Will the UKs wallets be dry?

Will the UKs wallets be dry?

Over the past couple of years the UK has been struggling and battling to get out of the never ending recession. This recession has resulted in devastating circumstances from 2009 onwards over the years:



The Telegraph

• Unemployment rose by 877,000 from April 2008 to hit 2.49 million in the three months to October 2009.
•  The recession saw a 12-month slump for manufacturers with output down almost 14% year on year at its worst point - the lowest seen since the 17% fall in output in 13 successive months of decline between 1979 and 1980.
• Borrowing is set to hit a record £178 billion in the current financial year - 12.6% of the country's entire output - due to a slump in tax take and higher spending on unemployment benefits and economic stimulus measures.
•  To combat recession the Bank of England slashed interest rates to just 0.5% in March last year - the lowest since the Bank was founded in 1694.

Contrastingly, 2013, near to an end has shown that the UK has successfully mananged to slowly but surely come out of the recession. However 2014 is not promising anything spectacular, but instead warns the economy to prepare for upcoming crisis'.

It has been predicted by the 'Resolution Foundation' that if the UKs interest rate increases up to 3% from 2014-2018, people that use more than half of their disposable income to repay debt will increase from approximately 600,000 to 1.1 million people.

Additionally, although the UKs future may look much more rosy than its former crisis, it is believed that the number of households exposed to debt will double. This is inclusive of mortgages being a prominent factor causing debt.

With this prediction, the UKs wallets will have to prepare for a change in their standards of living!