It takes a few months for most people to realise that the huge jump in their mortgage payments or rent means less money for everything else. They plead with their finance company, and maybe get a small reprieve however, the time comes when the REPO TRUCK turns up and takes their shiny, new, heavily financed wheels away to be auctioned.
Trouble is, the midnight snatch n’ grab rate is skyrocketing; up over 15% same time last year, which was not that flash to start with.
People are behind on their car payments in staggering numbers. Methinks the government controlled media hacks are being told to tone down the narrative lest people get scared. Well they should be scared and learn to ‘stress test’ their purchases and ask themselves, for instance, “What if the interest rate went up to ‘X’ ? Would we be able to afford all this stuff on the never-never?”
People are generally dumb with money and make no such assumptions and now we have this rapidly developing situation.
I normally spend a lot more on a car in England when I decide to drive around Europe like a maniac. I have reined in my spending ‘just in case’ and I am a cash buyer. Now that’s exercising discretion and prudence.
Gordie's Travels 