Personal debt problems will not see an immediate improvement following the UK’s
exit from the recession, an expert has claimed.
The Office for National Statistics has announced that the recession ended in
the last three months of 2009 with a recorded growth in gross domestic product
of 0.1 per cent.
However, Malcolm Hurlston, chairman of the Consumer Credit Counselling Service,
believes it will be a while before we see this have a positive impact on
people’s personal finances.
"There are still hundreds of thousands of people wondering how they are going
to pay their bills over the next year. As the economy improves, we shall still
face a scorpion's tail of debt."
Hurlston was quick to highlight that the number of people needing debt
assistance in the UK rose by 25% over the last 12%.
For free debt advice, click here.
However, according to new research, the growth in the economy has coincided
with a further increase in consumer confidence. The Neilson-British Retail
Consortium found that for the third quarter in a row, people in the UK are
feeling more positive about their job prospects and finances.
Personal debt levels remain the biggest worry for the majority of people during
the coming six months, followed by the economy and rising utility bills.
Four out of 10 people intend to save extra money this year – the highest level
since the survey began in 2004. Of these savers, 29% said they’ll use the money
to pay off their debts.
Justin Sargent, managing director of Nielsen Consumer UK, said: "We are in
the foothills of what will be a slow climb out of recession.
"While people are feeling ever so slightly better about job prospects and
personal finances, a definite air of caution prevails."
Stephen Robertson, director general of the British Retail Consortium, said:
"We're heading in the right direction. It's encouraging to see consumer
confidence improve steadily since the survey's low last April. But we've still
got a long way to go before confidence levels hit their pre-recession
highs."
Many people will be looking towards loans, debt management plans, IVAs and
balance transfer credit cards to free themselves of debt this year.
For free impartial advice on what debt action you should take, click here.
|