The UK’s economic output has fallen for the first time since 1992. In order to understand how to beat or at least survive this credit crunch we talk to the leading expert, James Johnson about what he thinks we can expect in the coming year.
If you are in debt call The Debt People on 0800 0377 388 |
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How far through the recession are we?
Well if we go back to the 1980’s and look at the period directly before the economic decline we see a country living beyond its means. The economy had been ‘booming’ for most of the 1980’s but by the end Britain was starting to experience a harsh wake up call. Businesses were folding and the general public were starting to experience the knock on effect with bankruptcies and repossessions mounting and queues for the dole lengthening. In the current situation we are seeing businesses collapse but haven’t yet really experienced the knock on effect on the general public. I think we are just starting to see that now.
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How will this effect the general public?
Unemployment is set to rise above 3 million by the end of the year so we could be seeing up to 10% of the workforce on the dole. This not only effects the economy, which could shrink by up to 3%, but it also effects the morale of those out of work and the wider public. There will be more people in debt and more taking out loans. I think 2009 will be one of the worst years the general public has experienced since the post-war era.
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So how far do you think we will fall before we start climbing again?
No-one really knows exactly how far we will fall into recession. In 2008 we saw a very rapid downturn with the likes of Goldman Sachs and the Lehman Brothers collapsing in the same year. The UK has recently seen the collapse of long standing companies like Woolworths, and huge corporations like Zavvi, more of which is to come. It is the retail sector which will suffer the most. It is predicted that we could see the closure of up to 1,400 retailers by the end of the year! |
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What advice do you have to ride through the recession?
There is not much any individual can do to help the wider situation except ride through it. However, we can all help ourselves individually. Look into remortgaging, consolidating debts and being stringent in your spending. If times get hard call a free debt adviser or a free loan adviser and find out your all the options available to you |
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The Debt People can help you today. Phone 0800 0377 388 |
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