Cheap money in the UK

In the most general terms markets are perhaps becoming volatile and investors more risk averse but money has been and is still extraordinarily cheap. Consequently, as the Guardian reports that bankruptcies in the UK are on the rise.

Especially the distinction between secured (long term) debt and unsecured debt is important yet mortgages can also hurt the private economies if rates go up or the housing bubble (to the extent there is one) bursts.  

 (full paste of article below)

"A million people in Britain could be on the verge of bankruptcy, while one in five adults - or eight million - have unsecured debt of more than £10,000, according to a report out today. Research by YouGov for debt consultancy Thomas Charles suggests 1.7 million people often struggle to meet their debt payments. Nearly a million of those could have problems meeting their obligations every month.

Bank of England figures last year showed the amount of personal debt in Britain had broken through the £1 trillion mark, with people encouraged by low interest rates and the easy availability of credit. Much of that debt is mortgage, or secured debt, but a growing proportion is unsecured credit card or overdraft debt.

A million people in Britain could be on the verge of bankruptcy, while one in five adults - or eight million - have unsecured debt of more than £10,000, according to a report out today. Research by YouGov for debt consultancy Thomas Charles suggests 1.7 million people often struggle to meet their debt payments. Nearly a million of those could have problems meeting their obligations every month.

Bank of England figures last year showed the amount of personal debt in Britain had broken through the £1 trillion mark, with people encouraged by low interest rates and the easy availability of credit. Much of that debt is mortgage, or secured debt, but a growing proportion is unsecured credit card or overdraft debt. "