Only last week, I saw a wealthy client who is very successful in their career but who is also carrying an eye-watering six-figure unsecured debt pile equivalent to their annual take-home pay. This can mean monthly payments of well over £3,000, depending on if they’re juggling credit cards, moving around and chasing that elusive 0 per cent interest.
Worryingly, there are huge swathes of people, like my client, organising their finances on a whim. The client said in our meeting : “Inflation is falling and interest rates will be cut soon.” Everyone in this position claims they are going to cut back. Whether they actually do remains to be seen. Many are in denial and just loading up their credit cards rather than sucking up a drop in their standard of living.has gone up 30 per cent, my gym membership by 10 per cent, my rail fare five per cent, and while I don’t always look at the individual cost of the food I buy, I am aware the inflation is double digit for many items – and these are the things I can see.
Many think inflation is driven by consumers demanding the latest of everything, while others think wars and natural disasters affect supply and push up the cost of production. .