An Observer article, 30 July, quotes the Joseph Rowntree Foundation which has data that shows that 2.3 million low-income families have reported taking out loans or using credit to pay essential bills during the ongoing capitalist cost of living crisis. With another expected interest rate rise possibly in the offing there are concerns about ‘a “time bomb of debt” among poorer households’.
Are we about to see another plethora of advertisements through various outlets for the loan companies whose interest rates run into three or four figures?
The article says that, ‘Nearly 6 million low-income families have unsecured debt, such as credit cards, overdrafts and personal loans from banks, credit unions and payday lenders. In May this year, they owed £14.2bn in total. Interest on this debt was £3.9bn, equivalent to about £675 a year per family’.
Further, ‘Using credit to pay bills is not preventing households from falling behind with payments. Three-quarters report arrears with at least one household bill or lending commitment, with 44% in arrears with three or more bills. Meanwhile 2.8 million low-income households said they had been refused a loan between May 2021 and May 2023’.
Those running charities aiming to help, one way or another, those burdened down with overwhelming debt problems ought to get themselves off to SpecSavers because the same myopic ‘solutions,’ which are not long term solutions, are being trotted out.
StepChange, a debt charity says, ‘ “It is crucial the government continues to uprate benefits with inflation and looks for ways to increase income for the most vulnerable households, for example by stopping unaffordable deductions from universal credit to repay government debts.” ‘
The government said, ‘ “We know people are struggling with rising prices, which is why we are delivering support worth on average £3,300 per household, (citation needed) uprating benefits in line with inflation and have increased the national living wage.
“We have invested a record £90m to support free debt advice in England and our Breathing Space scheme gives those facing financial difficulties space to receive debt advice, without pressure from creditors or mounting debts.
“Deductions help to protect claimants from enforcement actions such as eviction, make sure priority debts like child maintenance are addressed and recover money when overpayments are made.”’
For those whose lives are desolated by the nature of capitalism there are other costs which add to the existing pressures: mental health issues, damaged relationships, and removal of the ability to live life to its fullest.
As the blessed Margaret Thatcher once incorrectly remark, there is no alternative. But there is. It’s Socialism, a money-free, class-free society free access to goods and services will consign this blight to the dustbin of history forever.
The wage slave is just as much excluded by his position as the slave proper from being a debt slave, at least in his capacity as producer; if he can become so at all, it is in his capacity as consumer.
ReplyDeleteCapital 3, p.730. Pelican edition.