Post by nickd on Oct 5, 2011 22:48:12 GMT 1
Today, our Prime Minister made his closing speech to conference; - it's been widely reported that he changed the wording over the Nation's debt crisis.
His dilemma; the Nation's plastic..
We all know too many splashed the cash; today our PM reported how people were trying to pay it back; but it's not what he was going to say.
Why the change?
Here's what Dave was going to say...
"The only way out of a debt crisis is to deal with your debts. That means households – all of us – paying off the credit card and store card bills."
But, the Prime Minister's aides changed the wording to this..
"That is why households are paying down the credit card and store card bills."
The Prime Minister's original speech would have been taken by many as a heavy handed instruction when people are already trying their best to pay what they owe. It would also have been aimed more at the squeezed middle as they are the income group who would be more likely to have borrowed higher sums by way of credit. The original wording would almost certainly have been too much to those struggling to make ends meet with hugely inflated costs of living, potential or actual redundancy and living on the knife edge of an increase in interest rates at some stage in the future. The Conservatives would not want to upset the squeezed middle; - any more than they have already.
But the biggest insult which would have been felt by many is an effective message to pay back the banks what they are owed; - many would see this as an insult given how they are currently charging far higher interest rates than the base rates and having to pay back billions in wrongly sold payment protection policies. Many people are still livid with the banks for overcharging and applying escalating interest rates.
It could also have stopped an increase in consumer spending for those who are still able to splash the cash; - this would be the last thing retailers would want to hear with a collapse in the euro markets being announced on the eve before Cameron's speech.
It could also have come as an embarrassment to the Conservatives who had made a manifesto pledge to ensure that people who owe no more than £25,000 in unsecured credit card debt would not end up losing their homes. His original message could (and potentially will) have sparked vigorous action by giving creditors a green light to seek charging orders through the County Courts in an enforcement surge on recovery actions.
Given how the Prime Minister has sensibly changed the message by recognising how people want to repay their debts, will he now see the need to ensure those in debt are given all the help they need in setting up affordable repayment arrangements with their creditors?
Why on earth is our Prime Minister backing reforms which are cutting back funding to hard working advice agencies & law centres (some under legal aid funding) who help people negotiate with their creditors?
Given his modified message, surely our Prime Minister can see the economic case for helping people pay back what they can afford?
Read more: mylegal.org.uk/index.cgi?action=display&board=frontline&thread=497&page=1#1204#ixzz1ZwnJLFHb