The average unsecured debt per household in the UK is around £14,500. You’re right, if interest rates go up there are a lot of families with no contingency plan. There are also people out there with large interest only mortgages and no pension provision.Too many people are mortgaged to the hilt with credit card debt and cars on finance.
Even rates at 3.5% would put many young families in a financial spin.
The last few governments have allowed us to get addicted to cheap credit.
A short sharp shock now could be catastrophic for lots of people who may appear outwardly well off but are in fact living life on credit.
they’re living the dream though!