Are we conditioned into accepting personal debt today?? Personal debt in the UK, as of 1st November 2007 stood at $1,380billion, with total consumer credit lending to individuals in September standing at £217bn.
Frighteningly, Britain's personal debt is increasing by £1million every 4 minutes.
It seems like we all exist on credit cards, that we're all doing it and that universality seems to makes it okay.
These days, there are even children's credit cards available, for teenagers with the bills going to the parents.
Sowe're catching the habit earlier and earlier, encouraged of course by our friendly local bank! Even the media sell debt to us, by making us think we're not that badly in debt.
There are now a plethora of TV programmes that show us overspenders, or 'spendaholics'the cuddly media phrase for these people who have out of control debt issues.
It's a bit like feeling fat and overweight and then you see someone morbidly obese and think, 'Well, okay, maybe I'm not so fat'.
How can another's person's problems lessen the impact of your own? Recent reports show that 3 out of 4 Britons worry about financial pressures,with 3.
4 million saying that money is the biggest concern of their lives.
, with nearly a fifth worrying about money on a daily basis.
77 properties a day were taken into possession in the fist six months of 2007, this is 30% higher than the same period in the previous year.
Mortgages arrears of three months or more, rose to an estimated 125,000 at the end of June 2007.
8.
2million Britons are in serious debt, and over 2 million are struggling with repayments.
18% of British adultshave £10,000 or more unsecured debt.
This is a rise of 30% on last year.
So personal debt is acceptable? No it's not, but neither the government nor the banks are doing anything to stop the relentless rise of debt and the misery it causes.
Why is it rising so rapidly.
Well, it due to the Rule of 75, or compound interest as it's also known as.
Most banks, credit card companies and loan agencies lend you money using compound interest, because it makes them so much more money back again.
When you incur the loan, or spend on your credit card, interest is earned on interest from that moment on! I'll write an article specifically about compound interest later.
So, why can't we seem to get ourselves free of debt? Lack of resources is a big part of it.
Because so much of the average household's income goes on servicing interest on the debt, they cannot even begin to pay off the principal of the loan.
The average interest paid by each household on their total debt is approx.
£3,718 each year, equating to 9% of take home pay.
That's 9% of your wages just to cover the interest on your personal debt!After your salary has been taxed, you then spend a fifth of your take home pay on the interest on your personal debt.
Aren't you horrified? Personal debt is a huge problem in both UK and USA, and it's growing.
However if you truly have had enough and want a way out, a method that will get you out of debt quickly and permanently, then look to the Ultimate Entrepreneur, a financial programme the like of which you've never seen before.