Friday, 20 February 2009

Nation of borrowers - the recession, a harsh lesson!

Everyday I sit and watch the news, everyday I listen to them talk about the dramatic rise in unemployment and how we are sinking further and further into recession. It is quite depressing, but can't help thinking it has been a long time coming. We have become generation debt, borrowing way beyond our means not giving a second thought to the future. Saving seems to have become a thing of the past.

I was brought up in an environment where if you wanted something, you saved for it, none of this 'get it on credit' malarkey! Yes, okay, a mortgage is different, most people have to borrow to buy a property, but when did it become the norm to fully kit your house with all of the latest technology, purchase a car that is way beyond your price range, and to hit the shops regularly not giving a second thought to sticking it all on credit card? It seems that we have adopted this notion that nothing is too expensive once you break it down into nice manageable monthly payments.

But now the shit has well and truly hit the fan (for want of a better expression)! I think we can all agree that we are smack bang in the middle of a recession now, countless companies are going bust and unemployment just continues to rise and rise. Let me tell you, the dole barely covers basic living expenses let alone covering all of your debt!

Times are hard but lets hope that as a society we learn something from this economic crisis. Hopefully the recession will bring with it a new trend where people borrow only for necessities and save for luxuries.

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