Financial news categories
Financial news archive
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009
- May 2009
- April 2009
- March 2009
- February 2009
- January 2009
- December 2008
- November 2008
- October 2008
- September 2008
- August 2008
- July 2008
- June 2008
- May 2008
- April 2008
- March 2008
- February 2008
Consumers taking out loans 'to keep up appearances'
22 April 2008
Concerns have been raised that Brits are taking out loans and spending heavily on credit cards because they wish to be perceived as middle class.
According to the latest figures, those who earn a salary of £23,000 – the average working class income - are borrowing beyond their means in order to own expensive cars and homes.
Yesterday, the Bank of England said that it planned to put £50 billion towards bailing out the mortgage lenders and brokers yesterday who have been forced to up rates on their loans.
But homeowners are being warned that the cot of home loans will continue to rise despite the cash injection.
Richard Morea, of brokers London & Country, told the Guardian: "We are all going to need to get used to paying higher interest rates and higher fees."
Low earners are advised to seek financial advice rather than continue to borrow money to keep up with repayments and day to day living costs. 
