Debt problems could return with 'double-dip' recession

26/01/2010

Although the UK is technically no longer in a recession, a currency expert has warned that we're not yet in the clear.

Mark Bolson, a City expert from Travelex, has warned that businesses are still tightening their budgets and further redundancies are possible.

This could be passed on to consumers who are already struggling with debt problems.

Mr Bolsom said: "Although we are expected to come out of recession officially tomorrow, for many businesses economic recovery remains completely intangible. They still have to make redundancies and slash budgets as their recovery remains sluggish.

"We think that the chances of a double dip recession cannot be ruled out. Unfortunately, we forecast a bumpy couple of years for UK consumers and businesses."

Official data released by the Office for National Statistics today (January 26th), demonstrates that the UK has experienced 0.1 per cent growth; meaning that officially the country is no longer in recession.

Kevin Still, director of EuroDebt, commented: "For consumers in financial difficulty this news really means nothing, job security remains unstable and jobless figures seem to convey a rosier picture than reality where many are working part-time or have taken pay cuts with new jobs.

"Rising inflation and household expenditure remain a real threat, especially if interest rates have to go up to counter this. We expect to see a rise in demand for debt solutions like Debt Management Plans and IVAs."

Tags; Income Worries and Debt,

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