. Bambos Charalambous
28th December 2016
I recently came across a truly staggering fact;
In October 2016 the International Monetary
Fund (IMF) estimated that the total global
debt owed other than from the financial
sector is $152 trillion which equates to 225%
of global gross domestic product or, to put it
another way, enough to buy everything in the
world twice over! Much of this debt is
personal debt.
With Christmas and New Year fast becoming
a distant memory the financial excesses of
the festive period become very real in
January when, like a bad hangover, the bank
statements and credit card bills start landing
on our mats.
Charities such as The Money Charity have
calculated that the average national debt in
the UK per person is £29,862 which is 13.6%
more than the average national income.
Another charity, Step Change, state that the
credit cards, overdrafts and loans account for
a large amount of their clients’ money
worries with Council tax and utility bills also
a concern. Another staggering fact is that
£26.3 billion was spent last year alone just
paying off interest on credit card debt in the
UK!
With the easy availability of low credit and
the clever marketing of consumer goods it’s
not hard to see how people fall into the trap
of wanting the latest must have fashions,
gadgets, computer games, box sets, etc.
We’ve probably all been seduced by good
marketing at some time or other. However, if
interest rates and inflation begin to rise as
expected then many people will begin to feel
the pinch and that’s when the problems
could begin.
Aside from the stress and fear as to what will
happen if you cannot pay your rent, credit
card bills, utility bills etc. there is the
practicality as to what you will do when you
are in debt up to your eyes. Thankfully there
are some amazing organisations that are
able to help people in these situations.
Nationally we have the National Debtline
which is a government organisation with a
help line number and very user friendly
website. Locally we have the Enfield Citizens
Advice Bureau which does some remarkable
work in not only getting various large credit
and utility companies to agree to defer or
even waive payments but also in advising as
to how people can maximise their income
and learn how to budget.
The desire to live outside our means is,
however, a state of mind and unless we
address that it is likely that our addiction to
low credit will stay. Despite cheap food and
clothing chain stores booming at present it
seems that we are still spending much more
than we need to. Two practical bits of advice
I try to apply in my life are to be as best
informed as you can be about what you are
borrowing and spending money on and
secondly to question why I am buying
something. If we don’t address our
indebtedness it is likely to negatively impact
on our lives especially if rates rise and who
knows, perhaps even lead us into another
financial crash.
Cllr.bambos.charalambous@enfield.gov.uk
Tel: 020 8379 2653
Cllr Charalambous writes regularly in our
Palmers Green and Southgate LIFE
Estate Agents magazine, pick up your copy
from our offices on Green Lanes.
