Eurozone Lessons in Personal Credit Management
2 minute read
In recent weeks, the news has been awash with news regarding the financial crisis across the Eurozone, in particular in Greece. Greece’s high borrowing and spending has seen the country get into considerable debt which has led to them owing 250 billion euros, which is 175% of GDP (the highest in Europe). Interestingly a number of parallels and indeed lessons can be learnt from Greece’s situation, especially when compared to Ireland and their approach to debt. The key message from this comparison, is that Ireland asked for help when they needed it the most. Whereas Greece failed to address the problem that they had and left themselves in a position where they had no option but to pray their debt is written off.
Eurozone Crisis Infographic
In our recent infographic we’ve just created, we explore how Greece and Ireland’s approaches to their debt is a good way of thinking about personal credit management and the difference of someone with bad credit who is likely to get a loan (Ireland) and those who aren’t (Greece). Ireland represents a good case of someone who has fallen on hard times and made the tough changes needed to stay afloat and managed to secure a loan to help grow. Greece, on the other hand would likely struggle to get a loan from any lenders and they’re feeling the real-world consequences of this at the moment. Can you think of any similar comparisons?