THE TELEGRAPH: Watching many British consumers en route to a debt crisis has been like observing drivers of cars with faulty brakes, heading confidently towards the edge of a cliff. When alerted to looming disaster, these debtors and motorists kept giving the same reply: "Relax, everything's in control." Then, whooosh!
Over the past five or six years, cautious voices have warned eager borrowers that they were taking on far too much debt. Just because they could afford their monthly repayments (for now), it did not mean that "maxing out" on credit cards, overdrafts and mortgages was a smart move.
Unfortunately, too few consumers wanted to listen. Those of us who predicted a crash landing were dismissed as Cassandras. We didn't understand the new paradigm. Debt was cool, a financial fashion item. Saving was for wimps. Only fuddy-duddies and stick-in-the-muds didn't have debt.
Now, however, as the price of money rises and the pain of higher interest charges is beyond that which many troubled borrowers can tolerate (100,000 went bust last year), debt is starting to look decidedly démodé, the unattractive bling of bankrupts. The trouble is, we're stuck with £1,300 billion of it - and it's going up by £1 million every four minutes. Blair’s legacy is a nation engulfed by debt (more) By Jeff Randall
Mark Alexander