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More than 4 million fear they`ll be made redundant Consumers took on more mortgage debt in July Debts called in by parents Teenagers `scared of debt` Rising household costs could pressure people in debt Pensions debt may impact workers` retirement funds Welsh young adults `at highest risk of debt problems` Over 50s can`t afford to enjoy retirement because of debts Budget: tackling the nation`s debt Short-term debt: `no need for price control` The cost of clearing debt Education debt Tackling the national debt Number of mortgage deals on offer exceeds 3,000 Almost 5 million take on debt to pay household bills OECD: household debt more than 120% of disposable income Petrol price falls help people in debt Amount of mortgage debt taken on at lowest level in ten years Northern Ireland sees significant IVA rise Overdraft debt `becoming more expensive`

UK borders on recession as economic output falls

11/09/2008

The National Institute of Economic and Social Research (NIESR) has announced that the output of the UK economy fell by 0.2% between June and August – another sign that a recession may be imminent.

An economy is considered officially in recession if GDP (Gross Domestic Product) growth is negative in two consecutive quarters.

The news comes after a separate NIESR report had shown a drop in economic output of 0.1% in the three months ending July.

The NIESR has predicted a further fall in the months leading to the end of September, but does not expect the rate of decline to worsen.

A spokesperson for Debt Advisers Direct said that lower-income families and those struggling with debt are most at risk as the economy slows.

“The psychological as well as financial aspects of a recession could lead to large reductions in consumer spending and job cuts, which would only worsen the problem.

“We expect that many people may struggle financially in the next few months, especially if a recession does take hold. We would advise anyone who feels they may be struggling with debts or other financial commitments to minimise the impact by seeking professional debt advice as soon as possible.”

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Debt experts DebtAdvisersDirect.co.uk provide debt advice and a range of debt solutions, such as debt consolidation loans and IVAs (Individual Voluntary Arrangements).

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