UK debt and the double dip recession
The UK is now officially in the midst of its first double-dip recession since the 1970s. You don't need to be an economist to know that this is bad news, but what does it mean to you and your bank balance?
A double-dip recession is a way of saying that the economy is contracting for a second time in a relatively short period, which means that production is falling and the country is taking less money. According to the Office for National Statistics (ONS), for the second quarter running the UK economy shrunk, mainly due to a big drop in business for the construction industry. Prime Minister David Cameron described the situation as “disappointing” while Labour leader Ed Miliband went further and said that dropping into recession again was “catastrophic”, which seems a more apt choice of words.
The effects of a recession can be far reaching. If the economy is shrinking it means that there is less money being made by businesses in the UK. This is obviously tougher on those who own and run businesses, but it can go far beyond these individuals and it can change the economic landscape for all of us. With less money being taken by businesses it can mean less hours or commission for workers, pay freezes, fewer new recruits being taken on and more people can find themselves unemployed too.
This has a wider effect on the country as fewer of us will be spending on the high street while increasing amounts of people will feel the need to borrow money to keep afloat. Chances are that banks and other traditional lenders will see the decreased spending power of the nation as a reason to lend less cash to less people. Without the lifeline of a loan it could leave some people unable to meet their financial commitments.
This is where providers of long term financial solutions such as consolidation loans come in. These services will be there to catch people when they fall, giving a helping hand to those who are unfortunate enough to find themselves without the right balance between income and expenditure as the financial goalposts move. Just make sure you look at reviews before using the services of any financial organisations.
A double-dip recession is a way of saying that the economy is contracting for a second time in a relatively short period, which means that production is falling and the country is taking less money. According to the Office for National Statistics (ONS), for the second quarter running the UK economy shrunk, mainly due to a big drop in business for the construction industry. Prime Minister David Cameron described the situation as “disappointing” while Labour leader Ed Miliband went further and said that dropping into recession again was “catastrophic”, which seems a more apt choice of words.
The effects of a recession can be far reaching. If the economy is shrinking it means that there is less money being made by businesses in the UK. This is obviously tougher on those who own and run businesses, but it can go far beyond these individuals and it can change the economic landscape for all of us. With less money being taken by businesses it can mean less hours or commission for workers, pay freezes, fewer new recruits being taken on and more people can find themselves unemployed too.
This has a wider effect on the country as fewer of us will be spending on the high street while increasing amounts of people will feel the need to borrow money to keep afloat. Chances are that banks and other traditional lenders will see the decreased spending power of the nation as a reason to lend less cash to less people. Without the lifeline of a loan it could leave some people unable to meet their financial commitments.
This is where providers of long term financial solutions such as consolidation loans come in. These services will be there to catch people when they fall, giving a helping hand to those who are unfortunate enough to find themselves without the right balance between income and expenditure as the financial goalposts move. Just make sure you look at reviews before using the services of any financial organisations.