Slow Improvement Predicted For Personal Wealth
The recent recession has had a huge impact on all sectors of the UK economy as well as the personal financial situation for many individuals and families, who have been struggling to make their income stretch to cover the rising cost of their monthly bills and personal loans and other debts in the face of rising unemployment and employers cutting back on things like overtime and bonuses.
Although many financial experts believe that the UK is about to officially exit recession and start to see some growth again, it seems likely that the average household in the UK will only see their wealth increase slowly over the next twelve months or so and are not likely to feel better off financially for some time to come.
The warning comes from the consumer group Credit Action, who claim that unemployment will continue to rise in the coming months, leading to more individuals being left unable to pay their monthly bills and personal loan debts. With household income falling for many people across the country, a large number of individuals have relied on personal loans and credit cards in order to make ends meet through difficult times and these loan debts now need to be repaid, impacting further on disposable income.
Chris Tapp of Credit Action said “Those type of employment issues are a real source of debt problems because they impact on people’s income so heavily. Even when the economy is doing much better there will still be many people suffering debt problems. People faced with debt may find a debt consolidation loan is the best way to lower their monthly outgoings.”
