Recent News
Bank bailout pushes UK's national debt to £2.1trillion
The national debt is likely to be catapulted through the £2
trillion mark following the Treasury's decision to stand behind
Britain's troubled banks' debts.
In the latest Government figures, which underline fears about
the impact of the crisis on the taxpayer and may spark further
jitters over Britain's creditworthiness, the Office for National
Statistics expects to have to add between £1 trillion and
£1.5 trillion to the UK's public sector net debt, taking
the total national debt to an unprecedented £2.2 trillion
equivalent to £35,000 for every man, woman and child in
Britain.
People seeking debt solutions and personal insolvency set for
dramatic rise during 2009
The combined effects of economic factors, rising unemployment
and the continued squeeze on household disposable income plus
fewer opportunities to refinance debts or rely on equity release
will push more people into formal debt solutions such as debt
management plans, trust deeds and sequestration.
The inability to rely on refinancing debts will see a dramatic
shift in the way distressed debtors will seek to resolve their
financial difficulties. The combined effect of lower property
prices and tighter lending criteria by the banks and building
societies will mean fewer refinancing solutions, such as remortgaging
and homeowner loans.
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