Economic recovery could increase consumer debt management needs
Economic recovery could increase consumer debt management needs
Monday 24th August 2009
The Connecting Business survey from Barclays has revealed that a large proportion of UK companies believe the worst of the recession is behind them and that widespread recovery is fast approaching.
However, experts have warned that even if the UK's fortunes do begin to turn, the plight of the consumer will not change with it, with unemployment expected to increase - a trend that could result in a rise in debt management needs.
According to the survey, 57 per cent of firms said they were "hopeful" over the country's economic outlook, with a further 17 per cent professing they were "excited".
Only 11 per cent of companies said they were "worried" about the economy.
Chief executive of the National Federation of Enterprise Agencies George Derbyshire said that, irrelevant of business-based recovery, the future for the consumer remained a concern, with experts anticipating increased joblessness.
He said: "Optimism is a great thing and is to be encouraged, but we do need to maintain some sense of realism because economists have also said that recovery will be slow and bumpy.
"With unemployment predicted to rise further … it's the low paid, low skilled people who are being laid off disproportionately and there will be a serious social impact from this."
With the lower end of the pay spectrum expected to be the worst hit, debt management needs among those in the most vulnerable positions could rise.
News article brought to you by Debt1 – UK debt management specialists
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