A SERIES of facts, figures and general comment over the past few days has given me cause for concern.
As a homeowner, I would quite like to see the appealingly low interest rate continue for the foreseeable future.
This is unlikely to remain the case as I fear people have yet to get the message being quietly eased out by those fine rate-setters at the Bank of England's Monetary Policy Committee.
I suppose we should see it as a gentle chiding - 'Now, now boys and girls, don't go spending your money unwisely'.
But, like the child let loose with 50p in a sweet shop, we cannot seem to keep our money in our pockets.
Saving is so unsexy. Splashing your cash on everything from TVs and DVD players to expensive homes and luxurious holidays is much more attractive.
Temptation is the devil and we seem to want to dive headlong into the flaming pit of financial Hades.
Be it mortgages, credit cards or personal loans, our appetite for debt has been nothing short of voracious.
You only have to look at the impressive profits returned by the bulk of the country's leading finance houses to see that lenders are enjoying our blas attitude.
Those in a pickle are in a minority at the moment. But how long, and how many interest rate rises, will it take for that to change.
I read yesterday that, according to the Centre for Economics and Business Research, the number of millionaires could triple this decade as homeowners benefit from house investment.
Owning property has undoubtedly been a profitable move for investors, but with a glut of rental houses, flats and apartments on the market, that money-making avenue could be less lucrative.
Couple that with rising interest rates and you have a problem.
Another piece of research yesterday said the rate of personal bankruptcies for the third quarter last year stood at 9,094 -up 16.9 per cent on the same period a year before. I wonder how that statistic will change if rates rise further.
Economists tell me that a modest rise to 4.5 per cent will not have the greatest impact.
The question is whether or not the children in the sweet shop will have opened their ears to the MPC's scolding by then. If not, a few sticky, little fingers might get burnt.
Published: 02/03/2004
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