New year could see debt 'tipping point'

Have a read of this article from the BBC website regarding 2007 being a negative tipping point for the debt-ridden.

I seem to remember that such articles have been something of a mainstay of the past, oooooh....five years. Many have been waiting for the housing market to crash and indeed, many have predicted it will do so over the last half decade or so and been proven utterly wrong.

It has to come eventually though, as residential property is ridiculously overpriced, personal debt is higher than it's ever been, interest rates are on the up, utility prices have risen beyond the capability of the working man to keep pace (That's the average working man, not the working man in the City or elsewhere who are being paid extortionate amounts) and the general public mood regarding our finances seems to have already reached a tipping point of its own.

It's a mood that is reflected in the tightening of belts, a desire to clear debts and save cash instead of spunking it up the wall. Of course, there will still be a sizeable number who carry on as if the good times will roll on forever, continue to draw equity from their property and/or carry on racking up the credit card debt, but as far as thedacs can see the mood is changing.

Whether the greater awareness of environmental issues has come into play (Even slightly) to affect that mood I dunno generally, but personally speaking, knowing that a light left on, a phone charger left plugged in or the heating whacked up while a window is open costs me money for no gain has led to a desire to cut down on the excesses.

That desire to conserve has spread into other areas and thedacs have ensured that no credit was used to finance Christmas (Which was a bit of a struggle with the current accounts left almost empty and a long time until January's pay arriving) and 2007 will see us clearing C's credit card and Uni loan.

It's almost as if we're expecting worse times around the corner. Maybe we can smell it in the air or maybe it will become a self-perpetuating prophesy, but i'm pretty sure that 2007 won't be as rosy as the past decade.

If it means the housing market slumps then I can't get too worked up as we have no stake in that, and on present trends never will. If the general economy gets into trouble then obviously it's going to be difficult even if we hold onto our jobs, but we'll survive easily enough. Many won't but that's because they've over-extended themselves and will get no sympathy from this quarter.

Maybe i'm just a pessimist though. The Government would certainly say so, but then their figures for the economy don't ever seem to reflect our situation and many others I suspect.