Home > News > Debt advice

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 economy shrank by 1.8% in three months

13/03/2009

The UK`s economy shrank by a full 1.8% in the three-month period ending in February, an influential think tank has `unofficially` stated.

This would be a larger fall than the 1.7% decline in the three months to the end of January.

As The Telegraph reports, NIESR (the National Institute of Economic and Social Research) has unofficially made this claim a month before its official report is due.

Apparently, the think tank believes the rate of decline will only slow down when businesses are no longer `destocking` (reducing their output - a response to the lower demand for goods).

"It is possible that increased availability of bank credit may make it easier for businesses to finance stocks and thus slow the rate of contraction," stated NIESR. "The policy of quantitative easing may help in this respect, but it is a pity that it is not focused more on supporting the market for corporate debt since that would help businesses directly."

"Figures about the country`s Gross Domestic Product (GDP) might not seem particularly relevant to normal consumers," said a spokesperson for Debt Adviser Direct, "but a shrinking economy means businesses are more likely to announce paycuts or layoffs.

"Anyone can struggle when they`re dealing with a lower income, but people in debt can be affected particularly badly, as they need to maintain payments to their debts as well as their other ongoing expenses. At a time like this, it`s more important than ever to seek professional debt advice and work on reducing those debts as soon as possible."

---

Debt Advisers Direct offer free debt advice and a range of debt solutions, including debt management plans, debt consolidation loans and IVAs (Individual Voluntary Arrangements).

More than 4 million fear they`ll be made redundant 16/12/2010 - According to R3`s quarterly personal debt tracker, more than 4 Consumers took on more mortgage debt in July 26/08/2010 - Consumers took on £2bn more mortgage debt than they repaid Debts called in by parents 26/08/2010 - According to research, `the bank of Mum and Dad` is Teenagers `scared of debt` 19/08/2010 - Nearly two thirds of teenagers are `scared` of debt, according