Risk losing your home

Is spending above your means a sensible way of lie? Lot's of people enjoy lavish lifestyles on behalf of their banks, but it can't go on forever. In my opinion the risks outweigh the benefits, especially when you take out a loan against your home and risk losing the roof over your head.

The end of the debt era?

Consumer spending in the UK could be over as far as credit is concerned, with Brits being nearly £1.5 trillion in the red.

Consumer must face up to the banks and not continue spending with their heads buried in the sand, with debt charities seeing a surge of people spiraling past the point of no return and ending up in a state of bankruptcy.

Consumers are stuggling with the ever increasing costs of staples like food and fuel, but for many people do they really need expensive gym membership, sky subscriptions and a flash new car? It is these types of things which many people feel they shouldn't have to sacrifice, but I'm sure their bank manager would disagree.

Homes sales in the UK are still on the rise

Whilst house sale have seen a recovering during 2010, they are still not a patch on the glory days of pre 2009. The number of home sale was up 21% in June compared to March according to HM revenue and customs.

This present a positive outlook as the sales figures are 15 higher than the equivalent period last year. Overall this means that sales during H1 were 21% than 2009's H1. Undoubtedly house sales are still sudued, but they're going in the right direction.

The lenders are a in the mindset that this is the peak for 2010, and they don't expect any further rises like this. The bank of england recently sent out a warning that mortgages might be difficult to obtain in the coming months, and this would echo the lenders concerns.

Let's hope this doesn't lead to a decline in house sales, although it's likely this will be the case.