Debt advice news: 'Patchy' recovery for UK

13/01/2010

A "patchy" recovery is under way in the UK, but experts have warned against "excessive optimism".

People with personal income worries may be encouraged to hear that a "patchy recovery" is under way in the UK's economy, according to industry experts.

Following the release of PricewaterhouseCooper's (PwC)review of the financial services sector, the chief economist at the British Chambers of Commerce (BCC) has said that the UK is on the road to recovery, albeit a difficult one.

The chief economist David Kern said: "We are going to go in the right direction but it is going to be very shallow and slow.

"I don't think there is any need for any pessimism but I don't think there is any excessive need for too much optimism."

At the beginning of the recession, the squeeze was expected to take its heaviest toll on the financial services sector.

Recent figures from the Office for National Statistics show that the financial sector got off relatively lightly, while workers in the manufacturing sector were heavily hit by mounting debt following the loss of jobs.

Director of EuroDebt Kevin Still, said: "There will be a debt hangover from the recession as people increase income as the employment market improves.

"For those with formal or informal repayment arrangements in place with their creditors, there will be an expectation that personal debts are paid off faster as more disposable income becomes available.

"This may be a bitter pill for some, but discipline will be required to clear debts at an affordable rate either through self-management or through a Debt Management Plan or an IVA."

Tags; Current UK Economy,

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