Is debt a bad thing. Discuss the impact of debt on the housing market Essay

Is debt a bad thing. Discuss the impact of debt on the trapping market in the UK, with reference to (a) Levels of pesonal debt (b) Rent Arrears (c) Housing Association - Essay ExampleThe loan seeker might be badly in hire of the money and will accept all the conditions of the lender.Western people generally and the UK people in particular have a have a clothing of spending all the money they earned and they dont bother much about the need of saving for the future. Whenever they are in need of a bulk amount for purchasing a home or car they will approach the banks or other financial institutions for loan. These financial institutions are flying to help everybody irrespective of their financial capabilities before the reliable global economic problems started. But at present most of the financial institutions have tightened the screws by enforcing rigid rules and regulations for granting loans for individuals. Housing market is one of the most important sectors as far as the loan exercise is concerned. Some of the statistics available for the UK housing market in 2009 is given below. in that location were 6,200 first-time buyer loans for properties between the old threshold of 125,000 and the temporary threshold of 175,000, representing 32% of the 19,700 loans to first-time buyers in September. In addition, 7,800 first-time buyers (40%) bought properties valued below the 125,000 original threshold. There were 7,300 home mover loans for properties between 125,000 and 175,000 which was 24% of the 31,000 loans to home movers in September (One third of first-time buyers make lucky stamp duty escape, 2009)It is evident from the table that the borrowing habits in the housing market go on increasing. Because of the current recession, the criteria for lending have been tightened by many financial institutions and even then the borrowing habits were non affected.House prices are skyrocketing year after year and the earnings of the ordinary people are not enough to meet even for their daily expenses. The current global financial crisis has come