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SELL YOUR HOME QUICKLYConsumers buckle under the pressure of rising costs
Worldwide, inflation is hitting consumers hard. The cost of basic necessities such as food and fuel have reached all-time highs in many regions, and consumers are forced to dig ever deeper and even sell property as prices continue to soar.
In an article which examines the far-reaching effects of inflation on local and international markets, Hamish McRae of the Independent explains that the more prices rise, the less chance there is of interest rate cuts. In the West we see the impact of rising food, energy and raw material prices at the pumps and in the supermarkets, states McRae. This is dragging up prices more generally and curbing the scope the central banks have to cut interest rates.
What does this mean for UK homeowners many of whom are already struggling to make ends meet each month? Well, it means that greater chunks of their income are being spent on essentials as well as on mortgage costs, which, as a result of the credit crunch, are continually rising. Rapidly and significantly rising costs have resulted in many consumers falling into debt as they struggle to keep up with their financial commitments. More and more homeowners are losing their homes to repossession despite the fact that, ironically, houses seem to be the only commodity not increasing in price at present.