Did you wake up feeling better off today? Yesterday, the Office of National Statistics (ONS) revealed that the UK is now officially out of the recession - our longest since records began in 1955. But what does it actually mean to those of us struggling to pay back credit card debts and debt management plans?
There have been many opinions banded about on financial and debt blogs over the last 24 hours as to the accuracy of these figures, but we wont go into that now! The economy rose by 0.1% in the last quarter of 2009 according to the ONS, but this was not enough to stop the Gross Domestic Product (GDP) figure dropping by 4.8% over the whole of the year.
But how should debt ridden Britons react to the news? One thing we shouldnt be doing is scrapping those debt management plans and running out to spend our credit card limits! We may be officially out of recession, but if you are currently unemployed it is not necessarily a white light at the end of the tunnel. Some analysts are still even predicting unemployment to rise throughout 2010.
You also might think that the end of the recession could make things cheaper; improving your disposable income. Unfortunately this may not be the case. Taxes such as VAT and Income tax could still rise in 2010, affecting consumers across the UK. Seeking debt advice is crucial for 2010 if you are currently struggling to make your debt repayments.
Inflation is another potential hazard for our debt management clients. It is already above the official target, and if it continues to rise then it could lead to people with debts they cannot afford to pay due to increase in living costs.
In summary then, the end of the recession may not be as rosy as Gordon Brown would want us to believe, but with free debt advice from MRA Debt Help, and some sensible budgeting it could work for you.
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