Sterling pound under pressure as economy struggles with debt

23/09/2009

The future could be uncertain for the pound as finance experts fear it could be on a slippery slope.

This week saw the pound fall below par with the Euro at one pound for 98 cents.

It has improved again slightly, but initial reaction to the downward exchange rate prompted a report from the Bank of England.

It claims that the UK economy isn't just struggling, we will actually lag behind other developed countries when we eventually return to pre-crisis levels.

Growing national debt and a ballooning budget deficit could be the main factors in the UK's financial troubles. The Bank of England is keeping a close eye on the pound's value – in its third quarter report for 2009 they investigate the sterling's movements.

EuroDebt’s average unsecured debt for someone on a Debt Management Plan'>Debt Management Plan is just over £24,000. This is based upon figures back to 2000. In the last 18 months they have seen this rise to over £29,000, demonstrating increasing reliance on debt to rob Peter to pay Paul.

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