Friday, 11 December 2009

Pay now and pay later

YEP budgets were all the talk of the town. You know the feeling, it’s coming up to Christmas, the kids want the new toys, but you have to cost out the price of the a Nintendo Wii or Playstation 3 against whether the family will be able to eat in January….oh you were thinking of the other budgets?

Well that’s all right then. Here we were thinking you were thinking of taking out a new credit card as you’ve maxed out that other credit card and are up to your overdraft limit. Should your bank manager query this tactic, explain in small words of no more than two syllables…if it’s good enough for Government its good enough for me. Please don’t throw in a jibe about how as a taxpayer you own a stake in the bank, they get all huffy and start mumbling about bonuses.

The Pre-Budget Report came along with a confusing welter of give and take, some things you get now but won’t get in two years time, some things that might help, and some things that won’t. And the reassurance that all will be well as the money markets are still giving the UK a Triple A rating on creditworthiness. Isn’t that how the average punter got into a mess in the first place? Up to your eyes in debt? Just get another loan….but that’s where we started from.

To sort it all out get two economists in a room. The middle ground of where they disagree is right about where the answer may lie!

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