Debt management problems 'dividing young and old Britons'
Debt management problems 'dividing young and old Britons'
Monday 6th April 2009
Writing in the Daily Mail, the Liberal Democrats' Treasury spokesperson explains how the recession has worsened the financial situation for different age groups in contrasting ways.
According to Mr Cable, the majority of the country's younger adults want low interest rates to ease the pressure of their personal borrowings and offer relief for their mortgage debts.
Conversely, many older people are unlikely to have major debt problems and instead want higher interest rates to boost their savings, thereby supplementing their pensions.
"These concerns are pulling generations in opposite directions," Mr Cable writes.
He continues: "Lower interest rates are a great boost to families on tracker mortgages and for companies struggling with business costs, but are bad news for many older savers.
"Inflation is regarded with dread by pensioners on fixed incomes who are painfully aware of the rising cost of food, but helps families with heavy mortgages cope with their debts."
The Liberal Democrat calls for more "long-term thinking", as well as better state pensions to provide a solid financial basis for older people, in order to prevent the gap between generations widening further.
Lauded by some commentators for his accurate predictions of economic chaos before the credit crunch, Mr Cable now published his book The Storm: The World Economic Crisis and What It Means.
It has been described as "a lucid guide to the present mess" by the Sunday Times.
News article brought to you by Debt1 - UK debt management specialists.
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