What Crisis?

Apparently we are in an interest rates crisis and we are asked not to panic. All the focus has been on mortgage repayments putting the squeeze on families. The way people whinge, whine, gripe and moan you would think that the world is at its end. Reality is that most people really feeling the pinch have over extended on their home loan in the first place and/or went nuts on the credit card over Christmas. Now that Christmas has become overly commercialised it has become the whipping boy for those struggling to pay off those credit card bills. Not to mention all those interest free deals that makes people feel like they can afford the biggest entertainment system available. But when they can’t they are slugged with interest around 24%.

So now it’s time to stop over spending and start over saving. This might mean drastic action, such as cutting the plastic in half. Want interests rates to go down? Then it’s time to go without some luxuries and put that money into a savings account. People seem to forget that interest rates for savings accounts also go up.