Banks to tell hard-up borrowers what to spend their money on
Are you in debt? Of course you are. We're all in debt and it's rubbish. Still, at least you've got little pleasures like satellite television and a mobile phone to distract you from the horrible pit of financial despair that you teeter along just before payday.
Wait! What's this? Some state-owned swines are going to tell low-income borrowers what they can spend their pennies on, telling them to stop having Sjy TV, having a mobile phone, even going as far as to ask them to stop socialising altogether.
Or you'll lose your home.
UK Asset Resolution, the organisation set up to manage £80bn of home loans made by Bradford & Bingley and Northern Rock, has identified 30,000 customers who could get in bother when interest rates rise and so, unlucky staff will be tasked with the job of ringing 2,000 customers a week over the next few month asking them to change their spending habits.
Richard Banks, the chief executive of UKAR, says:
“Some people won’t cope when interest rates rise, but for others there are remedies. They need to think about what is their most important debt. It’s not the credit card, or renewing their Sky subscription, or going out or the latest mobile technology, it’s their mortgage."
"They have been protected by low interest rates, but the consensus is that rates will start to rise late next year. We are taking a much more pro-active stance"