Mortgage Debt Prompts Think Tank To Demand Policy Overhaul

The increase in debt in the UK is becoming a real problem. Thousands of people are in a precarious financial position, and the situation will only intensify without sustainable solutions as time moves forward. How, then, should the government’s economic policies reflect tangible resolutions and a refocus on tackling the mounting debt of a country in crisis?

Mortgage Debt Prompts Think Tank To Demand Policy Overhaul

The Resolution Foundation

The Think Tank in question is the Resolution Foundation. With primary focuses on these unique challenges, the Resolution Foundation has published a report titled Built to Last. Within this analysis lies a constructive and insightful dive into what the significant challenges facing economic stability are and how, as a country, they can be overcome.

Whether this is possible is a question as old as time itself. For everywhere you look, there have been noticeable crises regarding debt, which has only served to exacerbate the current situation. It is the Resolution Foundation that has noted how the UK’s debt burden will put pressure on its capacity to recover.

Higher Inflation Challenges

Of course, the biggest challenge to note is rising inflation. Challenges like this are not unique throughout history but are certainly posing a threat to the sustainable finances of ordinary people. With higher inflation comes mortgage debt, as households struggle to afford everyday basics. The Bank of England’s stance is to raise interest rates to compound inflation. While people may outwardly presume that lower interest rates are the obvious answer, this, says the foundation, is not necessarily the miracle cure we’ve been hoping for.

Read more: Are Interest Rates at a Peak? What it Means for Homeowners

Key Insight

What are the key takeaways from this report that need to be at the forefront of discussion? Firstly, that a complete upheaval of the macroeconomic concepts that currently guide the economic trajectory in Britain is a top priority. Secondly, a refocusing of energy on supporting models that actually yield positive results is non-negotiable. They cite countries such as Sweden and Denmark which work not with lower interest rates, but negative ones to support a gentle coming to pass of debt relief, and it is nothing that can or should be ignored. To avoid a complete shutdown and spiralling of a debt related crisis, the country is better off moving into a budget surplus, governed by an approximately 1% rise to tailor the impact in the most beneficial way possible.

Further Analysis

Further to these claims, there is also a call for protecting those structures that are already in place and completely vital to the country as a whole. For instance, vital services like defence and even public transport. Is this possible? In some ways no, but in many others yes. The question, as ever, depends on what comes next. To achieve this complete shift in direction, there must be a compelling and informed deviation from the current pathway. This is only ever going to happen if advice such as this is taken on board and absorbed in the general mindset of leadership. Budgets, inflation, and economic strife are a hot topic and it demands due respect, care, and attention. There is much to be done and little time to put things into action that will have a profound impact on how things play out in the near future. Britain is all to play for, and the key players need to up their game.

Britain in Debt: Seeking Sustainable Support

If the debt crisis has adversely affected your personal life, there is help to be found. We are in a primary position to facilitate support and all it takes is opening up the conversation. There is no doubt at all that changes must be made in order to secure the financial well-being of the country as a whole, but it is the individual who also suffers in the meantime. With the significant rise in repossession debt, help with repossession is something a lot of homeowners are looking for. Losing one’s home can be a traumatic experience that has a long-lasting impact on a person’s state of mind. Therefore, seeking help is a must-do and beneficial to everyone involved in the process.

The Resolution Foundation’s analysis makes one thing plainly clear. That is, a country that has no definitive leadership in terms of economic direction will only suffer more. While inflation rates are being poorly handled, there will only be further hardship. To rectify this and reset the course of debt, there needs to be a shift in mindset and policy, guided by insightful analysis as opposed to minimalistic hoping.

Facing Repossession?

Facing repossession can undoubtedly be challenging both financially and emotionally. If you’re in this situation, contact the HMS team today on 0800 298 0571. We’re available 24/7, and it’s never too late to get the support you need and stop repossession of your home.