A Big Rise In Poverty And Debt In The UK

A study by the Centre for Economics and Business Research (CEBR) has found that there was a 0.8 per cent fall in wealth when set against inflation last year and 2012 will see a further two per cent drop.

This shows that public spending cuts are only having a small effect on spending power, whereas high inflation and low pay settlements are having a major effect, the net result of which is households having their disposable income lowered by a collective £27.3 billion.

These are the figures that the government is not acknowledging and it's only by research like this that we are being made aware of the full impact and the outlook of things to come.

This amounts to approx £910 a year on average per household, and such a figure may make it harder still for those wishing to become debt free to achieve this. Something which advisors at Integrity are extremely worried about and are advising people to deal with the problem now before the situation gets worse.

This is the worse the situation has been since 1921 and has certainly set alarm bells ringing.

In comparison in does mean that the UK is feeling the pinch more than the Great Depression of the 1930s.

It has already been commented on that those who have credit card debt may find the best way to tackle the problem is to take on a loan that charges a lower rate of interest, reducing monthly outgoings. However advisors at Integrity have warned against this as it could be a pathway to even deeper debts with lenders raising interest and charges to compensate.

With income falling this also means that we are seeing the biggest drop in middle class incomes since the 1970's. The Institute of Fiscal Studies has reported that this will push a further 600,000 children into poverty in the UK, and by 2013 there will be around 3.1 million children in poverty with families facing a massive personal debt crisis.

The UK is now seeing a 'big rise in poverty" and debt.

The fact that household bills and living costs are rising each year, has set alarm bells ringing and with families getting more and more desperate, the idea of payday loans and loan sharks is ever more needy for them. People are getting deeper and deeper into debt with credit cards and loans and it is only a matter of time before something has to give.

Integrity Financial Services advises anyone with financial or debt problems to contact them now for professional and impartial advice before the problem gets much worse for everyone.

(Author: Darren Perks)