Borrowers should take caution

Despite the fact that the Central Bank is rather confident that the economy will continue to grow, the warning contained in its quarterly bulletin about borrowing must be recognised for the danger it could signal.

The stark message is that people are seriously living beyond their means to the extent that for the first time in this country, mortgages and other borrowings have exceeded incomes.

One does not have to be an economist to realise that if a person loses their job, or interest rates are increased, then the family home could be threatened by excessive borrowings.