http://www.accountancyage.com/accoun...ents-insolvent
10% of Uni graduates are going Bankrupt and walking away from their debts. This will be 20% in a few years time.
The US mortgage situation is hardly fraudulent. With interest rates at 1% the banks were falling over themselves to give huge mortgages on teaser rates to rednecks and vagrants who would never be able to sustain them. The banks didnt care. The banks CAUSED the current crises. My heart does not bleed for them.
This situation in the UK is little different. Instead of Sub Prime we have Lie To Buy (Self Certification) and we also have Buy To Let whereby people of modest means and intelligence are encouraged to make highly geared speculation on property. Now that the property prices are coming down and rents don't even come close to cover the mortgages they will all have to sell all at the same time and all for a heavy loss. Again, the Banks caused this by lending recklessly.
But this is by the by.
You can still get two credit cards with £8k limits, still get a £2k overdraft and still get a pre-approved any-puropse loan for £20k all in an afternoon if you have a clean history and an average wage job.
£38k is enough to cover the modular PPL CPL Multi and IR.
If you are young and have no ties then there is very little stopping you going bankrupt. It won't stop you getting a job in a years time nor will it prevent you getting a mortgage in a couple of years time.
Rubbish system. But its the one this Government bestowed upon us and people are totally rational and logical in their exploitation of it.
Cheers
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