Banks closed lending faucets to families as inflation suppressed wage hikes


Here is a little cheer for the average family these days because inflation has crushed a negligible increase in income. Inflation is 3%, while wages rise no more than 2.5%. To the worse of the average family, banks are starting to close lending lending so they can raise their incomes with cheap debt.
According to the National Bureau of Statistics digital survey agency statistics, the situation will be better by April 2017, they have been in the annual family expenditure report has strangled spending habits in the United Kingdom.

This shows that average weekly household spending has returned from its depth of economic recession in 2009 to its pre-crisis level for the first time.

Although five or six years later than many economists, the good news masks how well their lives are compared to those at the bottom of the income ladder.

For example, the richest 10% spent $ 10.95 (£ 9.40) a week on wine and spent the worst 10% (£ 7.30) spent on water.
Similarly, the richest 10% spent £ 59.40 on “furniture and furniture, carpets and other flooring”, matching the worst 10% on rent (£ 62.70).

The survey found that the richest 10% used twice as much (17.50 pounds) of weekly stores for “alcoholic drinks, tobacco and narcotics” as the poorest people.

But what really catches the eye is the new rich, 65-74 year olds. They may not cost as much as 10%, but in the areas of entertainment and entertainment, the average cost of 20 points has greatly increased.

Figures show that in the decade of the 65th birthday, the consumer frenzy means that nearly one in five entertainment and cultural expenses more than doubled, more than double the 30-year-old.

This is the final salary pension, which can only be described as the consumption growth of a generation. The same applies to sub-par income for all ages. Their spending increased 7% over the previous year, well above 1% of the wealthiest half of households. Unfortunately, they largely solve this problem by reducing their savings and extra debt

Because banks control lending under the guidance of financial regulators, debt-driven expenditures should be considered one-time benefits, just like the final payroll. However, this seems unlikely. Banks rely on borrowings to profit.