Angela Knight, chief executive of the British Bankers’ Association was on TV this morning defending the banks that are charging ever higher interest rates even as the Bank of England's rate looks set to remains at a record low for many months to come.

According to the BBC the mark up on fixed rate mortgages has risen nine fold over recent years and rates on even authorised overdrafts rose to a ten year high as banks try to boost their profits and build up their cash levels.

Knight said that is something we will all have to accept in the post-crisis world.

She pointed out banks have been criticised for lending too much in the past and said 'customers have to be more careful about borrowing now just as banks have to be more careful about lending.'

When a viewer said he was being charged 29% on his credit card borrowing she told him to get a personal loan instead and pointed out credit cards are not meant for long-term borrowing.

But Andrew Tyrie chairman of the Treasury Select Committee has said it looks like banks are charging borrowers too much.

And the Metro this morning shows many households are turning to the pawnbrokers to raise much needed cash and are relying on rolling payday loans to keep themselves afloat.

Is it just time we 'get real' and accept that we're paying now for our past extravagances and that in the future we cannot afford the lifestyle we have become accustomed to?

Or is it wrong that banks are charging borrowers ever higher rates?

With taxes and prices going up how many households can afford to be squeezed by their bailed out banks too? And as a nation can we really afford a much more 'careful' population?

After all if people stopped buying new TVs every couple of years and held off from buying all the other things they cannot afford what would happen to our retailers and car makers and all the other businesses that are relying on the UK consumer?

Do you think the banks are right to be charging ever higher rates to 'riskier' customers? Or do you think the government should step in and start capping the margins banks make on their High Street customers?

Angela Knight is "spot on " with her statement. We all need to apply the simple yardstick when deciding to borrow money by asking one's self. Is it Essential or Is it Desireable.

I agree people should not borrow so much, and Angela Knight is right in what she says.
As an ex county court official I have seen people encouraged to borrow more than they could repay, and ending up with
thier homes being re possessed. Its a pittifull sight.

What happens if the boiler breaks down or if the car breaks down and there is no money to repair it becuse let face it, saving nowadays is impossible for most peope with a family and a mortgage. You have to borrow. If we did not borrow anything at all, where would all these savers get their interest from and where would banks make their profit from as i always assumed they made profit from those who borrowed.

Mr Lacy, i managed to save a substantial amount many years ago and yes i could have put it towards my old age but i got made redundant and when i went for benefits guess what "sorry you have too much savings and you are not entitled to any assistance".
I was unemployed for about 18 months and had to live off these savings, despite paying taxes for many years and if i had been wreckless rather than prudent i would have got all the assistance i would have needed - save for old age, yes as long as you can guarantee you will never lose a job. Needless to say i wont be making that mistake again.

I do borrow m yself but make damn sure i can pay it back as i think everyone should and if i lost my income i would just sell up, rent privately and let the taxpayer pay the bill as no govt assistance to pay mortgage of £180 per week but housing benefit up to £400 per week.